Panzhihua Iron and Steel realized a net profit of 1.2 billion yuan

Panzhihua Steel Vanadium Titanium (000629) disclosed the semi annual report of 2019 after hours on August 7. In the first half of 2019, the company realized an operating revenue of 7.259 billion yuan, a year-on-year increase of 7.19%; and realized a net profit of 1.2 billion yuan, a year-on-year increase of 4.31% attributable to shareholders of listed companies. Non net profit deducted was 1.194 billion yuan, up 3.42% year on year. The company said that the increase in operating revenue during the reporting period was mainly due to the increase in prices and sales of main business products and raw and auxiliary materials compared with the same period last year. During the reporting period, the company's production and operation management and control capacity was significantly improved, the production capacity of each production line was further released, and the scale benefit was obvious. During the reporting period, the company has completed 11000 tons of vanadium products (calculated by V2O5), a year-on-year decrease of 10.77%; 115000 tons of titanium dioxide (including 10700 tons of titanium chloride powder), a year-on-year increase of 29.06%; 88300 tons of titanium slag, a year-on-year increase of 4.56%. The company pointed out that in terms of vanadium industry, after the sharp increase of vanadium market price in 2018, some end users use vanadium substitutes, and some stone coal vanadium extraction enterprises resume production to increase the supply.

In the first half of 2019, the overall vanadium market price showed a downward trend. In terms of titanium industry, domestic sulfuric acid titanium dioxide mainly focuses on the upgrading of existing production lines, with little change in capacity scale. Chlorinated titanium dioxide is the future development direction of titanium dioxide industry, with obvious domestic development trend. There are as many as 5-6 new titanium dioxide chloride enterprises to be built, and all of them have certain technical and financial capacity. Accordingly, the company has determined the future development strategy and direction of titanium chloride white, and actively participated in the domestic market development of titanium chloride white. Under the new national environmental protection policy, although the cost of business development has increased, with the promotion of supply side reform, strict environmental protection policy, acceleration of industry integration process and continuous recovery of the terminal industry, large titanium dioxide enterprises have a good momentum of development, which is conducive to the improvement of industry concentration and the construction of an orderly market environment for domestic titanium dioxide development It will also benefit from a better business environment.