龙佰集团(002601) - 2022 Q2 - 季度财报

Important Notice, Table of Contents, and Definitions This section provides essential preliminary information, including the company's assurances, a structured overview of the report, and definitions of key terms Important Notice The Board of Directors, Supervisory Committee, and senior management guarantee the report's accuracy and completeness, advising investors to consider future operating risks - The company's Board of Directors, Supervisory Committee, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report, free from false records, misleading statements, or major omissions[2] - Investors are advised to pay attention to the future operating risks and countermeasures described in "Section III Management Discussion and Analysis"[2] - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital[2] Table of Contents This section lists the structured table of contents, providing an overview of the report's ten chapters from important notices to financial statements Definitions This section defines key terms and entities used in the report, including company names, laws, stock exchanges, and major subsidiaries, ensuring clear understanding - "The Company," "Longbai Group," and other related terms refer to "Longbai Group Co., Ltd.," which was renamed in July 2021[5] - The reporting period refers to January 1, 2022, to June 30, 2022[7] Company Profile and Key Financial Indicators This section provides an overview of the company's basic information, contact details, and key financial performance metrics and indicators for the reporting period Company Profile This section provides the company's basic information, including its stock ticker "Longbai Group," stock code "002601," and legal representative Xu Gang Company Basic Information | Indicator | Content | | :--- | :--- | | Stock Abbreviation | Longbai Group | | Stock Code | 002601 | | Listing Exchange | Shenzhen Stock Exchange | | Chinese Name | Longbai Group Co., Ltd. | | Legal Representative | Xu Gang | Contact Persons and Information This section provides detailed contact information for the company's Board Secretary Zhang Haitao and Securities Affairs Representative Wang Haibo, including address, phone, fax, and email Contact Persons and Information | Position | Board Secretary | Securities Affairs Representative | | :--- | :--- | :--- | | Name | Zhang Haitao | Wang Haibo | | Contact Address | Fengfeng Office, Zhongzhan District, Jiaozuo City, Henan Province | Fengfeng Office, Zhongzhan District, Jiaozuo City, Henan Province | | Phone | 0391-3126666 | 0391-3126666 | | Fax | 0391-3126111 | 0391-3126111 | | Email | zht@lomonbillions.com | wanghaibo@lomonbillions.com | Other Information The company's registered address, office address, postal code, website, email, and information disclosure channels remained unchanged during the reporting period - The company's registered address, office address, postal code, website, and email address remained unchanged during the reporting period[11] - The company's chosen information disclosure newspaper, the website designated by the China Securities Regulatory Commission, and the location for semi-annual report availability remained unchanged during the reporting period[13] Key Accounting Data and Financial Indicators During the reporting period, the company's operating revenue increased by 26.04% to 12.4 billion yuan, while net profit attributable to shareholders decreased by 6.93% to 2.266 billion yuan Key Accounting Data and Financial Indicators (Current Reporting Period vs. Prior Year Period) | Indicator | Current Reporting Period (yuan) | Prior Year Period (yuan) | Change from Prior Year Period | | :--- | :--- | :--- | :--- | | Operating Revenue | 12,400,019,233.78 | 9,837,852,538.57 | 26.04% | | Net Profit Attributable to Listed Company Shareholders | 2,266,206,063.33 | 2,434,966,981.89 | -6.93% | | Net Profit Attributable to Listed Company Shareholders (Excluding Non-recurring Gains and Losses) | 2,224,487,401.11 | 2,401,527,360.41 | -7.37% | | Net Cash Flow from Operating Activities | 1,679,668,528.78 | 1,525,260,012.38 | 10.12% | | Basic Earnings Per Share (yuan/share) | 1.01 | 1.12 | -9.82% | | Diluted Earnings Per Share (yuan/share) | 1.01 | 1.12 | -9.82% | | Weighted Average Return on Net Assets | 11.97% | 14.71% | -2.74% | | Total Assets (yuan) | 51,714,172,713.98 | 45,331,176,466.09 | 14.08% | | Net Assets Attributable to Listed Company Shareholders | 20,068,999,601.34 | 18,917,780,631.28 | 6.09% | Differences in Accounting Data under Domestic and Overseas Accounting Standards The company reported no differences in net profit and net assets between international/overseas accounting standards and Chinese accounting standards during the reporting period - The company reported no differences in net