惠云钛业(300891) - 2025 Q2 - 季度财报

Section I Important Notice, Table of Contents, and Definitions Important Notice The company's board of directors, supervisory board, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report content - The company's board of directors, supervisory board, and senior management commit to the truthfulness, accuracy, and completeness of the semi-annual report content[3] - Forward-looking statements regarding future development strategies and operating plans in this report are subject to uncertainties and do not constitute earnings forecasts or substantive commitments[3] - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital[4] Table of Contents This report's clear table of contents lists eight main chapters covering company profile, financial indicators, management discussion and analysis, corporate governance, significant events, share changes, bond information, and financial reports - The report comprises eight main chapters, covering company operations, financials, governance, and significant matters[6] Definitions This section provides definitions for common terms used in the report, ensuring accurate understanding of its content - Clearly defines the full and abbreviated names of the company and its subsidiaries, such as “Guangdong Huiyun Titanium Industry Co., Ltd.” abbreviated as “Huiyun Titanium Industry”[10] - Defines key time points such as the reporting period, prior year period, and end of the reporting period[10] - Explains professional terms for main products like “titanium dioxide” and its types (anatase, rutile) and production methods (sulfuric acid process)[10] Section II Company Profile and Key Financial Indicators 1. Company Profile The company's stock abbreviation is Huiyun Titanium Industry, stock code 300891, listed on the Shenzhen Stock Exchange, with He Mingchuan as the legal representative Company Basic Information | Indicator | Content | | :--- | :--- | | Stock Abbreviation | Huiyun Titanium Industry | | Stock Code | 300891 | | Listed Stock Exchange | Shenzhen Stock Exchange | | Chinese Name | Guangdong Huiyun Titanium Industry Co., Ltd. | | Legal Representative | He Mingchuan | 2. Contact Person and Information The company's Board Secretary is Zhong Yi, and Securities Affairs Representative is Zhou Jinlan, both located in Liudu Town, Yun'an District, Yunfu City, with provided contact details Contact Information | Position | Name | Contact Address | Phone | Fax | Email | | :--- | :--- | :--- | :--- | :--- | :--- | | Board Secretary | Zhong Yi | Liudu Town, Yun'an District, Yunfu City | 0766-8495208 | 0766-8495209 | dsh@gdtitanium.com | | Securities Affairs Representative | Zhou Jinlan | Liudu Town, Yun'an District, Yunfu City | 0766-8495208 | 0766-8495209 | dsh@gdtitanium.com | 3. Other Information During the reporting period, there were no changes in the company's contact information, information disclosure, or registration, with details available in the 2024 annual report - The company's registered address, office address, website, email, and other contact information remained unchanged during the reporting period[15] - Information disclosure and document storage locations remained unchanged during the reporting period[16] - The company's registration status remained unchanged during the reporting period[17] 4. Key Accounting Data and Financial Indicators In the first half of 2025, the company's operating revenue increased by 5.18% to 834.87 million Yuan, but net profit attributable to shareholders significantly decreased by 73.17% to 5.10 million Yuan, while net cash flow from operating activities improved from negative to positive, and total assets and net assets attributable to shareholders both grew Key Accounting Data and Financial Indicators (Year-on-Year) | Indicator | Current Reporting Period (Yuan) | Prior Year Period (Yuan) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 834,874,688.45 | 793,749,839.61 | 5.18% | | Net Profit Attributable to Shareholders of Listed Company | 5,098,385.24 | 19,005,652.38 | -73.17% | | Net Profit Attributable to Shareholders of Listed Company (Excluding Non-Recurring Gains and Losses) | 2,607,719.90 | 18,988,159.86 | -86.27% | | Net Cash Flow from Operating Activities | 11,275,557.08 | -116,716,161.80 | 109.66% | | Basic Earnings Per Share (Yuan/share) | 0.0128 | 0.0476 | -73.11% | | Diluted Earnings Per Share (Yuan/share) | 0.0128 | 0.0476 | -73.11% | | Weighted Average Return on Net Assets | 0.38% | 1.37% | -0.99% | Key Accounting Data and Financial Indicators (Period-End) | Indicator | End of Current Reporting Period (Yuan) | End of Prior Year (Yuan) | Change from End of Prior Year | | :--- | :--- | :--- | :--- | | Total Assets | 2,940,897,672.03 | 2,785,312,506.21 | 5.59% | | Net Assets Attributable to Shareholders of Listed Company | 1,350,392,020.00 | 1,346,922,513.79 | 0.26% | 5. Differences in Accounting Data under Domestic and Overseas Accounting Standards During the reporting period, the company had no differences in net profit and net assets disclosed under international or overseas accounting standards compared to Chinese accounting