Tinergy Chemical Co.,Ltd.
钛能化学
002145
Shenzhen Stock Exchange
Company Profile
1. First-mover advantage The company was formerly known as the Titanium D Plant of Factory 404 of China National Nuclear Corporation, located in the largest nuclear production and research base in China. In the late 1980, based on the national development strategy of transforming military industry into civilian use, the company adjusted its industrial structure, introduced and built the titanium dioxide project. After years of, absorption and innovation, the company has accumulated significant technological expertise and technological innovation capability, and is known as the "West Point" of the titanium dioxide industry. By production processes, improving production technology, and leveraging the company's overall synergistic production, the company has formed economies of scale, significantly reducing the production cost its main products. With superior product quality and lower production costs, the company has rapidly developed in recent years and formed the following first-mover advantages: (1 When competitors began to invest in the titanium dioxide industry, the company had already reduced its production costs and enhanced its competitiveness in terms of product cost performance through large-scale and process control; (2) The company formed titanium dioxide scale production and sales earlier, and after years of market development and brand building, it has established a good reputation and corporate image among many high-quality domestic and foreign enterprises in the downstream industry, created a stable sales channel, and ensured the company's production and sales. 2. Raw material advantage The main raw materials of the company's main product, rutile titanium dioxide, are titanium concentrate and sulfuric acid which account for more than 60% of the production cost. In terms of titanium concentrate: the company relies on its unique production process technology and has reached a-term exclusive cooperation agreement with a titanium concentrate producer in the northwest region. During the reporting period, this producer provided the company with nearly 320,00 tons of titanium concentrate supply, which has a cost advantage of nearly 640 yuan per ton (including tax) compared to the mainstream domestic titanium concentrate from outside. In terms of sulfuric acid: the main source of sulfuric acid for the company's main production base, Dongfang Titanium Industry, the by-product of the smelting products of enterprises within its industrial park, which not only achieves the local digestion and conversion of hazardous chemicals within the industrial park also significantly reduces the purchase cost of sulfuric acid raw materials. 3. Brand and market advantages The company's wholly-owned subsidiaries, Jining Titanium White, Dongfang Titanium Industry, and Xintianxin Chemical Industry, are national high-tech enterprises. Jinxing Titanium White one of the top 100 private enterprises in Anhui Province and is a registered institution of the Anhui Academy of Engineering. The Taiohua andxing trademarks owned by the company have been rated as famous trademarks in Gansu Province and Anhui Province, respectively, and have a good reputation and high in the industry and among customers. The company's products have entered the titanium white powder market for twenty years. Compared with other domestic peers, the company' main products entered the domestic and international markets earlier, and have a distinct first-mover advantage. After years of efforts, the company's products have been exported many countries and regions, and the main domestic and foreign customers are all leaders in their respective industries. The company has a good reputation among customers through long-term quality supply, and service guarantees. Recently, the final ruling of the EU anti-dumping investigation was announced, and anti-dumping duties were officially levied domestic titanium white powder products other than inkjet: the company's subsidiary Jinxing Titanium White 0.25 euros/kg, other enterprises .64 euros/kg or 0.74 euros/kg. The lower anti-dumping tax amount applicable only to Jinxing Titanium White will a unique advantage for the company's exports in the region. At the same time, in terms of going global, the company has reached an intention of long- cooperation with several large overseas customers based on its advantages of continuous supply and stable product quality. Relying on the long-term stable strategic cooperative relationship with large downstream, several of the company's customized products have become the first choice of the leading enterprises in the decorative base paper industry. During the reporting period, under the of a phased decline in domestic architectural coating demand, the proportion of domestic and foreign trade sales and the distribution ratio of downstream customers' industries are an important basis for company to achieve good operating performance. In the future, the company will further expand overseas market business by leveraging brand and market advantages. 4. Circular economy During the reporting period, the company implemented the "Sulfur-Phosphorus-Iron-Titanium-Lithium" coupling circular industry according to its own strategic development planning and the development trend of related industries (see "Management Discussion and Analysis" in "Section 11. Prospects for the's Future Development" for details), which coupled the waste by-products (spent acid, ferrous sulfate, etc.) generated in the production of the company's main products with the phosphorus chemical industry, not only reducing costs and increasing efficiency but also achieving clean production of sulfate titanium dioxide, laying solid foundation for the company to achieve sustainable development. 5. Technology, scientific research, and innovation advantages With the purpose of "accelerating the development the company's new productive forces and solidly promoting the high-quality development of the company," the company's scientific and technological innovation work relies on multiple innovation platforms and resources such as the provincial enterprise technology center, collaborative innovation base, and provincial titanium white powder green manufacturing and resource comprehensive utilization technology innovation center, adheres the main position of enterprise scientific and technological innovation and the innovation-driven development strategy, continuously increases capital investment in product research and development, and continuously exerts efforts new product research and development, industrial transformation, and industrial chain extension, making practical contributions to the company's development of high-value-added products and cost reduction efficiency improvement. 6、Multi-regional industrial layout advantage The Company makes full use of the favorable production elements in various parts of the country, releasing the production capacity of production bases in Gansu and Guizhou through methods such as reconstruction and expansion, making comprehensive use of the human resources, energy consumption resource advantages of Gansu, Guizhou and other places, giving full play to the logistics, information and market advantages of Jiangsu, Guangzhou other places, constantly improving the yield and quality of products, playing the scale effect, reducing the production cost of products, and enhancing the competitiveness of the company. The subsidiary of the Company, Zetong Logistics, relies on its own dedicated railway line to build a railway branch line for strategic resources in the Panzhihua, further reduce the logistics cost of resource procurement, improve the logistics transport capacity, ensure the stable supply of the main raw material titanium concentrate for the company's main, optimize the logistics environment in the Panzhihua area and ease local traffic safety risks.