profit and net assets between financial reports disclosed under International Accounting Standards and Chinese Accounting Standards during the reporting period[15] - The company reported no differences in net profit and net assets between financial reports disclosed under overseas accounting standards and Chinese Accounting Standards during the reporting period[16] Non-recurring Gains and Losses and Amounts The company's total non-recurring gains and losses amounted to 41.718 million yuan during the reporting period, primarily from government subsidies and non-current asset disposal gains/losses Non-recurring Gains and Losses and Amounts | Item | Amount (yuan) | | :--- | :--- | | Gains and losses from disposal of non-current assets | -11,537,896.16 | | Government grants recognized in current profit or loss | 60,353,379.99 | | Fund occupation fees received from non-financial enterprises recognized in current profit or loss | 370,491.98 | | Gains and losses from debt restructuring | -2,675,963.69 | | Gains and losses from changes in fair value and investment income | 1,543,337.99 | | Reversal of impairment provisions for accounts receivable subject to separate impairment testing | 1,266,700.90 | | Other non-operating income and expenses apart from the above | 2,983,023.77 | | Less: Income tax impact | 7,378,700.32 | | Impact on minority interests (after tax) | 3,205,712.24 | | Total | 41,718,662.22 | - The company has no other profit or loss items that meet the definition of non-recurring gains and losses, nor does it classify non-recurring gains and losses as recurring items[18] Management Discussion and Analysis This section provides an in-depth analysis of the company's business operations, core competitiveness, financial performance, investment activities, and risk management strategies during the reporting period Principal Businesses Engaged by the Company During the Reporting Period Longbai Group is a large chemical enterprise integrating titanium and zirconium industry chains, specializing in titanium dioxide, sponge titanium, and zirconium products, with a global sales network and a strategic focus on new energy - The company primarily engages in the production and sales of titanium dioxide, sponge titanium, zirconium products, with sales to over 80 countries across 6 continents[19] - The company's titanium dioxide production capacity is 1.11 million tons/year, and sponge titanium capacity is 50,000 tons/year, both ranking among the world's largest[19] - The company adheres to its mission of "creating a beautiful titanium life and being a respected enterprise," with 30 years of exploration in titanium and related industries[19] Main Products and Uses The company's main products include titanium dioxide, a superior white pigment used in coatings and plastics, and sponge titanium, a lightweight, high-strength, corrosion-resistant material for aerospace applications - Titanium dioxide is an excellent white pigment widely used in coatings, plastics, paper, printing inks, and rubber, often referred to as the "barometer of economic development"[19] - In 2021, the company was the third largest global and the largest Asian and Chinese titanium dioxide producer by output, sales, revenue, and capacity, holding 11.4%-11.3% of the global market and 23.8%-25.3% of the Chinese market[19] - Sponge titanium, a pure titanium metal, is known for its low density, high specific strength, resistance to extreme temperatures, and corrosion resistance, earning it titles like "space metal," "ocean metal," and "strategic metal," widely used in aerospace, aviation, and biomedical fields[22] Upstream and Downstream Industrial Chains of Main Products The company's products are involved in both titanium dioxide and titanium material industrial chains, both originating from ilmenite and rutile mining and beneficiation - The company's products are involved in two industrial chains, titanium dioxide and titanium materials, both starting from ilmenite and rutile mining and beneficiation[26] - In the industry chain, the company operates as a titanium dioxide producer (ilmenite mining and beneficiation - titanium concentrate - titanium dioxide) and a sponge titanium producer (ilmenite mining and beneficiation - titanium concentrate - high titanium slag - sponge titanium)[26] Main Business Model The company leverages its global titanium mineral resources for self-sufficient titanium concentrate production, which is then processed into various titanium products, utilizing a continuous large-scale production model with combined direct and distribution sales channels - The company possesses multiple titanium mineral resources both domestically and internationally, with the largest being the Panzhihua Key Titanium Magnetite mine[27] - The company uses self-produced