Hz info:August 19, 2025 – Longbai Group Co., Ltd. (Stock Code: 002601) released its semi-annual report for 2025. The report shows that Longbai Group achieved revenue of RMB 13.33 billion, a year-on-year decrease of 3.34%. Net profit attributable to shareholders was RMB 1.385 billion, down 19.53% year-on-year, while net profit attributable to shareholders after deducting non-recurring gains and losses was RMB 1.346 billion, a decrease of 19.61%. Basic earnings per share stood at RMB 0.58.

Longbai Group stated that the decline in net profit was primarily due to a drop in the price of titanium dioxide. Despite overall performance pressure, the company demonstrated strong resilience through its diversified business layout.

As a global leader in the titanium industry, Longbai Group leverages its advantages of "integrated industrial chain, large-scale recycling, and low cost" to create synergies across businesses including titanium dioxide, iron-based products, zirconium products, sponge titanium, and new energy materials. The report indicates that titanium dioxide, as the core product, generated revenue of RMB 8.663 billion, accounting for 64.99% of total revenue, though this represented a year-on-year decline of 7.68%. In the first half of 2025, the company produced 682,200 tons of titanium dioxide, a year-on-year increase of 5.02%, and sold 612,000 tons, up 2.08% year-on-year. Domestic sales accounted for 43.71% of total sales, while international sales made up 56.29%. Sales of sulfate-process titanium dioxide reached 427,400 tons, an increase of 2.10% year-on-year, and sales of chloride-process titanium dioxide were 184,600 tons, up 1.99% year-on-year, further strengthening the company’s market share.

Beyond titanium dioxide, other diversified businesses showed growth. Sponge titanium performance was particularly outstanding, with revenue reaching RMB 1.489 billion, an increase of RMB 1.296 billion year-on-year. Production and sales hit record highs in the first half of the year: sponge titanium production reached 36,200 tons, up 9.30% year-on-year, while sales reached 38,700 tons, a surge of 25.51% year-on-year. Revenue from iron-based products, zirconium products, and new energy materials reached RMB 1.166 billion, RMB 514 million, and RMB 527 million, achieving growth of 10.61%, 18.95%, and 27.23%, respectively.

According to Buychemicals Research Institute, China’s titanium dioxide industry faced significant supply-demand imbalances in the first half of 2025. Intensifying supply-demand mismatches and price competition, coupled with anti-dumping measures imposed by key markets such as the European Union and India, led to increased export costs and contraction in traditional major markets. Although domestic producers actively explored emerging markets in South Asia and Southeast Asia, they struggled to fully compensate for the decline in EU and Indian market demand. Currently, Chinese companies are accelerating their shift to other overseas markets, demonstrating strong adaptability and actively seeking to fill gaps left by shrinking international supply.

Against this backdrop, Longbai Group is actively advancing its global strategy, having completed site selection and preliminary due diligence work in multiple countries and regions. The company plans to establish local overseas production to circumvent trade restrictions and enhance global competitiveness.

Additionally, Longbai Group has implemented multiple measures to consolidate its market position. During the reporting period, the company established a Titanium Dioxide Plastics Department dedicated to specialized titanium dioxide sales, while also increasing the utilization rate of chloride-process titanium dioxide production capacity and boosting the proportion of high-end products.

In terms of upstream resource security, the company is accelerating the "Joint Development of Two Mines in the Hongge North Mining Area" and the "Xujiagou Iron Ore Development" projects. Upon completion, annual production capacity of titanium concentrate is expected to reach 2.48 million tons, and iron concentrate capacity is projected to hit 7.6 million tons, further strengthening self-sufficiency in raw materials.

On August 18, Longbai Group, a leading titanium dioxide producer, announced a price increase, effective from the same day. The selling price of all types of titanium dioxide products was raised by RMB 500/ton for domestic customers and USD 70/ton for international customers.

During the reporting period, in June 2025, Longbai Group distributed its first-quarter equity benefits for 2025, granting a cash dividend of RMB 5 per share (pre-tax) to all shareholders, with a total cash distribution of RMB 1.186 billion. Since its listing, the company has cumulatively distributed over RMB 19.3 billion in dividends, delivering tangible returns to investors.