On 11 March 2025, CNNC Huayuan Titanium Dioxide Co., Ltd. (CNNC Huayuan) announced its annual report for 2024, showcasing impressive growth across key financial metrics:
- Operating Income: USD 0.96 billion (RMB 6.88 billion), a YoY increase of 38.98%.
- Net Profit: USD 78.75 million (RMB 565.00 million), representing a YoY increase of 34.84%.
- Net Profit Excluding Non-Recurring Gains: USD 60.91 million (RMB 437.00 million), a YoY increase of 35.67%.
- Total Assets: USD 2.71 billion (RMB 19.47 billion), reflecting a YoY increase of 5.05%.
- Net Assets: USD 1.68 billion (RMB 12.06 billion), a YoY increase of 1.42%.
A major contributor to this growth was TiO2 sales, which reached 428,400 tonnes in 2024, marking a 33.44% YoY increase. This contributed USD 0.81 billion (RMB 5.84 billion) in operating income. The company’s diversified portfolio also includes sales of phosphorus ore, yellow phosphorus, ferric phosphate (FePO4), and logistics services, providing stability amid market fluctuations.
Key Highlights from the Report:
- Production Strategy: CNNC Huayuan has pursued an aggressive dual strategy of increasing production capacity and expanding its market reach. The 150,000 t/a new production capacity at Dongfang Titanium in Gansu boosted output by 42.11%, helping the company meet growing global demand.
- Overseas Market Performance: Revenue from international markets remained stable, contributing to 38.58% of the overall revenue. This offset the relatively weak domestic demand in Architectural Coatings, a key market for TiO2.
- Cost Control and Competitive Edge: CNNC Huayuan’s strategic cost control mechanisms provided a strong advantage in a challenging industry environment. Exclusive supply agreements with titanium concentrate suppliers in northwest China helped the company secure USD 89.20/t (RMB 640.00/t) in savings compared to the market rate. Additionally, their sulfuric acid by-product recycling model has created a core cost moat, enabling them to achieve a gross profit margin of 15.03%, outperforming industry peers by 3-5 percentage points.