and externally sourced titanium concentrate to produce sulfuric acid process titanium dioxide, titanium-rich material, and pig iron, with titanium-rich material further processed into titanium tetrachloride, sponge titanium, and chloride process titanium dioxide[28] - The company adopts a typical continuous large-scale production model for chemical enterprises, implementing a sales model combining direct sales and distribution, and has established sales subsidiaries in Hong Kong, the Americas, and Europe[28] Market Drivers and Future Opportunities The titanium dioxide market is driven by global economic growth, industrial upgrading policies, and industry consolidation, while the sponge titanium market benefits from increased demand in high-end sectors like aerospace and supportive policies - Demand in downstream titanium dioxide industries is rising, particularly driven by industrialization and urbanization in developing countries, stimulating product demand growth[29] - National policies encourage the construction of new chloride process titanium dioxide production lines with an annual capacity of 30,000 tons or more per single line, while restricting new sulfuric acid process titanium dioxide plants, benefiting companies with core chloride process technology[29] - The sponge titanium market benefits from increased demand for high-end sponge titanium due to accelerated domestic production of large aircraft, as well as favorable policies and regulations such as the "Guidance for New Material Industry Development"[30] Development Strategy The company pursues a dual-driven strategy of mergers and acquisitions alongside organic growth, aiming to build a high-quality industrial development system covering titanium, zirconium, vanadium, iron, and scandium elements - The company adheres to a dual-driven strategy of mergers and acquisitions and organic growth, building a high-quality industrial development system covering products related to titanium, zirconium, vanadium, iron, and scandium elements[31] - The company has invested in and constructed projects such as the 200,000 tons/year chloride process titanium dioxide production line in Jiaozuo and the 500,000 tons Panzhihua titanium concentrate upgrading to chloride titanium slag project[31] - Based on a "large chemical, low-cost" development philosophy, the company establishes a differentiated low-cost core advantage through "scale effect, circular effect, and innovation effect"[31] Transformation and Industrial Innovation - Titanium-Lithium Coupling The company actively embraces the "dual carbon" strategy by developing a "titanium-lithium coupling" model, utilizing titanium dioxide production by-products for lithium battery material production, thereby fostering a second growth curve - The company's strategic entry into the new energy industry, aligning with the national "dual carbon" strategy, represents a significant strategic transformation for Longbai Group in response to market changes[32] - The company utilizes by-products from titanium dioxide production (ferrous sulfate, caustic soda, sulfuric acid, steam, hydrogen, etc.) directly or indirectly for lithium battery cathode and anode material production, reducing costs and forming a "titanium-lithium coupling" full industrial chain[32] - The company has acquired 100% equity in Henan Zhongtan New Material Technology Co., Ltd., and invested in projects such as a 200,000 tons/year battery-grade iron phosphate project, a 200,000 tons/year lithium-ion battery material industrialization project, and a 100,000 tons/year artificial graphite anode material project for lithium-ion batteries, with some projects already in mass production[33] Analysis of Core Competitiveness The company's core competitiveness stems from its global leadership in titanium dioxide, unique vertical integration and horizontal coupling, strong synergistic integration, leading R&D, efficient global sales, and experienced management team - The company is an unshakeable leader in the global titanium dioxide market, possessing both sulfuric acid and chloride process technologies, holding positions as the world's largest sulfuric acid titanium dioxide producer and China's largest chloride process titanium dioxide producer[34] - The company is China's only titanium dioxide producer with a fully integrated titanium industry chain, controlling high-quality mineral resources and advanced processing capabilities, achieving full-chain product integration[35] - The company adopts a unique "horizontal coupling green economy model," continuously improving its green industrial chain through R&D and implementation of various product processes, actively expanding into titanium dioxide derivatives such as vanadium, iron, and scandium, achieving circular utilization of waste