standards - The company had no differences in accounting data under domestic and overseas accounting standards during the reporting period[19][20] 6. Non-Recurring Gains and Losses and Amounts During the reporting period, the company's total non-recurring gains and losses amounted to 2.49 million Yuan, primarily comprising government subsidies, entrusted operation income, and gains/losses from disposal of non-current assets Non-Recurring Gains and Losses and Amounts | Item | Amount (Yuan) | | :--- | :--- | | Gains/losses from disposal of non-current assets | -56,627.68 | | Government subsidies recognized in current profit/loss | 3,282,823.83 | | Gains/losses from changes in fair value of financial assets and liabilities, and disposal of financial assets and liabilities, excluding effective hedge accounting related to normal business operations | -505,132.27 | | Entrusted operation income | 646,477.99 | | Other non-operating income and expenses apart from the above | -422,165.73 | | Other items that meet the definition of non-recurring gains and losses | 59,019.75 | | Less: Income tax impact | 513,730.55 | | Total | 2,490,665.34 | Section III Management Discussion and Analysis 1. Company's Main Business Activities During the Reporting Period The company primarily engages in the R&D, production, and sales of titanium dioxide products, widely used in plastics, coatings, rubber, and other fields; in the first half of 2025, despite weaker-than-expected market demand and declining prices, the company achieved growth in production and sales through technological advancements, cost optimization, and differentiated strategies (I) Industry Development and Trends In the first half of 2025, titanium dioxide market demand fell short of expectations, intensifying competition, with production volume remaining similar to the prior year, while domestic apparent demand increased but exports decreased, and long-term demand growth is expected from new applications despite short-term price declines - In the first half of 2025, titanium dioxide market demand was weaker than expected, competition intensified, and production volume was approximately 2.39 million tons, similar to the prior year[26] - From January to May 2025, domestic apparent demand for titanium dioxide was 1.2819 million tons, a year-on-year increase of 43,700 tons; from January to June, China's titanium dioxide exports totaled approximately 916,600 tons, a decrease of 56,000 tons compared to the prior year[26] - In the long term, demand for titanium dioxide in emerging application fields such as photovoltaics, new energy, and catalysis will continue to grow, but short-term market prices are trending downwards[26][27][30] (II) Company's Main Business, Products, and Uses The company is a high-tech enterprise primarily engaged in the R&D, production, and sales of titanium dioxide products, including rutile and anatase types, along with by-products such as sulfuric acid, steam, and iron concentrate, with titanium dioxide widely used as a white pigment across various industries - The company primarily engages in the R&D, production, and sales of titanium dioxide products, with main products being rutile and anatase titanium dioxide series and related by-products[31] - The company is equipped with a sulfuric acid production line, with main products being sulfuric acid, steam, and iron concentrate[31] - Titanium dioxide is widely used in plastics, coatings, rubber, chemical fibers, ceramics, food, medicine, cosmetics, new building materials, photovoltaics, electronics, micro-electromechanical, automotive, new energy, environmental protection, and catalysis fields[31] (III) Main Business Model The company's profitability primarily stems from the sale of titanium dioxide and by-products, forming a "sulfur-titanium-iron-calcium" circular economy industrial chain, with procurement mainly through bulk purchases, large-scale continuous production, a combination of direct and distribution sales, and dedicated R&D for technological innovation - Profitability Model: Primarily generates revenue through the sale of titanium dioxide products, sulfuric acid, ferrous sulfate, and other by-products, benefiting from the “sulfur-titanium-iron-calcium” circular economy industrial chain[32] - Procurement Model: Primarily adopts bulk purchasing, tracking and screening suppliers for titanium concentrate and sulfuric acid, formulating plans, and implementing procurement, generally selecting about 3 suppliers for each material[32][33] - Production Model: Organizes production in a large-scale continuous manner based on production plans combined with actual production and sales conditions[33] - Sales Model: Adopts a combination of direct sales and distribution, with overseas sales placing procurement demands through orders[33] - R&D Model: Has a dedicated R&D department responsible for technology development planning, new technology and product R&D, process improvement, and technical achievement management[34] (IV) Company's Market Position The company holds a mid-to-upper production scale in the titanium dioxide industry, with