1. What are the main reasons for the year-on-year decline in the company's performance in 2022 and the first quarter of 2023? And what do you think of the future of the main business?

Answer: Hello, nbsp;. The relationship between supply and demand in the company's main product market is affected by the periodic decline in the demand of some downstream customers, resulting in a reduction in profitability. In 2022, facing the complex external situation in China and the impact of multiple factors exceeding expectations in the industry, the company continued and implemented the management idea of "production and marketing, cost control is the core, and product quality should be guaranteed". Relying on the advantages of raw materials and strengthening cost control, the company achieved an output of 334300 tons and sales of 325900 tons of rutile titanium dioxide, and successfully completed the annual production and operation plan. In the first quarter of 2023, due to the change of internal environment, the decline of production and sales caused by factory production reduction and the lag of orders for the implementation of new prices after price increases, the performance declined due to the impact of the financial statements in the first quarter. Driven by the environmental protection policy and the limited production capacity of China's core raw materials, the future sulphuric acid titanium dioxide market will show a benign pattern of "mainly expanding production in China, increasing coverage of the global market and in parallel with its demand". The cyclical attribute of the industry is diluted, and the leading enterprises will rely on the advantages of resource endowment, scale cost and other advantages to create a long-term and stable profit level. After the completion of the non-public offering project in 2021, the company will become one of the largest producers of titanium dioxide by sulfuric acid process in the world, and further enhance the profitability and sustainable development ability of the company's titanium dioxide business plate by building a green circular industrial economy and speeding up the layout of resources business plate to create a horizontal and vertical integrated industrial chain.

Hello, leader, what is the focus or focus of the company's development in the future?

Answer: Hello, nbsp;. During the 14th five-year Plan period, through the strategic means of "endogenous growth and epitaxial mergers and acquisitions", the company plans to focus on the four business sectors of "resources, chemical industry, new materials and new energy", and comprehensively distribute the upstream and downstream of the industrial chain. to create a "sulfur-phosphorus-iron-titanium-lithium-vanadium" green circular industrial economy, and strive to form one of the largest sulphuric acid titanium dioxide production enterprises in the world, and create the most competitive battery material production base. The transformation and upgrading of traditional manufacturing enterprises is an important way to achieve high-quality development of China's manufacturing industry. While promoting the integrated circular economy and strengthening the R & D strength, the company will actively extend to the upper reaches of the industrial chain to realize the comprehensive utilization of the whole chain and further tap the enterprise value while reducing the cost and increasing the efficiency and enhancing the core competitiveness. In the future, the company will focus on locking the core resources of the main products by including but not limited to strategic cooperation, equity participation and holding in order to consolidate the layout of related sectors.

3. Has the company obtained the relevant procedures such as EIA for the project of ilmenite concentrate in Hami? Or when it is expected to obtain all the development-related procedures. In addition, this project has signed an agreement, what important formalities or other matters need to be carried out during the formal production of titanium-iron concentrate, and how long will it take to put into production?

Answer: Hello, nbsp;. The company has established a project company and signed a framework agreement with the people's Government of Hami City. In the follow-up, with the support of relevant government departments, various evaluation approvals will be obtained as soon as possible in accordance with the rules and regulations. After meeting the conditions for investment and construction, the company will carry out the corresponding investment review procedures in accordance with the requirements of laws and regulations. Specific investment scale, construction cycle and other related content, please pay attention to the company's follow-up related announcement.

4. It is mentioned in the annual report that the 100000-ton iron phosphate project will be put into production this year. In which month is it expected to start production? Judging from the current market price, what is the gross profit margin of our project after it is put into production? Is there a timetable for the construction of the remaining iron phosphate and lithium iron phosphate?

Answer: Hello, nbsp;. The first phase of the company's "annual production capacity of 500000 tons of iron phosphate project" (100000 tons of iron phosphate / year) has been commissioned and is expected to be sold in this quarter. Please pay attention to the follow-up announcement of the company. The second phase (400000 tons of iron phosphate / year) will be built after the completion of the first phase of the project. The lithium iron phosphate project will be implemented step by step and invested in stages according to the company's iron phosphate production and market environment. The company will speed up the construction of various projects and fulfill the obligation of information disclosure in accordance with relevant laws and regulations.

5. How big is the profit space of titanium dioxide industry where the company is located? What is the company's market share?

Answer: Hello, nbsp;. The profitability of titanium dioxide industry is mainly affected by raw material prices and product market prices, and is closely related to market supply and demand. Its profit space is mainly reflected in the cost advantage, product price advantage, the company with unique resource endowment, customized product premium and other advantages in the industry profit level in a leading position. The company currently has a production capacity of nearly 400000 tons of rutile titanium dioxide, ranking second in the country and sixth in the world, accounting for about 9 per cent of China's production and sales.