by-products[36] - The company possesses strong M&A and resource integration capabilities, achieving synergistic development of products covering titanium, zirconium, vanadium, iron, and scandium elements, continuously optimizing its revenue structure[37] - The company holds 780 patents, with 22 R&D achievements receiving provincial or higher science and technology progress awards, and has led or participated in the revision of 19 national standards and 16 industry standards, demonstrating significant technological advantages in multiple areas[39] - The company boasts an efficient and multi-tiered global sales network, with products sold in over 80 countries worldwide, and has established subsidiaries in the United States, the United Kingdom, and Hong Kong[40] - Chairman Mr. Xu Gang has been deeply involved in the titanium industry for over 30 years, leading a stable and experienced management team that attracts and retains top talent through incentive mechanisms like employee stock ownership plans[41][42] Analysis of Principal Business In H1 2022, the company achieved 26.04% revenue growth to 12.4 billion yuan, despite a 6.93% decline in net profit attributable to shareholders, driven by record titanium dioxide and sponge titanium sales and new energy sector breakthroughs - In H1 2022, the company achieved operating revenue of 12.40 billion yuan, a 26.04% year-on-year increase; total profit was 2.735 billion yuan, a 4.23% year-on-year decrease; and net profit attributable to listed company shareholders was 2.266 billion yuan, a 6.93% year-on-year decrease[44] - Titanium dioxide and sponge titanium production and sales reached record highs, maintaining high gross margins; titanium dioxide production was 517,400 tons (up 19.19%), sales were 469,100 tons (up 7.17%); sponge titanium production was 13,589.47 tons (up 169.05%), sales were 14,521.17 tons (up 142.62%)[45] - The company's lithium battery new energy material production lines for iron phosphate, lithium iron phosphate, and graphite anodes have all been completed, commenced production, and achieved normal sales, with gradually increasing capacity utilization rates[46] - The company's sponge titanium capacity reached 50,000 tons/year, ranking first globally, and it possesses rotor-grade sponge titanium production capabilities, with titanium alloy projects underway[47][48] - The company launched an "industry benchmarking for cost reduction and efficiency improvement" initiative, reducing costs by approximately 180 million yuan in H1; optimizing the procurement and logistics system saved approximately 155 million yuan in H1[49][50] - In May 2022, the company implemented its Q1 2022 equity distribution, paying a cash dividend of 10 yuan (tax inclusive) per 10 shares to all shareholders, totaling 2.381 billion yuan in cash[51] Macroeconomic and Industry Operating Conditions In H1 2022, despite a complex international environment, China's economy stabilized with 2.5% GDP growth, while titanium dioxide prices rose due to raw material costs and strong overseas demand, and sponge titanium prices remained high - In H1 2022, China's GDP grew by 2.5% year-on-year, and total profits of industrial enterprises above designated size nationwide increased by 1.0% year-on-year[43] - Influenced by the Ukraine crisis, rising raw material costs drove titanium dioxide prices to fluctuate upwards, with relatively strong demand in overseas titanium dioxide markets[43] - The sponge titanium market performed well with strong demand; rising prices of raw materials like magnesium ingots limited capacity release for semi-process enterprises, keeping sponge titanium prices at a high level[43] Overall Business Management Situation In H1 2022, the company achieved record titanium dioxide and sponge titanium production and sales, significant breakthroughs in new energy, and growth in titanium metal business, while effectively controlling costs and rewarding shareholders 2022 H1 Key Financial Data | Indicator | Amount (billion yuan) | Year-on-year Change | | :--- | :--- | :--- | | Operating Revenue | 12.40 | 26.04% | | Total Profit | 2.735 | -4.23% | | Net Profit Attributable to Listed Company Shareholders | 2.266 | -6.93% | 2022 H1 Main Product Production and Sales | Product | Production (ten thousand tons/tons) | Production Year-on-year Change | Sales (ten thousand tons/tons) | Sales Year-on-year Change | | :--- | :--- | :--- | :--- | :--- | | Titanium Dioxide | 51.74 | 19.19% | 46.91 | 7.17% | | Sulfuric Acid Process Titanium Dioxide | 34.10 | 8.01% | 32.78 | 5.91% | | Chloride Process Titanium Dioxide | 17.64 | 48.99% | 14.14 | 10.30% | | Sponge Titanium | 13,589.47 | 169.05% | 14,521.17 | 142.62% | | Iron Concentrate | 191.95 | -3.51% | 220.72 | 11.43% | | Titanium Concentrate | 48.16 | 4.67% | All