leading product quality and a significant market share in mid-to-high-end applications, continuously enhancing its competitive advantages and market position through ongoing R&D, technical upgrades, and fundraising projects - The company's production scale is in the mid-to-upper range within the industry, with leading product quality and a significant market share in mid-to-high-end application fields[36] - Through continuous R&D investment, technical upgrades, and the implementation of fundraising projects, the company's scale and product application areas are continuously expanding, enhancing its competitive advantages and market position[36] (V) Key Performance Drivers In the first half of 2025, the company's operating revenue increased by 5.18%, but net profit decreased by 73.17%, mainly due to an 11.41% decline in titanium dioxide sales unit price and increased expensed interest from convertible bonds; the company responded by strengthening supply chain management, optimizing procurement costs, commissioning fundraising projects, implementing "boutique strategy" and "customized production," and strategically expanding upstream and downstream industrial chains to enhance future performance - In the first half of 2025, operating revenue was 834.87 million Yuan, a year-on-year increase of 5.18%; net profit attributable to shareholders of the listed company was 5.10 million Yuan, a year-on-year decrease of 73.17%[37] - The decline in net profit was primarily due to an 11.41% year-on-year decrease in the sales unit price of the main product, titanium dioxide, and increased expensed interest from the issuance of convertible bonds[37] - The company actively responded by strengthening procurement supply chain management and optimizing procurement processes to reduce costs; the first phase of the “600,000 tons/year Titanium Dioxide Dilute Acid Concentration Technical Transformation Project” was put into operation, effectively reducing costs[37] - Implemented a “boutique strategy” and “personalized customized production” differentiated strategy to optimize product quality and achieve growth in titanium dioxide production and sales volumes[37] - Strategically expanded upstream and downstream industrial chains by investing in a marketing company in Singapore to explore overseas markets; acquired a controlling stake in Chenxiang Mining to initiate mining resource development and achieve partial self-sufficiency in key raw materials[38] 2. Core Competitiveness Analysis The company's core competitiveness lies in its regional resource advantages, clean production and circular economy industrial chain, high-quality products and brand effect, and a strong talent and innovative R&D team, collectively supporting its leading market position and sustainable development (I) Geographic Advantage Located in Yunfu City, Guangdong Province, the company benefits from abundant pyrite resources for titanium dioxide production, reducing transportation costs, and well-developed water and land transportation for efficient product and raw material logistics - The company's location in Yunfu City, known as “China's Sulfur Capital,” boasts the largest reserves and highest grade of pyrite in Asia, providing ample raw materials for titanium dioxide production and saving transportation costs[39] - Yunfu City has well-developed water and land transportation, including the Xijiang Golden Waterway inland river hub port and Guangzhou-Yunfu International Logistics Port, facilitating product and raw material transportation and export sales[39] (II) Clean Production and Circular Economy Industrial Chain Advantage The company utilizes a clean co-production sulfuric acid process for titanium dioxide, pioneering a "sulfur-titanium-iron-calcium" circular economy industrial chain that achieves comprehensive resource utilization and waste treatment, with the first phase of its "600,000 tons/year Titanium Dioxide Dilute Acid Concentration Technical Transformation Project" now operational, demonstrating leading technology and significant economic and environmental benefits - The company employs a clean co-production sulfuric acid process for titanium dioxide, forming a “sulfur-titanium-iron-calcium” circular economy industrial chain that achieves comprehensive resource utilization and waste treatment[40] - The company was awarded the title of “Yunfu City Yun'an District Low-Carbon Demonstration Enterprise” and recognized as a “China Sulfuric Acid Process Titanium Dioxide Clean Production and Circular Economy Industrial Chain Demonstration Base”[40] - The first phase of the “600,000 tons/year Titanium Dioxide Dilute Acid Concentration Technical Transformation Project,” a 200,000-ton capacity, has been successfully put into operation, with its technology at a leading domestic and international level, achieving significant economic and environmental benefits[40] (III) Product Quality and Brand Advantage The company's main products, rutile and anatase titanium dioxide, boast superior qualities such as high whiteness, opacity, and dispersibility, are REACH certified, hold a significant market share in