On July 11, 600727.SH announced that it intends to raise no more than 300 million yuan (including capital) through summary procedures, which will be used for the annual production of 60, 000 tons of chlorinated titanium dioxide expansion project after deducting the relevant issuance costs. Lubei Chemical said that through this increase, the production capacity of chlorinated titanium dioxide will be further improved and the product structure will be more optimized. at the same time, it will help to enhance capital strength and profitability, improve anti-risk ability, and effectively ensure the sustainable development of the company.
According to the announcement, Lubei Chemical intends to issue no more than 70 million A-shares (including capital) to specific targets through a summary procedure, and no more than 30 per cent of the company's total share capital before this issue.
As early as March 6, Lubei Chemical announced that Shandong Xianghai Titanium Resources Technology Co., Ltd. (hereinafter referred to as "Xianghai Science and Technology"), a wholly owned subsidiary of the company, planned to invest 719 million yuan to build an annual production capacity of 60, 000 tons of chlorinated titanium dioxide expansion project.
The project is implemented in Lubei Chemical Industry Park, Binzhou City, Shandong Province. In the existing 60,000 tons / year titanium dioxide chlorination plant, relying on the existing building installation equipment and supporting public auxiliary facilities, the 60,000 tons / year chlorination rutile titanium dioxide plant has been expanded. At the same time, it is equipped with a new chlorine production plant with an annual output of 20,000 tons of electrolytic hydrochloric acid, and all chlorine products are for self-use. The total investment of the project is 719 million yuan and the construction period is 19 months.
Lubei Chemical said that after the completion of this project, the company will have an annual production capacity of more than 200000 tons of sulfuric acid process and 120000 tons of chlorination process titanium dioxide, the production capacity of chlorination process will be further expanded, and the product structure will be more optimized. market position and competitive advantage will be significantly improved. After the project is put into production, the estimated after-tax internal rate of return is 9.69%, and the static investment payback period is 6.41 years (after tax, including construction period). The expected benefit is good.
According to public data, Lubei Chemical, founded in June 1996, is located in Chengkou Town, Wudi County, and is a listed company mainly engaged in titanium dioxide, methane chloride, chemical fertilizer, cement, salt and other businesses. the products are widely used in chemical industry, agriculture, construction, medical treatment, production, life and other fields.
Xianghai Technology is a wholly owned subsidiary of Lubei Chemical Co., Ltd., together with Shandong Jinhai Titanium Resources Technology Co., Ltd. (hereinafter referred to as "Jinhai Titanium Industry") to form the business plate of titanium dioxide in Lubei Chemical Industry. Xianghai Science and Technology is mainly engaged in the production, sales and service of chlorinated titanium dioxide. At present, it has an annual production equipment of 60,000 tons of chlorinated titanium dioxide. The products are mainly divided into high-grade decoration special type, paint special type, plastic special type and general type. It has the advantages of good mobility, strong yellowing resistance, good color blending stability and high quality, and can be used in industries with high gloss and high hiding power instead of imported products.
"after the successful implementation of this offering and fund-raising investment project, the company will further optimize the existing product structure, enhance the added value of products, enhance market competitiveness and anti-risk ability, and help the company to grasp industry development trends and market opportunities. To achieve large-scale and lean production, further increase market share, enhance the company's core competitiveness and sustainable profitability." Lubei Chemical said.
Titanium dioxide promotes the performance of the company.
A few days ago, Lubei Chemical issued a pre-increase announcement on its performance for the first half of 2024. It is expected that the company will achieve a net profit of about 150 million yuan in the first half of 2024, an increase of about 1091 percent over the same period last year. It is estimated that the net profit will be deducted to about 147 million yuan, an increase of about 1108 percent over the same period last year.
Lubei Chemical said that in the first half of 2024, the sales of some of its products increased significantly compared with the same period last year, including an increase of about 28.57 per cent for titanium dioxide and 36.69 per cent for methane chloride products. At the same time, the prices of the two products increased, the price of titanium dioxide products increased by about 5.36% compared with the same period last year, and the price of methane chloride products increased by about 1.75% year-on-year, thus increasing the company's profits.
From the perspective of the income composition of the main business in 2023, titanium dioxide and methane chloride are the main sources of income of Lubei Chemical Industry.
In 2023, Lubei Chemical achieved a main business income of 4.729 billion yuan. Among them, the income of titanium dioxide products was 3.275 billion yuan, accounting for 69.3% of the main business income of Lubei Chemical Industry, and the income of methane chloride products was 757 million yuan, contributing 16.0% of the main business income of Lubei Chemical Industry.
A reporter from the Economic Herald learned that titanium dioxide is currently the best white pigment in the world, accounting for about 80% of all white pigment usage. In addition to traditional paints, paints and plastics, the downstream industry of titanium dioxide has gradually expanded to cosmetics, toys, food, medicine and other fields. With the economic development, scientific and technological progress and the deepening of application research, the application of titanium dioxide has been gradually extended to new energy, high-end equipment and other fields.
Lubei Chemical Industry is one of the few domestic enterprises with both sulfuric acid and chlorination titanium dioxide production processes, and the output of titanium dioxide ranks fourth in China in 2023.
According to reports, compared with the production of titanium dioxide by sulfuric acid process, the chlorination process has the advantages of short technological process, easy to realize continuous automation, less discharge of "three wastes", and easier to obtain high-quality rutile titanium dioxide, and gradually occupies the leading position of the global titanium dioxide industry.
Last year, with the advantage of technological innovation, Lubei Chemical completed the upgrading and transformation of rutile titanium dioxide R6658, which was recognized by Hongmei, Wachovia and other major terminal manufacturers, and has now achieved mass production; promoted the upgrading and transformation of ink products, has produced some samples and put on the market; chlorinated titanium dioxide has newly launched a special product for CR758 plastic, which has been put on the market and achieved good market response.
Data show that in 2023, the output of titanium dioxide in Lubei Chemical Industry was 235600 tons, accounting for 5.58% of the total output of titanium dioxide in the country, of which the chlorination process accounted for 16.51% of the total output of titanium dioxide and 6.29% of the total output of titanium dioxide by chlorination process in the country.
