Yongjin Co., Ltd. plans to establish a joint venture company to expand the scale and production capacity of titanium materials business, release its pre-profit of over 400 million yuan in the first half of the year, a record high

On the evening of July 28, Yongjin shares announced that the holding subsidiary Henan Zhongyuan Titanium Industry Co., Ltd. (hereinafter referred to as "Zhongyuan Titanium Industry") and Panzhihua Iron and Steel Group Xichang New Steel Co., Ltd. (hereinafter referred to as "New Steel") jointly funded the establishment of Sichuan Panjin New Materials Co., Ltd. (provisional name, subject to the name approved by the market supervision department). The joint venture company plans to have a registered capital of 200 million yuan, of which Zhongyuan Titanium Industry plans to contribute 132 million yuan, accounting for 66 percent, and the new steel industry plans to contribute 68 million yuan, accounting for 34 percent.

After the establishment of the joint venture company, it will be responsible for the investment and construction of the "annual processing 40,000 tons of high-end titanium and titanium alloy melting and forging project". The total investment of the project is about 700 million yuan, which will be solved by the joint venture company or self-raised funds. the project is divided into two phases, of which the first phase of the project plans to build a production line with an annual production capacity of 20,000 tons of titanium and titanium alloy in 12 months; the second phase of the project plans to build an annual production line of 20,000 tons of titanium and titanium alloy within 12 months, and the second phase of the project will start within three years after the first phase of the project is put into production.

For this joint venture investment project, Yongjin said that it is to give full play to the advantages of their respective fields, better cooperation in the field of titanium and titanium alloys, and achieve complementary advantages and win-win cooperation. After the completion of the project, the company's titanium business scale will be expanded, titanium production capacity will be enhanced, which will help to enhance the company's profitability and promote the sustainable development of the company.

It is understood that Yongjin, founded in August 2003, is a well-known enterprise in R & D, production, sales and service of cold-rolled stainless steel strip. The company's products cover precision cold-rolled stainless steel strip and wide cold-rolled stainless steel strip, which are widely used in electronic information, household appliances, medical devices, environmental protection chemical industry, automobile transportation and other fields.

In recent years, Yongjin shares continue to cultivate the main stainless steel industry, vigorously promote the production capacity planning of the main products. At the same time, the company also actively expand the downstream new materials industry, through the industrial chain integration to achieve diversified development strategy. Benefiting from the release of new production capacity, the company's profits have increased significantly.

Financial data show that Yongjin shares did not increase profits for two consecutive years in 2022 and 2023. In 2022 and 2023, the company's operating income was 39.56 billion yuan and 39.87 billion yuan respectively, an increase of 26.11% and 0.81% respectively over the same period last year, and net profit was 487 million yuan and 453 million yuan respectively, down 17.64% and 6.94% respectively over the same period last year.

In the first half of 2024, Yongjin is expected to make a net profit of 400 million yuan to 450 million yuan, an increase of 87.34% to 110.76% over the same period last year, and an estimated deduction of non-net profit of 280 million yuan to 325 million yuan, an increase of 41.41% to 64.14% over the same period last year. Among them, the net profit exceeds 400 million yuan, which will be the highest in the same period since the company went public in 2019.

Yongjin shares said that the pre-increase in the first half of the year was mainly due to the Guangdong Yongjin "annual processing 350000 tons wide precision stainless steel plate and strip technical transformation project" and Zhejiang Yongjin's "annual processing 195000 tons ultra-thin precision stainless steel plate and strip project", which were put into production in the second half of last year. In addition, the company recognized the non-operating profit and loss of 108.9 million yuan in net income from relocation compensation in area An of Zhejiang headquarters.