for internal use | - | - The company's lithium battery new energy material production lines for iron phosphate, lithium iron phosphate, and graphite anodes have all been completed, commenced production, and achieved normal sales, with gradually increasing capacity utilization rates[46] - The company's sponge titanium capacity reached 50,000 tons/year, ranking first globally, and it possesses rotor-grade sponge titanium production capabilities[47] - The company launched an "industry benchmarking for cost reduction and efficiency improvement" initiative, reducing costs by approximately 180 million yuan in H1; optimizing the procurement and logistics system saved approximately 155 million yuan in H1[49][50] - In May 2022, the company implemented its Q1 2022 equity distribution, paying a cash dividend of 10 yuan (tax inclusive) per 10 shares to all shareholders, totaling 2.381 billion yuan in cash[51] Significant Changes in Profit Composition or Sources While the company's profit composition remained stable, operating costs, administrative expenses, and R&D investments significantly increased year-on-year, while financial expenses substantially decreased due to exchange gains 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 | 12,400,019,233.78 | 9,837,852,538.57 | 26.04% | - | | Operating Cost | 8,059,733,838.59 | 5,781,713,534.41 | 39.40% | Primarily due to increased sales volume and rising raw material prices | | Administrative Expenses | 588,517,258.80 | 368,910,859.82 | 59.53% | Primarily due to increased equity incentives, workshop repair fees, and material consumption | | Financial Expenses | -6,470,902.89 | 95,296,167.69 | -106.79% | Primarily due to exchange rate fluctuations and increased exchange gains | | R&D Investment | 649,943,002.26 | 414,216,259.01 | 56.91% | Primarily due to increased investment in raw materials, processes, titanium dioxide properties, and new product development to cope with market competition and meet diverse customer needs | | Net Cash Flow from Operating Activities | 1,679,668,528.78 | 1,525,260,012.38 | 10.12% | - | | Net Cash Flow from Financing Activities | -40,466,920.94 | 1,674,477,861.23 | -102.42% | Primarily due to reduced capital contributions and equity incentive payments received in the current period | | Net Increase in Cash and Cash Equivalents | 269,307,536.35 | 1,573,956,818.58 | -82.89% | Primarily due to reduced net cash flow from financing activities in the current period | - The company's profit composition or sources did not undergo significant changes during the reporting period[52] Composition of Operating Revenue Total operating revenue reached 12.4 billion yuan, with chemical raw materials and products accounting for 96.80%; titanium dioxide remained the primary revenue source at 71.68%, while overseas revenue increased to 41.47% Composition of Operating Revenue (by Industry, Product, Region) | Category | Item | Amount (yuan) | Proportion of Operating Revenue | Prior Year Period Amount (yuan) | Proportion of Operating Revenue in Prior Year Period | Year-on-year Change (percentage points) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | By Industry | Chemical Raw Materials and Chemical Products Manufacturing | 12,003,501,564.06 | 96.80% | 9,517,549,825.39 | 96.74% | 0.06% | | | Other Businesses | 396,517,669.72 | 3.20% | 320,302,713.18 | 3.26% | -0.06% | | By Product | Titanium Dioxide | 8,888,072,126.53 | 71.68% | 7,107,500,425.90 | 72.25% | -0.57% | | | Iron Series Products | 1,326,322,442.84 | 10.70% | 1,254,369,639.86 | 12.75% | -2.05% | | | Sponge Titanium and Titanium Tetrachloride | 930,772,949.18 | 7.51% | 593,410,204.43 | 6.03% | 1.47% | | | Zirconium Products | 576,305,642.50 | 4.65% | 422,428,342.80 | 4.29% | 0.35% | | | Other | 678,546,072.73 | 5.47% | 460,143,925.58 | 4.68% | 0.79% | | By Region | Domestic | 7,258,027,259.62 | 58.53% | 6,129,457,751.79 | 62.30% | -3.77% | | | International | 5,141,991,974.16 | 41.47% | 3,708,394,786.78 | 37.70% | 3.77% | Industry, Product, or Region Accounting for Over 10% of Operating Revenue or Operating Profit | Category | Item | Operating Revenue (yuan) | Operating Cost (yuan) | Gross Margin | Operating Revenue Year-on-year Change | Operating Cost Year-on-year Change | Gross Margin Year-on-year Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | By Industry | Chemical Raw Materials and Chemical Products Manufacturing | 12,003,501,564.06 | 7,831,373,480.09 | 34.76% | 26.12% | 42.50% | -7.50% | | By Product | Titanium Dioxide | 8,888,072,126.53 | 5,782,580,949.22 | 34.94% | 25.05% | 44.55% | -8.78% | | | Iron Series Products | 1,326,322,442.84 | 712,442,726.85 | 46.28% | 5.74% | 18.31% | -5.71% | | | Sponge Titanium and Titanium Tetrachloride | 930,772,949.18 | 738,231,687.90 | 20.69% | 56.85% | 72.32% | -7.12% | | | Zirconium