6. What is the percentage of revenue in the main areas of the company? What is the layout at home and abroad?

Answer: Hello, nbsp;. In 2022, the company's Chinese revenue accounted for 57.49%, and foreign income accounted for 42.51%. In the future, the company will focus on strengthening the sales force of foreign trade and developing new large customers around Southeast Asia, Belt and Road Initiative and other developing countries.

7. What is the estimated turnover this year? Can the profit margin be improved?

Answer: Hello, nbsp;. The company set a financial budget target of no less than 10% year-on-year growth in operating revenue in 2023. Stock business, relying on the advantages of raw materials, strengthen cost control, improve sales efforts to achieve cost reduction and efficiency, production and marketing balance. In terms of incremental business, by speeding up project construction and completing product verification with downstream customers ahead of time, incremental sales and profits are formed as far as possible.

8. Good leader, the company plans to invest 1.2 billion yuan in Hami low-grade vanadium-titanium magnetite project, what kind of impact will it have on the company's development in the future?

A: Hello. After the completion of the vanadium titanium magnetite project, the annual production capacity of 600000 tons of titanium concentrate and 700000 tons of iron concentrate will be formed, which will form a highly self-sufficient supply of main raw materials for the company and create a vertically integrated industrial chain. further strengthen the company's core competitiveness and profitability. The project is in line with the company's plan to build the integration of vanadium and titanium industry, has a positive impact on the development of the company's resources business plate, and will lay a solid foundation for the follow-up implementation of the "sulfur-phosphorus-iron-titanium-lithium-vanadium" green recycling industry project.

9. Will the company refinance this year to refinance the next batch of energy storage projects and Hami mineral plans?

Answer: Hello, nbsp;. After the company completed the non-public stock refinancing project in 2021, as of March 31, 2023, the company's net assets reached 12.34 billion yuan, monetary funds exceeded 8 billion yuan, and the credit situation was good. It has sufficient financial strength to invest in fund-raising projects and other planned investment projects. Please pay attention to the relevant announcement of the company for the specific amount of investment and the source of investment funds.

10.What are the main downstream customers of the company? How's the stickiness?

A: Hello. The downstream customers of the company basically cover all areas of titanium dioxide applications, including coatings, papermaking, plastics and inks. The company's sales cover various industries in China and are exported to Southeast Asia, South America, Europe and other regions. The main customers are leading enterprises in various application fields, such as Huawang Technology, Akzo Nobel, Xuan Wei, Libang and so on. In the past three years, the total sales amount of the top five customers and the proportion of total annual sales have increased year by year. The company has formed a long-term and stable supply and marketing relationship with major customers through customized products, and the customer stickiness is strong.

11. After holding shares for two years, the company's share price has been falling continuously, and the shares repurchased by the company last year have lost money. Does the company have any relevant plans to boost the stock price?

Answer: Hello, nbsp;. In 2022, due to the influence of the macro-economy outside China and the great fluctuation of supply and demand in the industry where the company's main business is located, the company's profit level declined periodically. Based on the confidence in the future development prospects, the company implemented a repurchase plan of more than 500 million yuan from May to June 2022, repurchasing a total of 64354132 shares, in order to promote the stable and healthy development of the company and enhance investor confidence. In the strategic transition period with both opportunities and challenges, the company will, as always, fulfill its corporate responsibilities with the goal of high-quality sustainable development and bring long-term returns to all shareholders.

What is the order volume of the company in the first quarter of 2023? How many orders are in hand at present?

Answer:   Hello! In the first quarter of 2023, the production and sales of the company are balanced and the orders on hand are saturated. It is expected that the production and marketing target for the whole year can be successfully completed.

13. What is the current level of R & D investment in the industry? How is the R & D output?

Answer: Hello, nbsp;. The company has invested more than 100 million yuan in R & D in the past three years, which is in a leading position in the industry. A number of R & D projects have made progress, which is conducive to improving the company's production technology, enriching the company's product structure and strengthening market competitiveness. For specific R & D investment, please pay attention to the company's regular reports.

14. Will the company adjust its current dividend model in the future?

Answer: Hello, nbsp;. The profit distribution plan put forward by the company's board of directors is in line with the relevant laws and regulations and the relevant dividend policy system of the company. At the same time, the company implemented a buyback plan to protect the rights and interests of shareholders in 2022. In the future, the board of directors of the company will fully listen to the views of minority shareholders and set up a dividend scheme combined with the stage of the company's business development to ensure the maximum interests of all shareholders.

