Huiyun Titanium Industries' Controlling Shareholder Plans to Reduce Holdings by 3%, Cashing Out Over 100 Million Yuan

On December 23, Huiyun Titanium Industries Co., Ltd. (hereinafter referred to as "the Company") announced the share reduction plan of its controlling shareholder, American Wambo Co., Ltd. (hereinafter referred to as "American Wambo"). According to the announcement, American Wambo plans to reduce no more than 11,920,900 shares of the company's stock, accounting for 3% of the total share capital, through block trading or bidding trading from January 14, 2025, to April 13, 2025. Based on the current share price of 8.65 yuan, this reduction is expected to cash out over 100 million yuan.

This reduction plan marks American Wambo's first share reduction since Huiyun Titanium Industries' listing, and the large scale is expected to significantly impact the company's stock price and market sentiment.

Founded on September 28, 2003, Huiyun Titanium Industries focuses on the research, production, and sales of titanium dioxide products. Its main products include rutile titanium dioxide, anatase titanium dioxide series, as well as ferrous sulfate, sulfuric acid, steam, and iron concentrate, among others. These products are widely used in paints, plastics, papermaking, printing inks, rubber, chemical fibers, ceramics, cosmetics, food, pharmaceuticals, electronics, MEMS, automobiles, and environmental protection industries, enjoying a good sales performance in domestic and international markets.

In 2023, Huiyun Titanium Industries achieved 1.652 billion yuan in revenue, a year-on-year increase of 9.22%; the net profit attributable to the parent company was 41.038 million yuan, showing a substantial year-on-year increase of 189.59%.

American Wambo, as Huiyun Titanium Industries' second-largest shareholder and a concerted actor with the largest shareholder Zhong Zhengguang, currently holds about 79.165 million shares, accounting for 19.79% of the company's total share capital. Excluding shares in the repurchase account, this proportion is 19.92%.

The announcement indicated that this reduction is the first action by American Wambo after the lock-up period expired, primarily based on its own financial planning. After the reduction, American Wambo will hold 67,244,100 shares, continuing to be the company's second-largest shareholder.

Additionally, Huiyun Titanium Industries' financial report for the first three quarters of 2024 reveals a dual decline in revenue and net profit. In the first three quarters of 2024, the company achieved 1.230 billion yuan in revenue, a year-on-year decrease of 3.00%; the net profit attributable to the parent company plummeted to 12.2702 million yuan, a year-on-year decrease of 47.93%. This financial performance not only highlights the intense competition and challenges faced by the company in its core titanium dioxide business but also reflects the difficulties in maintaining profitability.