Products | 576,305,642.50 | 402,080,851.62 | 30.23% | 36.43% | 12.40% | 14.91% | | By Region | Domestic | 6,861,509,589.90 | 4,398,451,427.88 | 35.90% | 18.12% | 29.57% | -5.67% | | | International | 5,141,991,974.16 | 3,432,922,052.21 | 33.24% | 38.66% | 63.38% | -10.10% | Analysis of Non-Principal Business The company did not conduct any analysis of non-principal businesses during the reporting period Analysis of Assets and Liabilities As of the end of the reporting period, total assets reached 51.714 billion yuan, a 14.08% increase, with net assets attributable to shareholders at 20.069 billion yuan, a 6.09% increase, alongside significant growth in monetary funds, accounts receivable, inventory, fixed assets, and construction in progress Significant Changes in Asset and Liability Composition | Item | Amount at End of Reporting Period (yuan) | Proportion of Total Assets | Amount at End of Prior Year (yuan) | Proportion of Total Assets in Prior Year | Change in Proportion | | :--- | :--- | :--- | :--- | :--- | :--- | | Monetary Funds | 8,120,367,252.01 | 15.70% | 6,287,035,428.91 | 13.87% | 1.83% | | Accounts Receivable | 2,644,509,472.08 | 5.11% | 1,967,428,387.16 | 4.34% | 0.77% | | Inventories | 5,727,314,830.22 | 11.07% | 4,515,997,872.49 | 9.96% | 1.11% | | Fixed Assets | 13,105,782,085.90 | 25.34% | 11,053,183,363.86 | 24.38% | 0.96% | | Construction in Progress | 6,664,815,273.95 | 12.89% | 5,436,430,950.24 | 11.99% | 0.90% | | Short-term Borrowings | 5,549,418,131.69 | 10.73% | 4,624,085,750.29 | 10.20% | 0.53% | | Notes Payable | 9,836,246,202.39 | 19.02% | 6,535,600,545.53 | 14.42% | 4.60% | Asset Rights Restricted as of the End of the Reporting Period | Item | Carrying Amount at Period-end (yuan) | Reason for Restriction | | :--- | :--- | :--- | | Monetary Funds | 5,989,206,043.24 | Bank acceptance bill deposits, letter of credit deposits, WIM150 project managed funds, etc. | | Accounts Receivable Financing | 45,626,760.03 | Pledged for issuance | | Long-term Equity Investments | 829,020,001.00 | Pledged for loans | | Fixed Assets | 145,725,050.22 | Mortgaged for loans | | Intangible Assets | 194,533,887.88 | Mortgaged for loans | | Total | 7,204,111,742.37 | - | - The company had no significant overseas assets or assets and liabilities measured at fair value during the reporting period[15][16][56][59] Analysis of Investment Status The company's investment amounted to 280 million yuan, a significant 87.16% year-on-year decrease, with raised funds primarily allocated to a 200,000 tons/year chloride process titanium dioxide project and permanent working capital Investment Amount During the Reporting Period | Indicator | Amount (yuan) | Change Rate | | :--- | :--- | :--- | | Investment Amount in Current Reporting Period | 280,000,000.00 | -87.16% | | Investment Amount in Prior Year Period | 2,180,440,207.20 | - | - The company had no significant equity investments, non-equity investments, securities investments, or derivative investments during the reporting period[59] Overall Utilization of Raised Funds (Unit: ten thousand yuan) | Fundraising Year | Fundraising Method | Total Raised Funds | Total Raised Funds Used in Current Period | Total Raised Funds Used Cumulatively | Unused Raised Funds | | :--- | :--- | :--- | :--- | :--- | :--- | | 2021 | Non-public Issuance of Shares | 224,145.32 | 44,099.94 | 188,519.14 | 35,626.18 | Status of Projects Committed with Raised Funds (Unit: ten thousand yuan) | Committed Investment Project | Committed Investment Amount of Raised Funds | Adjusted Total Investment Amount | Amount Invested in Current Reporting Period | Cumulative Investment Amount as of Period-end | Investment Progress as of Period-end | | :--- | :--- | :--- | :--- | :--- | :--- | | 200,000 tons/year Chloride Process Titanium Dioxide Production Line Project | 150,000 | 150,000 | 44,099.94 | 114,373.82 | 76.25% | | Permanent Supplement to Working Capital | 76,480 | 74,145.32 | 0 | 74,145.32 | 100.00% | - The company previously used a portion of idle raised funds to temporarily supplement working capital, which was fully repaid on February 8, 2022[63] Significant Asset and Equity Disposals The company did not dispose of any significant assets or equity during the reporting period - The company did not dispose of any significant assets during the reporting period[64] - The company did not dispose of any significant equity during the reporting period[65] Analysis of Major Holding and Participating Companies This section details the financial information of major subsidiaries like Henan Billions New Materials, Longbai Sichuan Titanium Industry, Longbai Sichuan Mining & Metallurgy, and Longbai Xiangyang Titanium Industry, which significantly contributed to revenue and net profit in titanium dioxide and