Lubei Chemical: Signed a contract with Shandong Lubei Zirconium and Titanium New Material Technology Co., Ltd. to invest and build a selection project with an annual processing of 600,000 tons of zirconate and titanium ore

On October 30, Lubei Chemical announced that Shandong Lubei Zirconium Titanium New Material Technology Co., Ltd., the company's controlling subsidiary, plans to invest in the construction of a selection project processing 600,000 tons of zirconite ore per year. The total investment of the project is 257.918 million yuan, derived from self-raised funds. The project covers a total area of 200 acres and is expanded based on the original facilities of the titanium concentrate sorting project of Shandong Zhongtan Fuhai New Material Technology Co., Ltd. with an annual output of 1 million tons, with 730 new equipment. The construction period of the project is 12 months. After reaching production capacity, it is estimated that the annual operating income will be 2.6176 million yuan, the total annual profit will be 147.0327 million yuan, the income tax will be 36.7582 million yuan, the business tax and surcharges will be 3.681 million yuan, the after-tax profit will be 110.2746 million yuan, and the investment payback period will be 2.72 years (before tax). The company's move will help reduce the cost of raw materials for titanium dioxide production, enhance product competitiveness and profitability, and improve the company's strategic layout of the titanium dioxide industry. Investment will not have a significant impact on the company's financial status and operating results in the short term, but there are macro policy risks, market change risks, raw material supply risks, etc.