mid-to-high-end applications like plastics, and are supported by a "boutique strategy" and "customized production" to meet market demands - The company's main products, rutile and anatase titanium dioxide, possess advantages such as “uniform particle size distribution, high whiteness, blue undertone, high brightness, high purity, high opacity, high dispersibility, and high stability”[43] - Products are certified under European REACH regulations, hold a significant market share in mid-to-high-end application fields such as plastics, and are sold worldwide[43] - The company implements differentiated strategies such as a “boutique strategy” and “personalized customized production” to meet changing market demands[43] (IV) Talent and Innovative R&D Team Advantage The company boasts a high-caliber technical R&D, production, and management team, led by industry expert General Manager He Mingchuan, and continuously invests in R&D, leveraging provincial-level technology centers and a postdoctoral workstation to enhance product quality and technology, evidenced by its repeated recognition as a National High-Tech Enterprise and two new invention patents during the reporting period - The company possesses a high-caliber technical R&D, production, and management team, with General Manager He Mingchuan being an expert in the titanium dioxide industry[44] - The company continuously increases R&D investment, owning first-class R&D platforms such as a provincial-level enterprise technology center, engineering technology research center, and Guangdong Provincial Postdoctoral Workstation[45][46] - The company has been recognized as a National High-Tech Enterprise 5 consecutive times and obtained 2 new invention patents during the reporting period, significantly enhancing product quality and application performance[45][46] 3. Main Business Analysis During the reporting period, the company's operating revenue increased by 5.18%, but financial expenses surged by 951.07% due to increased expensed interest from convertible bonds and bank loans; net cash flow from operating activities turned positive, mainly driven by increased collection of goods payments, with rutile titanium dioxide remaining the primary revenue source despite a slight decrease in gross profit margin Key Financial Data Year-on-Year Changes | Indicator | Current Reporting Period (Yuan) | Prior Year Period (Yuan) | Year-on-Year Change | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 834,874,688.45 | 793,749,839.61 | 5.18% | | | Operating Cost | 758,048,719.84 | 718,483,235.02 | 5.51% | | | Financial Expenses | 13,727,915.33 | 1,306,092.25 | 951.07% | Primarily due to increased expensed interest from convertible bonds and bank loans issued during the current reporting period | | R&D Investment | 25,126,477.84 | 22,670,721.18 | 10.83% | | | Net Cash Flow from Operating Activities | 11,275,557.08 | -116,716,161.80 | | Primarily due to increased collection of goods payments during the current reporting period | Products or Services Accounting for Over 10% of Revenue | Product or Service | Operating Revenue (Yuan) | Operating Cost (Yuan) | Gross Profit Margin | Year-on-Year Change in Operating Revenue | Year-on-Year Change in Operating Cost | Year-on-Year Change in Gross Profit Margin | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Rutile Titanium Dioxide | 729,210,808.03 | 663,312,493.84 | 9.04% | 0.84% | 1.20% | -0.32% | | Anatase Titanium Dioxide | 10,349,213.37 | 9,478,339.34 | 8.41% | -48.78% | -50.99% | 4.12% | | Sulfuric Acid | 3,074,103.54 | 2,771,475.38 | 9.84% | -24.23% | -48.25% | 41.84% | | Other Products | 89,621,417.55 | 80,973,013.81 | 9.65% | 98.08% | 112.71% | -6.21% | 4. Non-Main Business Analysis The company had no non-main business analysis during the reporting period - The company had no non-main business analysis during the reporting period[52] 5. Analysis of Assets and Liabilities At the end of the reporting period, the company's total assets increased by 5.59% year-on-year, with significant increases in monetary funds and accounts receivable, and a substantial rise in long-term borrowings, while certain assets were restricted due to bank financing collateralized by time deposits, fixed assets, and intangible assets Significant Changes in Asset Composition | Item | Amount at End of Current Reporting Period (Yuan) | Proportion of Total Assets | Amount at End of Prior Year (Yuan) | Proportion of Total Assets | Change in Proportion | Explanation of Significant Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Monetary Funds | 234,578,998.60 | 7.98% | 177,993,468.38 | 6.39% | 1.59% | Primarily due to reduced cash outflow for long-term asset construction and increased cash received from sales and bank borrowings during the current reporting period | | Accounts Receivable | 123,546,190.66 | 4.20% | 80,011,798.59 | 2.87% | 1.33% | Due to a larger amount of goods payments not yet due at the end of the current reporting period | | Long-Term Borrowings | 262,377,284.23 | 8.92% | 146,587,582.08 | 5.26% | 3.66% | Primarily due to increased bank borrowings obtained during the current