mineral products Major Subsidiaries and Associates with Over 10% Impact on Company's Net Profit (Unit: yuan) | Company Name | Company Type | Main Business | Registered Capital | Total Assets | Net Assets | Operating Revenue | Operating Profit | Net Profit | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Henan Billions New Materials Co., Ltd. | Subsidiary | Titanium Dioxide | 1,700,000,000.00 | 11,653,072,223.15 | 3,406,488,710.40 | 3,909,133,171.57 | 342,476,816.04 | 296,126,213.49 | | Longbai Sichuan Titanium Industry Co., Ltd. | Subsidiary | Titanium Dioxide | 800,000,000.00 | 4,812,292,807.60 | 2,007,618,035.11 | 2,236,930,351.31 | 426,776,007.71 | 367,279,051.55 | | Longbai Sichuan Mining & Metallurgy Co., Ltd. | Subsidiary | Mineral Products | 520,000,000.00 | 6,116,657,724.54 | 3,665,863,840.21 | 2,469,356,354.06 | 1,238,401,745.64 | 1,052,471,280.36 | | Longbai Xiangyang Titanium Industry Co., Ltd. | Subsidiary | Titanium Dioxide | 300,000,000.00 | 2,331,770,161.33 | 987,574,142.71 | 1,515,424,192.67 | 266,290,471.50 | 239,984,540.97 | - Information regarding the acquisition and disposal of subsidiaries during the reporting period is applicable, but specific details were not provided[66] Information on Structured Entities Controlled by the Company The company did not control any structured entities during the reporting period Risks Faced by the Company and Countermeasures The company faces risks from tightening environmental policies, rapid expansion, price volatility, demand shifts, investment, exchange rates, and international events, which it addresses through environmental investments, management improvements, supply chain optimization, and financial tools - The company addresses environmental policy risks by continuously increasing environmental investments, ensuring compliance with emission standards, and developing a circular economy[67] - The company addresses operational management risks by unifying management philosophies, strengthening benchmarking, improving employee knowledge structures, and attracting outstanding talent[68] - The company addresses product and raw material price fluctuation risks through domestic and international resource integration, technological innovation, expanding mining and beneficiation capabilities, and hedging against price volatility[69] - The company addresses product demand risks by expanding chloride process titanium dioxide capacity, optimizing product structure, and enhancing product quality[70] - The company addresses investment risks by engaging professional teams, prudently selecting investment targets, conducting comprehensive due diligence, and establishing efficient decision-making mechanisms[71] - The company addresses exchange rate risks by enhancing management's foreign exchange expertise, monitoring market fluctuations, utilizing financial instruments, and adjusting settlement and pricing policies[72][73] - The company addresses "black swan" event risks such as international situations and epidemics through close monitoring, stringent prevention and control, flexible response measures, and optimizing product structure[74] Corporate Governance This section outlines the company's governance structure, including shareholder meetings, changes in directors and senior management, profit distribution plans, and the implementation of equity incentive and employee stock ownership plans Information on Annual and Extraordinary General Meetings Held During the Reporting Period During the reporting period, the company held one annual general meeting and four extraordinary general meetings, with investor participation exceeding 45% for all, and resolutions were disclosed as required Shareholder Meeting Status During the Reporting Period | Session | Meeting Type | Investor Participation Rate | Date Held | Disclosure Date | | :--- | :--- | :--- | :--- | :--- | | 2022 First Extraordinary General Meeting | Extraordinary General Meeting | 45.59% | February 07, 2022 | February 08, 2022 | | 2021 Annual General Meeting | Annual General Meeting | 46.82% | May 05, 2022 | May 06, 2022 | | 2022 Second Extraordinary General Meeting | Extraordinary General Meeting | 46.23% | May 16, 2022 | May 17, 2022 | | 2022 Third Extraordinary General Meeting | Extraordinary General Meeting | 46.07% | June 02, 2022 | June 03, 2022 | | 2022 Fourth Extraordinary General Meeting | Extraordinary General Meeting | 45.89% | June 30, 2022 | July 01, 2022 | - There were no instances during the reporting period where preferred shareholders with restored voting rights requested an extraordinary general meeting[75] Changes in Directors, Supervisors, and Senior Management During the reporting period, the company experienced multiple changes in senior management, including the appointment and dismissal of the