Net Profit Fell by More than 60% Year-on-year! What Happened to the Titanium Dioxide Industry?​

Recently, Jinpu Titanium Industry (hereinafter referred to as the "Company") released the "2022 Semi-Annual Report". During the reporting period, the revenue was 1.375 billion yuan, an increase of 11.02% year-on-year; the net profit attributable to the parent was 42 million yuan, a year-on-year decrease of 62.69%. ; Realized a net profit of 34 million yuan after deducting non-return to the parent, a year-on-year decrease of 67.36%. At the same time, during the reporting period, both basic earnings per share and diluted earnings per share fell sharply by 62.69% year-on-year.

In terms of gross profit margin, from the product point of view, the three major products of Jinpu Titanium Industry, namely rutile titanium dioxide, anatase titanium dioxide, and commercial factoring, have experienced a decline in the gross profit margins to varying degrees, that is, the gross profit margins are 11.39% and 15.36% respectively. , 49.15%, down 9.22%, 6.83%, and 50.85% year-on-year respectively. It should be noted that during the reporting period, both domestic and overseas gross profit margins of Jinpu Titanium declined year-on-year, that is, domestic and overseas gross profit margins were 13.78% and 11.96%, respectively, down 9.76% and 6.43% year-on-year.

Regarding the decline in performance, Jinpu Titanium Industry once stated in the semi-annual report forecast that first, the market prices of the main raw materials of titanium dioxide such as sulfuric acid and sulfur continued to rise during the reporting period. The year-on-year increase in costs resulted in a decline in the gross profit margin and profitability of the products. Second, during the reporting period, due to the impact of the epidemic, the company's main production areas were upgraded with control measures, resulting in limited production capacity and a year-on-year decrease of about 3,000 tons of titanium dioxide.

In addition, a number of titanium dioxide companies have recently released performance reports.

Longbai Group (002601) released the report for the first half of 2022. In the first half of 2022, the company achieved operating income of 12.4 billion yuan, a year-on-year increase of 26.04%; net profit attributable to shareholders of listed companies was 2.266 billion yuan, a year-on-year decrease of 6.93%.

CNNC Titanium Dioxide (002145.SZ) released its 2022 semi-annual report, achieving an operating income of 2.875 billion yuan, a year-on-year increase of 10.15%. The net profit attributable to shareholders of listed companies was 537 million yuan, a year-on-year decrease of 18.23%. The net profit attributable to shareholders of listed companies after deducting non-recurring gains and losses was 519 million yuan, a year-on-year decrease of 18.37%. Basic earnings per share were 0.1807 yuan per share.

Ananda (002136) released the 2022 semi-annual report, the company's operating income from January to June 2022 was 1.355 billion yuan, a year-on-year increase of 48.86%, and the net profit attributable to shareholders of the listed company was 128 million yuan, a year-on-year increase of 48.52%. The stock income was 0.5945 yuan.

Huiyun Titanium Industry (300891.SZ) released its 2022 semi-annual report. The company's operating income in the first half of the year was 810 million yuan, a year-on-year increase of 11.83%. The net profit attributable to shareholders of listed companies was 58.8541 million yuan, a year-on-year decrease of 45.71%. The net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses was 61.6016 million yuan, a year-on-year decrease of 44.60%. Basic earnings per share were 0.15 yuan.