Source: Baidu

Key figures were:

• Revenue: USD140.77 million (RMB933.42 million), up USD1.21 million (RMB8.03 million), or 0.87%, YoY

• Total profit: USD1.98 million (RMB13.15 million), down USD3.25 million (RMB21.54 million), or 62.09%, YoY

• Net profit: USD1.60 million (RMB10.58 million), down USD1.50 million (RMB9.97 million), or 48.51%, YoY

According to the report, in H1 2016, CNNC TD produced 104,800 tonnes (YoY up of 21.30%) of TiO2 and sold 83,300 tonnes (same level as in H1 2015); it also sold 10,800 tonnes of iron oxide, up 11.34% YoY.

“During the reporting period, our TiO2 price kept climbing and our sales volume remained stable and showed an upward trend,” CNNC TD commented in regard to their profits, “In addition, our board of directors, following a development strategy of exploring markets, enhancing management and cutting costs, has been continuously improving marketing, carrying out scientific research and development, accelerating project construction and reducing sales costs.”

In H1 2016, the market price of TiO2 kept increasing under the influence of the recovering real estate market and supply side reform. However, it was still lower than in H1 2015. According to CCM’s research, the average market price of rutile TiO2 in H1 2016 stood at USD1,526/t, down 10.76% YoY.

Based on this, it is understandable that CNNC TD recorded a YoY fall in net profit. Notably, it managed to maintain stable production and sustain stable revenue against depressed market conditions, reflecting its outstanding overall strength among other companies. CCM believes that it will have a bright future considering the advantages it holds in terms of its production technology, business layout and circular economy.

1. Production technology

CNNC TD has built long-term partnerships with Ti-cons Dr. Jendro Und Partner Management Consultants, Buhier AG, the Department of Chemistry of Tsinghua University, and the Institute of Process Engineering of the Chinese Academy of Sciences. It maintains strict quality control over its rutile TiO2 products and continues to explore new applications for them in the coating, plastics and color concentrate markets. In addition, it also provides diversified services according to clients’ requirements.

2. Business layout

CNNC TD has further optimized its business layout by making Jiangsu Province the company's purchase center, Gansu, Anhui and Jiangsu provinces their production bases, and Shanghai their sales center. In this way, the company expects to utilize the logistics, information, and market advantages that Jiangsu Province and Shanghai offer, as well as the labor and resource advantages which Gansu and Anhui provinces provide. Such a multi-regional distribution has significantly helped CNNC TD to reduce its production costs.

Meanwhile, in April 2016, CNNC TD set up a subsidiary named CHTI America Inc. in the US. to further explore the global market.

3. Circular economy production mode

CNNC TD has outstanding circular production lines:

• Waste acid generated during TiO2 production is recycled after enrichment

• The large amount of afterheat generated during the production of sulphuric acid (by sulphur) provides heat for TiO2 production

• Waste slag generated during TiO2 production is used as a raw material for cement after processing

In addition, at the end of April 2016, CNNC TD established a wholly-owned subsidiary named Baiyin Bojo New Material Co., Ltd., which will produce iron oxide pigments using the large quantity of ferrous sulfate that Gansu Orient Titanium Co., Ltd. (another subsidiary) generates during the production of TiO2, hoping to reap profits and protect the environment at the same time.

This article comes from Titanium Dioxide China Monthly Report 1608, CCM

About CCM:

CCM is the leading market intelligence provider for China’s agriculture, chemicals, food & ingredients and life science markets. Founded in 2001, CCM offers a range of data and content solutions, from price and trade data to industry newsletters and customized market research reports. Our clients include Monsanto, DuPont, Shell, Bayer, and Syngenta. CCM is a brand of Kcomber Inc.

For more information about CCM, please visit www.cnchemicals.com or get in touch with us directly by emailing econtact@cnchemicals.com or calling +86-20-37616606.

Tag: Titanium  TiO2

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