reporting period | Assets and Liabilities Measured at Fair Value | Item | Beginning Balance (Yuan) | Fair Value Change in Current Period (Yuan) | Ending Balance (Yuan) | | :--- | :--- | :--- | :--- | | Receivables Financing | 44,974,889.72 | | 36,367,704.95 | | Financial Liabilities | 34,168.90 | 86,760.00 | 86,760.00 | Restricted Asset Information | Item | Ending Book Balance (Yuan) | Reason for Restriction | | :--- | :--- | :--- | | Monetary Funds | 5,200,000.00 | Pledged time deposits | | Fixed Assets | 31,363,713.55 | Collateral for bank financing | | Intangible Assets | 11,243,643.08 | Collateral for bank financing | 6. Investment Status Analysis During the reporting period, the company's total investment decreased by 41.28% year-on-year; it established a wholly-owned subsidiary, Guangdong Huiyun Mining Investment Co., Ltd., and plans to acquire a controlling stake in Guangnan Chenxiang Mining Development Co., Ltd. through it to achieve partial self-sufficiency in key raw materials; the overall utilization rate of raised funds was 88.84%, with some projects progressing well but the "Titanium Dioxide Dilute Acid Concentration Technical Transformation Project" delayed, and the company also engaged in forward foreign exchange settlement and sales to mitigate exchange rate risks 1. Overall Situation During the reporting period, the company's total investment was 5.05 million Yuan, a decrease of 41.28% compared to the prior year period Investment Amount Comparison | Indicator | Investment Amount in Current Reporting Period (Yuan) | Investment Amount in Prior Year Period (Yuan) | Change Rate | | :--- | :--- | :--- | :--- | | Investment Amount | 5,050,000.00 | 8,600,000.00 | -41.28% | 2. Significant Equity Investments Acquired During the Reporting Period The company established a wholly-owned subsidiary, Guangdong Huiyun Mining Investment Co., Ltd., with a registered capital of 100 million Yuan, and plans to acquire a 70% stake in Guangnan Chenxiang Mining Development Co., Ltd. through Huiyun Mining Investment to achieve partial self-sufficiency in key raw materials Significant Equity Investment Information | Investee Company Name | Main Business | Investment Method | Investment Amount (Yuan) | Shareholding Ratio | | :--- | :--- | :--- | :--- | :--- | | Guangdong Huiyun Mining Investment Co., Ltd. | Business Services | New Establishment | 100,000,000.00 | 100.00% | | Guangnan Chenxiang Mining Development Co., Ltd. | Titanium Mining, Processing, Sales | Acquisition and Capital Increase | 63,000,000.00 | 70.00% | - The acquisition of a controlling stake in Chenxiang Mining aims to initiate mining resource development and operation, achieving partial self-sufficiency in key raw materials, which will positively impact the company's future operating performance[38][62] 3. Significant Non-Equity Investments in Progress During the Reporting Period The company had no significant non-equity investments in progress during the reporting period - The company had no significant non-equity investments in progress during the reporting period[63] 4. Financial Assets Measured at Fair Value The company had no financial assets measured at fair value during the reporting period - The company had no financial assets measured at fair value during the reporting period[63] 5. Use of Raised Funds The company issued convertible bonds in 2022, raising a net amount of 478.41 million Yuan, with cumulative investment of 425 million Yuan as of June 30, 2025, representing an overall utilization rate of 88.84%; while the first phase of the "600,000 tons/year Titanium Dioxide Dilute Acid Concentration Technical Transformation Project" is operational, the overall project is delayed until August 31, 2026, and some idle raised funds were temporarily used to supplement working capital and partially repaid early Overall Use of Raised Funds | Total Raised Funds (10,000 Yuan) | Net Raised Funds (10,000 Yuan) | Total Raised Funds Used in Current Period (10,000 Yuan) | Total Raised Funds Used Cumulatively (10,000 Yuan) | Cumulative Utilization Rate | | :--- | :--- | :--- | :--- | :--- | | 49,000 | 47,841.12 | 3,729.30 | 42,499.88 | 88.84% | - The first phase of the “600,000 tons/year Titanium Dioxide Dilute Acid Concentration Technical Transformation Project,” a 200,000-ton capacity, has been put into operation, but full project production still requires a certain period, with the estimated date of readiness for use extended to August 31, 2026[69][70] - The company previously used 80 million Yuan of idle raised funds to temporarily supplement working capital and repaid 22 million Yuan early on April 11, 2025[67][68] 6. Entrusted Wealth Management, Derivative Investments, and Entrusted Loans The company had no entrusted wealth management or entrusted loans during the reporting period; to mitigate exchange rate risks, it engaged in forward foreign exchange settlement and sales, resulting in a net loss of 0.51 million Yuan in actual gains for the current period, with 1 million Euro forward contracts outstanding at period-end, and the company has established strict risk control measures to prevent