Key takeaway

As a leader in the titanium dioxide industry, the company currently has 1.66 million tons of titanium dioxide capacity and was an early achiever of mass production using both mainstream processes, the sulfate and chloride routes. Looking ahead, to counter the impact of overseas anti-dumping duties and the increasingly intense domestic competition, the company is raising its self-sufficiency rate for upstream titanium ore while accelerating its overseas expansion. For titanium ore, the company is pushing forward with the "Hongge North Mining Area Two-Mine Joint Development" and the "Xujiagou Iron Ore Development" projects. For overseas expansion, the company acquired Venator UK assets in 2025 and is advancing the construction of a production base in Malaysia.

Event

The company released its 2026 interim report. In 1H26, revenue reached RMB14.422bn, up 8.10% YoY; net profit attributable to shareholders of the parent company was RMB844mn, down 39.08% YoY; and net profit attributable to shareholders of the parent company excluding non-recurring gains and losses was RMB772mn, down 42.67% YoY. In 2Q26, revenue reached RMB7.264bn, up 15.63% YoY and 1.48% QoQ; net profit attributable to shareholders of the parent company was RMB657mn, down 6.05% YoY and up 251.34% QoQ; and net profit attributable to shareholders of the parent company excluding non-recurring gains and losses was RMB596mn, down 13.38% YoY and up 238.96% QoQ.

Risks:

(1) Sharp fluctuations in raw material prices: Significant raw material price volatility can affect price spreads and earnings stability, such as the recent sulfuric acid price hike, thereby impacting the company's profitability;

(2) Changes in the industry competition landscape: The rapid release of new capacity may lead to partial overcapacity in the titanium dioxide sector, intensifying industry competition and squeezing profit margins;

(3) Macroeconomic fluctuations and global economic downturn: Downstream demand for titanium dioxide is broad and highly correlated with the macroeconomy, and an economic downturn may affect product demand;

(4) Uncertainty in export demand due to potential trade policy changes such as tariffs and anti-dumping duties: China has a large export volume of titanium dioxide, and trade barriers imposed overseas may affect export demand.