15. What risks does the company face in its current production and operation? How to resolve it?

Answer: Hello, nbsp;. At present, the company mainly faces the following risks in production and operation: the risk of intensified market competition, the risk of purchase price fluctuation of major raw materials, the risk of fluctuation of product sales price, the risk of exchange rate fluctuation and the risk that the progress of project investment is not as expected. In view of the above possible risks, the company will further strengthen the investigation and research on the future development trend and competition pattern of the industry, increase R & D investment and technology introduction, and enhance the company's competitiveness in the industry; the purchase price and sales price, which have a great impact on the company's profitability, will be determined by the company price committee through collective analysis and judgment, so as to avoid major deviations. Actively pay attention to the fluctuations of the foreign exchange market and the trend of the exchange rate, and make use of financial instruments such as foreign exchange hedging to seek profits and avoid risks. According to the market situation, arrange the implementation schedule of the project construction to ensure that the risks faced by the company are preventable and controllable.

16. The company's source network charge storage project sounds a lot like Tesla's super energy storage project. Will it cooperate with Tesla?

Answer: Hello, nbsp;. The National Development and Reform Commission and the National Energy Administration issued the guidance of the National Energy Administration of the National Development and Reform Commission on the development of "integration of scenery, water, fire and storage" and "integration of source network, load and storage". It is emphasized that the "integration of source network, load and storage" focuses on load demand, and through the optimization and integration of local power side, grid side and load side resource elements, it is supported by advanced technologies and institutional mechanism innovation such as energy storage. With the goal of safety, green and high efficiency, we should innovate the mode of power production and consumption, explore the development path for building a new generation of power system with high integration of source and network load and storage, and realize the deep coordination of source, grid, load and storage. As a supporting project of the company's "sulfur-phosphorus-iron-titanium-lithium" green recycling industry, the 2GW source network charge-storage integrated new energy project is an important layout of the company's new energy business plate. In the future, the company will continue to pay attention to the energy storage market of supporting new energy power stations and carry out leading technology and market research on new energy storage batteries.

17. What is the progress of the vanadium battery project of the company?

Answer: Hello, nbsp;. The company has set up a holding project company, based on Gansu layout of the national long-term energy storage market. In the future, the company will focus on relying on vanadium and titanium resource endowment to promote the production capacity construction of vanadium electrolyte. Please pay attention to the company's follow-up announcement about the progress.

18. The company will ship lithium iron phosphate in the second quarter. Has it signed a contract with the relevant battery manufacturers downstream?

Answer: Hello, nbsp;. The first phase of the company's "annual production capacity of 500000 tons of iron phosphate project" (100000 tons of iron phosphate / year) has been commissioned and is expected to achieve sales in this quarter. At present, the products have been sent to many Chinese head, large-scale lithium iron phosphate manufacturers for technical communication and product certification, and reached a supply and marketing intention cooperation relationship with the relevant parties. Sales, please pay attention to the follow-up announcement of the company.

19. After the company informed the company that it had just joined the rcep organization last year, its performance has not changed significantly, so has it improved in terms of foreign exports after entering rcep this year?

Answer: Hello, nbsp;. The company has formed a long-term and stable supply and marketing relationship with a number of large overseas downstream enterprises by means of customized product research and development, increasing the proportion of direct sales, and formulating major customer strategies. The company's export sales accounted for more than 40% in the past three years, which is in a leading position in the industry.

20. What is the progress of the 2Gw source network charge storage project of the company, can you tell us whether it will be refinanced?

Answer: Hello, nbsp;. As a supporting project of the company's "sulfur-phosphorus-iron-titanium-lithium" green recycling industry, the 2GW new energy project is an important layout of the company's new energy business sector. it will greatly increase the proportion of green electricity in the enterprise energy consumption structure and achieve energy evaluation standards. at the same time, it will provide the company with extremely cost-effective, clean and low-carbon green energy, which is conducive to the company's carbon footprint certification of planned and constructed products such as lithium iron phosphate. Further reduce product costs, improve the recognition of the company's products in the international market, and improve the company's comprehensive profit level. The company is implementing the power generation index and land use index of the 2GW new energy project respectively. Power generation index: the company and China Electric Power Engineering Consulting Group Zhongnan Electric Power Design Institute Co., Ltd. have completed the preparation of the implementation Plan of Baiyin Dongfang Titanium Source Network and Storage Integration Project, and submitted it to the relevant development and reform departments for examination and approval during the reporting period. at present, it has passed the evaluation of the third-party units entrusted by the Provincial Development and Reform Commission. It is expected that no less than 600MW of new energy project target will be achieved in 2023; land use index: Baiyin China Nuclear era signed a 2GW new energy power generation project investment framework agreement with Jingtai County Government of Baiyin City, and signed a photovoltaic project land lease contract with Jingtai Shoulu Industrial Investment and Development Group Co., Ltd. After the above-mentioned indicators are landed, the company will carry out the relevant investment review procedures and determine the sources of investment funds in accordance with the requirements of laws and regulations.