Full description
In 2023, the company acquired a phosphate mining and processing enterprise with reserve of more than 10 million tons and a yellow phosphorus production enterprise, accelerating the construction of a green circular industry economy investment project. By this time, has formed a leading capacity scale in the industry for titanium dioxide, phosphate ore, yellow phosphorus, and lithium iron phosphate, new energy chemical materials. Among: titanium dioxide has a current capacity of nearly 550,000 tons/year, with a planned capacity of 700,000 tons/year; phosphate ore has a current capacity of 500,000 tons/year; yellow phosphorus has a current capacity of 10,000 tons/year; lithium iron phosphate has a current capacity of 100,000 tons/year, with a planned of 500,000 tons/year. 1. Main Products and Uses of the Company During the reporting period, the company' sources of revenue came from the sales of titanium dioxide, ferrous sulfate, phosphate ore, yellow phosphorus, lithium iron phosphate, and logistics transportation services with the sales of titanium dioxide products being the main source of the company's revenue. Titanium dioxide, also known as titanium dioxide, has the chemical formula Ti2 and is the best white pigment in the world, accounting for about 80% of the total use of white pigments. The stable physical and chemical and excellent optical properties of titanium dioxide determine its superior pigment properties, including excellent hiding power, tinting strength, whiteness, and weather resistance, making it an inorganic chemical product that is widely used in coatings, plastics, paper, printing ink, fibers, and rubber, with terminal products used in real estate, automotive, decorative paper, and other fast-growing industries. In recent years, with the development of technology, the consumption of titanium dioxide has expanded to new energy, highend equipment, environmental protection, medical, and other fields, and its application prospects are very broad. Titanium dioxide can be divided into pigment grade and non-igment grade according to its use. Pigment grade titanium dioxide has the best performance and the widest range of uses, and non-pigment grade titanium is mainly used in welding rods, enamel, and metallurgical industry, etc. Among pigment grade titanium dioxide, it can be divided into two types according to crystal form: rutile (Type A) and anatase (Type R). Among them, rutile titanium dioxide has better hiding power and weather, and its photochemical stability and luster are both better than rutile titanium dioxide, which is the best variety of white pigment and has greater practical value The company's main products are all rutile titanium dioxide, and its sales revenue accounts for more than 84% of the company's total sales in 2024. 2. Main Production Process of Products The production process of titanium dioxide by the sulphuric acid method mainly uses titanium as raw material, and uses sulphuric acid to decompose titanium in titanium concentrate into TiOSO4 solution, and then removes insoluble impurities from titanium by precipitation and filtration, and then removes FeSO4·7H2O from titanium solution by crystallization and solid-liquid separation, and then is concentrated andlyzed with hot water to obtain slurry of titanic acid, and then goes through washing, bleaching and other processes to remove soluble sulfates and heavy impurities, and then goes through crystallization conversion assistant pressure filtration, and then goes through calcination dehydration, desulfurization, conversion and other processes to obtainutile or anatase titanium dioxide crude products, and titanium dioxide crude products are obtained by dry grinding. To produce higher-grade rutile products, it also necessary to turn the crude products into slurry, and then go through classification, grinding, inorganic surface treatment, washing, drying, organic surface treatment, gas and other processes to obtain rutile titanium dioxide finished products that meet the application requirements. 3、The upstream and downstream industrial chains of main products ①Upstream: As a white pigment with best performance, rutile titanium dioxide is produced from the core raw material titanium concentrate. China is one of the major titanium resource countries in the world with its reserves among the top in the world. As of 2021, China's titanium ore reserves have reached 884 million tons. The company' main business, sulfuric acid process titanium dioxide, has a per-ton demand for raw material titanium concentrate of about 2.4-2.5 tons, the domestic titanium dioxide industry has a demand for titanium concentrate of more than 12 million tons per year. Although there are many titanium raw material production enterprises in China there are few enterprises that can rank among the top in the world in terms of production and quality, which can not meet the demand of downstream domestic enterprises for titanium raw. Every year, a large number of high-quality titanium ore is still imported from Australia and other countries. In 2023, the domestic production of concentrate was about 7.5 million tons, and the import of titanium concentrate exceeded 4.2 million tons. ②Downstream: It is mainly used coatings, plastics, paper making, printing ink, chemical fibers, rubber and other fields, and the terminal products are used in industries such as real estate, automobile, decorative paper, etc., which are developing rapidly. 4、Business model The company has an independent and complete research and development, procurement, production and system, and carries out production and business activities independently according to its own strength, macroeconomic situation and market changes. During the reporting period, the company continued to carry the management philosophy of "sales based on production, cost control is the core, and product quality must be guaranteed", relying on the production bases of Jiuqu, Gansu, Baishu, Gansu, Ma'anshan, Anhui, Kaiyang, Guizhou and Panzhihua Sichuan, etc., and allocated resources reasonably, integrated procurement channels, expanded export sales, increased research and development efforts, played its brand advantages, and improved market. It has achieved good economic benefits. 5、Development strategy Building a green circular industry to achieve transformation and upgrading and help achieve the "double carbon". Under the new development pattern of the domestic and international economic "domestic circulation as the main body and domestic and international circulation promoting each other", the company focuses the guiding principles and key points of the "14th Five-Year Plan", adheres to the development strategy of internal growth and external expansion, focuses on four major business segments of "resources, chemicals, new materials and new energy", arranges the upstream and downstream industries of the industry chain as a whole, and a green circular industry economy of "sulfur-phosphorus-iron-titanium-lithium". Promote the company's green low-carbon transformation, and contribute to the realization of the dual carbon strategy goal.