Summary: Since early 2022, Pangang Vanadium Titanium has overcome negative impact brought by the COVID-19, rising prices of auxiliary products and climbing transport costs through cutting down costs and increasing benefits.

Since the beginning of 2022, Pangang Group Vanadium Titanium Resources Co., Ltd. (Pangang Vanadium Titanium) has deepened the low-cost operation development strategy to increase benefits and improve competitiveness of its products while striving to overcome negative influence of the COVID-19, rising prices of auxiliary products and climbing transport costs.

In Jan.–July 2022, Pangang Vanadium Titanium reduced its costs by USD6.31 million (RMB42.56 million), with a completion rate of 128%. Specifically, the company's expenses of spare parts, freight, and material consumption that were highly related to its production and operation were reduced by around 13% YoY; Pangang Vanadium Titanium's costs of electricity were decreased by USD0.15 million (RMB1.00 million) in the first seven months this years as the company formulated production plans based on staggering power consumption according to the requirements of relevant policies; the company's transportation prices were lowered by 5% compared with the same period last year as it actively communicated with relevant departments and invited logistics companies for several rounds of negotiations.

In terms of production, Pangang Vanadium Titanium tackled key problems of electric furnace sealed smelting technology of its titanium slag production lines and realised full-closed process of three titanium slag electric furnaces in Jan. 2022. The company gradually pushed up the productivity of titanium slag electric furnaces by increasing transmitted power, controlling slag and iron discharging time, increasing and stabilising feeding quantity. In March, the company's monthly output of titanium slag reached around 15,200 tonnes, hitting a new record high. In H1 2022, Pangang Vanadium Titanium maintained normal production of acid dissolved titanium slag and slightly reduced production in July; the company's output of acid dissolved titanium slag was around 10,000 tonnes in July; in Jan.–July, Pangang Vanadium Titanium produced around 96,200 tonnes of acid dissolved titanium slag. The company has still suspended production of high titanium slag so far.

In addition, Pangang Vanadium Titanium maintained normal production of titanium dioxide (TiO₂) in Jan.–June 2022 and it also decreased production of TiO₂ in July. The company produced around 19,500 tonnes of TiO₂ In July; in Jan.–July, the company's TiO₂ output attained around 144,500 tonnes.