Kuncai Technology Reports 12% Net Profit Growth in First Half of 2025, Strengthens Its Leading Position in the Pigment Industry

Hz info:August 26, 2025 – Fujian Kuncai Material Technology Co., Ltd. (603826) released its semi-annual report for 2025. The report shows that Kuncai Technology achieved operating revenue of RMB 572 million, a year-on-year increase of 7.61%; net profit attributable to shareholders of RMB 49.4118 million, a year-on-year increase of 11.93%; and net profit attributable to shareholders after deducting non-recurring gains and losses of RMB 46.1173 million, a year-on-year increase of 16.09%. Basic earnings per share were RMB 0.0754. Overall performance demonstrated steady growth.

In terms of specific products, pearlescent pigments, as the core business, achieved operating revenue of RMB 441 million; titanium dioxide generated operating revenue of RMB 113 million; and iron oxide achieved operating revenue of RMB 9.2065 million. Sales revenue from businesses such as titanium dioxide, iron oxide, and pearlescent pigments all showed growth.

Kuncai Technology pointed out that although overall revenue from titanium dioxide, iron oxide, and pearlescent pigment businesses increased, the overall decline in the market price of titanium dioxide led to a year-on-year decrease of RMB 12.704 million in total gross profit from sales. Additionally, due to the growth in sales revenue, corresponding taxes and surcharges increased by RMB 1.477 million year-on-year. Impairment losses on inventory assets, affected by the market price of titanium dioxide, increased by RMB 4.0076 million year-on-year. The company performed positively in cost control, with financial expenses significantly reduced by RMB 13.2602 million year-on-year, mainly due to a decrease in interest expenses of RMB 4.8213 million and an increase in exchange gains of RMB 7.0739 million. Due to the impact of temporary differences in deferred income tax, income tax expenses decreased by RMB 9.3383 million year-on-year.

Considering the above factors, the total profit for the period decreased by RMB 4.0761 million year-on-year, but net profit achieved a year-on-year increase of RMB 5.2622 million, demonstrating the company's operational resilience and profitability in a complex market environment.

The global pearlescent pigment industry is undergoing profound changes. With international major producers such as Merck, BASF, and CQV successively selling their pearlescent pigment businesses, Kuncai Technology has become a key driver of the industry's sustained and stable growth, gradually establishing its position as a global leader in the pearlescent pigment industry.

In terms of core competitiveness, the company's wholly-owned subsidiary, Zhengtai New Materials, has achieved independent production of key raw materials such as titanium oxychloride and ferric trichloride, building a stable and controllable supply chain system that lays a solid foundation for the company's medium- to long-term development. This capability not only significantly enhances the security of raw material supply but also provides strong support for subsequent technological iterations and business expansion.

Technologically, the company relies on the world's first hydrochloric acid extraction process for titanium dioxide, continuously advancing capacity expansion and industrial chain extension. Its first extraction-process chlorination titanium dioxide production line has achieved large-scale production and entered the international market, with products recognized by leading international customers such as DuPont and PPG, and incorporated into the supply chains of companies like BYD and Tesla. Against the backdrop of increasingly stringent environmental policies in Europe and the United States, the company's green process advantages have become further highlighted.

In the context of carbon neutrality, the company actively practices low-carbon development理念 (concepts), establishing a powder coating application center to create an integrated platform for "R&D testing-process optimization-application innovation," promoting the development of green coating. During the reporting period, the company's core product, pearlescent pigments, underwent a full-lifecycle carbon footprint verification by SGS, making it the first enterprise in the global pearlescent pigment industry to publicly disclose product carbon footprint information.

In terms of market and brand building, Kuncai Technology actively expands its global influence by participating in important domestic and international industry exhibitions such as the European Coatings Show, Japan CITE Cosmetic Ingredients Exhibition, China PCHi, and the Cross-Strait Innovation Project Achievements Transaction Fair, comprehensively showcasing innovative products and technological strength. Simultaneously, the company leverages new media channels such as official public accounts and video science popularization to multi-dimensionally communicate the concepts of green manufacturing and low-carbon applications, effectively enhancing brand recognition and reputation in the international market.

In the future, Kuncai Technology plans to build an annual production capacity of 800,000 tons of high-end titanium dioxide and 800,000 tons of high-end iron oxide, aiming to become a globally competitive comprehensive high-end material supplier. By continuously enriching its product matrix and extending its industrial chain, the company can widely cover various levels of demand in multiple downstream application areas, providing customers with more comprehensive products and services, significantly enhancing cooperation stickiness with distributors and end-users, and supporting the continuous improvement of market share.

Kuncai Technology will continue to deepen its "Pearlescent Pigments + Chlorination Titanium Dioxide" dual-drive strategy, consolidating its industry leadership by expanding application scenarios and strengthening technological barriers. The company is accelerating the diversification of its product series, covering traditional fields such as coatings, plastics, textiles, and electronics, while deeply deploying emerging scenarios such as low-altitude economy, humanoid robots, and 3D printing materials. Relying on its self-developed hydrochloric acid extraction process, the company continues to invest in the research and innovation of titanium- and iron-based inorganic materials and oxides in areas such as daily chemicals and functional materials, continuously enhancing product added value.

Additionally, in May 2025, the company completed adjustments to its director positions, removing Xie Chao as director and electing Xie Jin as the new director. At the same time, to comply with the newly revised "Company Law," the company canceled the board of supervisors, transferring its authority to the board's audit committee, further optimizing the corporate governance structure and improving decision-making efficiency and compliance management levels.