On August 17, Pangang Group Vanadium and Titanium Resources Co., Ltd. (hereinafter referred to as “Pangang Vanadium Titanium”, 000629) issued the semi annual report for 2020. In the first half of this year, the operating income of Pangang Vanadium Titanium was 5.001 billion yuan, a decrease of 31.10% compared with the same period of last year; the net profit attributable to shareholders of listed companies was 85.5765 million yuan, a year-on-year decrease of 92.87%; the basic earnings per share was 0.0100 yuan, a year-on-year decrease of 92.84%.
During the reporting period, Pangang Vanadium Titanium produced 11900 tons of vanadium products (calculated by V2O5), with a year-on-year increase of 8.18%; 114200 tons of titanium dioxide (including 5685 tons of titanium dioxide contains chlorination), a year-on-year decrease of 0.7%; and 106100 tons of titanium slag, with a year-on-year increase of 20.16%.
As for the performance, the report mentioned that the decrease of operating income and net profit attributable to shareholders of listed companies was mainly due to “the price of vanadium and titanium products decreased compared with the same period of last year”.
According to the analysis of Pangang Vanadium Titanium, the price of vanadium products rose rapidly in 2018, which stimulated the enterprises that stopped production and stone coal vanadium extraction enterprises to resume production one after another, and the market supply increased rapidly. By 2019, the domestic vanadium products market showed a more obvious oversupply state, and the price of vanadium products declined rapidly compared with that in 2018, which restrained the momentum of vanadium extraction enterprises to further resume production and expand production. However, the global outbreak of the COVID-19 has had a negative impact on the world economy including China, as well as the improvement of supply and demand of vanadium products.
In terms of titanium industry, based on the analysis of Pangang Vanadium Titanium that the domestic sulfuric acid process titanium dioxide is mainly based on the upgrading of existing production lines, and the capacity scale has little change. Chlorination process titanium dioxide is the future development direction of titanium dioxide industry, and the domestic development trend is obvious. There are as many as 5-6 chlorinated titanium dioxide enterprises under construction or to be built, and they all have certain technical and capital capacity. “The company has determined the future development strategy and direction of chlorinated
titanium dioxide, and actively participated in the domestic titanium dioxide market development.” According to the report, with the promotion of supply side reform, the acceleration of industry integration process and the continuous recovery of the terminal industry, large titanium dioxide enterprises have a good development momentum, which is conducive to the improvement of industry concentration and the construction of a market environment for orderly development of domestic titanium dioxide. The company will also benefit from the good business environment.
Pangang Vanadium Titanium was founded on March 27, 1993 and listed on Shenzhen Stock Exchange in November 1996. Its headquarters is located in Panzhihua City, Sichuan Province, which is known as the “capital of vanadium and titanium”. The actual controller is AnSteel Group, a central iron and steel enterprise. During the reporting period, the company’s main business includes vanadium, titanium and electricity. Among which, vanadium and titanium plate are the strategic key business of the company, mainly including the production, sales, technical research and development and application development of vanadium products, titanium slag and titanium dioxide, and the main products include vanadium oxide, ferrovanadium, VN alloy, titanium dioxide by sulfuric acid method, titanium dioxide by chloride process, titanium slag by chlorination, etc. Pangang Vanadium Titanium is the largest vanadium production enterprise in China, and also has an important position in the domestic titanium field.
According to the report, up to now, Pangang Vanadium Titanium has a production capacity of 22000 tons / year of vanadium products (calculated by V2O5), 220000 tons / year of titanium dioxide produced by sulfuric acid process, 15000 tons / year of titanium dioxide by chlorination process, and 240000 tons / year of acid soluble titanium slag (including rental capacity).