market, liquidity, and performance risks - The company had no entrusted wealth management or entrusted loans during the reporting period[73][78] Derivative Investment Information (Forward Foreign Exchange Lock) | Derivative Investment Type | Initial Investment Amount (10,000 Yuan) | Ending Balance (10,000 Yuan) | Ending Investment Amount as % of Company's Net Assets at Period-End | | :--- | :--- | :--- | :--- | | Forward Foreign Exchange Lock | 4,194.05 | 831.43 | 0.62% | - The actual gain/loss for the current reporting period was -0.51 million Yuan (total amount recognized in investment income and fair value change gains/losses)[75][76] - The company conducts foreign exchange hedging transactions following principles of legality, prudence, safety, and effectiveness, avoiding speculative or arbitrage operations, and has established a “Foreign Exchange Hedging Business Management System” to control risks[76] 7. Significant Asset and Equity Sales The company did not sell significant assets or equity during the reporting period - The company did not sell significant assets during the reporting period[79] - The company did not sell significant equity during the reporting period[80] 8. Analysis of Major Holding and Participating Companies The company had no important holding or participating company information to disclose during the reporting period - The company had no important holding or participating company information to disclose during the reporting period[80] 9. Information on Structured Entities Controlled by the Company The company had no information on structured entities controlled during the reporting period - The company had no information on structured entities controlled during the reporting period[81] 10. Risks Faced by the Company and Countermeasures The company faces risks from titanium dioxide market price fluctuations, raw material supply and price volatility, macroeconomic and downstream industry cyclical fluctuations, industry competition, safety and environmental protection, exchange rate changes, and international trade, which it actively addresses through enhanced market analysis, optimized procurement strategies, continuous R&D innovation, technical upgrade projects, improved safety and environmental management, and the use of financial instruments - Risk of significant fluctuations in titanium dioxide market prices: The sales prices of the company's main products are influenced by macroeconomic conditions, supply-demand relationships, and other factors, exhibiting volatility[81] - Risk of supply and price fluctuations of main raw materials: Raw materials such as titanium concentrate, pyrite, sulfuric acid, and natural gas are a high proportion of costs, and price fluctuations may affect profitability[82] - Risk of macroeconomic and downstream industry cyclical fluctuations: Downstream industries of titanium dioxide (e.g., coatings, real estate) are affected by the macroeconomic environment, which may adversely impact the company's performance[83] - Industry competition risk: Increased production capacity and product homogenization in the titanium dioxide industry lead to fierce competition, with small enterprises facing elimination risks[84] - Safety and environmental protection risks: Stricter national regulations mean the company faces safety and environmental pressure, potentially leading to increased investment and higher costs[85] - Exchange rate fluctuation risk: Export business is settled in USD and EUR, and significant depreciation of the exchange rate may result in exchange losses[86] - International trade risk: Expanding titanium dioxide export scale may be affected by anti-dumping investigations and trade barriers[87] 11. Registration Form for Research, Communication, Interview, and Other Activities During the Reporting Period On May 21, 2025, the company participated in the "2024 Annual and Q1 2025 Online Performance Briefing" via Panorama Network's "Investor Relations Interactive Platform" to communicate with investors - On May 21, 2025, the company participated in the “2024 Annual and Q1 2025 Online Performance Briefing” via Panorama Network's online platform to communicate with investors[89] 12. Formulation and Implementation of Market Value Management System and Valuation Enhancement Plan The company has not formulated a market value management system nor disclosed a valuation enhancement plan - The company has not formulated a market value management system[90] - The company has not disclosed a valuation enhancement plan[90] 13. Implementation of "Quality and Return Dual Improvement" Action Plan The company has not disclosed an announcement regarding the "Quality and Return Dual Improvement" action plan - The company has not disclosed an announcement regarding the “Quality and Return Dual Improvement” action plan[90] Section IV Corporate Governance, Environment, and Society 1. Changes in Directors, Supervisors, and Senior Management During the reporting period, there were no changes in the company's directors, supervisors, and senior management, with specific details available in the 2024 annual report - The company's directors, supervisors, and senior management did not change during the reporting period[92] 2. Profit Distribution and Capital Reserve Conversion to Share Capital in the Current Reporting Period The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the semi-annual period - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the semi-annual period[93] 3. Implementation of Company's Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures The company continues to implement its 2024 Restricted Stock Incentive Plan, having initially granted 4.08 million restricted shares to 58 incentive recipients at a grant price of 4.90 Yuan/share, but due to the failure to meet the 2024 company-level performance assessment, 1.224 million restricted shares from the first vesting period have been forfeited, and the grant price has since been adjusted to 4.89 Yuan/share - The company has initially granted 4.08 million second-class restricted shares to 58 incentive recipients, with a grant price of 4.90 Yuan/share[96] - Due to the failure to meet the 2024 company-level performance assessment, 1.224 million restricted shares from the first vesting period of the initial grant have been forfeited and invalidated[98] - The grant price (including reserved shares) for the 2024 Restricted Stock Incentive Plan has been adjusted from 4.90 Yuan/share to 4.89 Yuan/share[98] 4. Environmental Information Disclosure The company and its main subsidiaries are included in the list of enterprises required to disclose environmental information by law and have publicly disclosed their pollutant discharge permit information and annual environmental information through designated websites - The company and its main subsidiaries are included in the list of enterprises required to disclose environmental information by law[99] - The company has publicly disclosed environmental information on the National Ministry of Ecology and Environment's Pollutant Discharge Permit Information Disclosure Platform and Guangdong Provincial Enterprise Environmental Information Disclosure Platform[99][100] 5. Social Responsibility Performance The company actively fulfills its social responsibilities by ensuring shareholder rights through standardized operations, protecting employee rights by strictly adhering to labor laws, upholding customer and supplier rights with a customer-first approach, prioritizing information disclosure and investor relations, and engaging in environmental protection and public welfare initiatives, including rural revitalization, to embody corporate citizenship - The company strictly adheres to laws and regulations, establishes a standardized corporate governance structure, ensures the proper operation of the general meeting of shareholders, board of directors, supervisory board, and management, and actively implements profit distribution policies to reward investors[102] - The company practices a “people-oriented” philosophy, strictly complies with labor laws, develops a comprehensive human resource management system, protects employees' legitimate rights and interests, and assists employees with issues such as household registration and children's schooling[103] - The company adheres to business principles of innovation, customer-first, and shared benefits, establishes customer management norms and complaint handling processes, regularly assesses customer satisfaction, and builds positive cooperative relationships with suppliers[104] - The company highly values information disclosure, maintains good communication with investors through diversified platforms, and protects investors' legitimate rights and interests[105][106] - The company adheres to the “people-oriented, environment-first” philosophy, insists on a circular economy, advocates for electricity, paper, and water conservation, and actively participates in public welfare and rural revitalization initiatives, having paid 0.16 million Yuan in sponsorship fees during the reporting period[107][109] Section V Significant Events 1. Commitments Fulfilled and Overdue Unfulfilled Commitments by Actual Controller, Shareholders, Related Parties, Acquirers, and the Company During and as of the End of the Reporting Period The company had no commitments fulfilled or overdue unfulfilled commitments during the reporting period - The company had no commitments fulfilled or overdue unfulfilled commitments by its actual controller, shareholders, related parties, acquirers, or the company itself during or as of the end of the reporting period[111] 2. Non-Operating Funds Occupied by Controlling Shareholders and Other Related Parties of the Listed Company The company had no non-operating funds occupied by controlling shareholders and other related parties during the reporting period - The company had no non-operating funds occupied by controlling shareholders and other related parties during the reporting period[112] 3. Irregular External Guarantees The company had no irregular external guarantees during the reporting period - The company had no irregular external guarantees during the reporting period[113](index=113&type=chunk