President, Executive Vice President, Compliance Director, and HR Director, as well as the departure and election of the Chairman of the Supervisory Committee Changes in Company Directors, Supervisors, and Senior Management | Name | Position Held | Type | Date | Reason | | :--- | :--- | :--- | :--- | :--- | | Xu Gang | President | Dismissal | January 14, 2022 | Resigned as President due to work arrangement adjustments, still serves as Chairman, Director of the Board Strategy Committee, and Member of the Board Nomination Committee | | He Benliu | Executive Vice President | Dismissal | January 14, 2022 | Resigned as Executive Vice President due to work arrangement adjustments | | Yan Ming | Compliance Director and HR Director | Dismissal | January 14, 2022 | Resigned as Compliance Director and HR Director due to work arrangement adjustments, appointed Chairman of Henan Billions New Energy Materials Co., Ltd., a subsidiary of the company, responsible for the company's new energy business segment | | He Benliu | President | Appointment | January 17, 2022 | Appointed | | Wu Pengsen | Executive Vice President and Compliance Director | Appointment | January 17, 2022 | Appointed | | Zhang Haitao | HR Director | Appointment | January 17, 2022 | Appointed | | Feng Jun | Chairman of Supervisory Committee | Departure | June 02, 2022 | Voluntarily resigned due to personal reasons | | Zhang Gang | Chairman of Supervisory Committee | Election | June 02, 2022 | Elected | Profit Distribution and Capital Reserve Conversion to Share Capital During the Reporting Period The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for this 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[78] Implementation of Company Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures The company continued its 2021 restricted stock incentive plan, repurchasing and canceling shares from ineligible participants while granting new shares to reserved grantees, with the employee stock ownership plan covering 2,787 employees and holding 0.93% of total share capital - On May 28, 2021, the company initially granted 139.20 million restricted shares to 5,001 incentive recipients at an exercise price of 15.64 yuan/share, with 139.06 million shares actually granted to 4,859 individuals[81] - During the reporting period, the company repeatedly repurchased and canceled restricted shares due to the departure, retirement, or death of incentive recipients, cumulatively reducing share capital[82][83][84] - On May 17, 2022, the company granted 10 million reserved restricted shares to 883 incentive recipients at an exercise price of 9.38 yuan/share, with 9.975 million shares actually granted to 833 individuals[83] Status of All Effective Employee Stock Ownership Plans During the Reporting Period | Scope of Employees | Number of Employees | Total Shares Held | Proportion of Total Listed Company Share Capital | Funding Sources for the Plan | | :--- | :--- | :--- | :--- | :--- | | On-the-job employees receiving compensation from the company and its subsidiaries, having signed labor contracts, and meeting the company's performance targets. | 2,787 | 22,116,117 | 0.93% | Legitimate employee compensation, self-raised funds, and other methods permitted by laws and regulations. | - The company's directors, supervisors, and senior management hold shares in the employee stock ownership plan, including He Benliu, Chang Yili, Yang Minle, Shen Qingfei, Wu Pengsen, Zhang Haitao, and Chen Jianli[86][87] Environmental and Social Responsibility This section details the company's commitment to environmental protection, including pollution control, compliance, and carbon reduction initiatives, alongside its social responsibility efforts in rural revitalization and comprehensive safety production management Significant Environmental Issues As a key polluter, the company and its subsidiaries continuously upgrade waste treatment facilities to ensure compliance, have environmental approvals and emergency plans, received no penalties, and actively reduce carbon emissions through structural optimization and resource recycling Main Pollutant Emission Status of the Listed Company and its Subsidiaries | Company or Subsidiary Name | Name of Main Pollutants and Characteristic Pollutants | Emission Method | Number of Emission Outlets | Emission Concentration | Applicable Pollutant Emission Standard | Total Emissions | Approved Total Emissions | Exceedance Status | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Longbai Group Co., Ltd. | COD | Continuous | 1 | 56.33mg/L | 300mg/L | 327.72t | 1105.3t | 0 | | Longbai Group Co., Ltd. | Ammonia Nitrogen | Continuous | 1 | 15.83mg/L | 30mg/L | 94.49t | 273t | 0 | | Longbai Sichuan Titanium Industry Co., Ltd. | COD | Continuous | 1 | 53.17mg/L | 40mg/L | 389.4t | 432t | 0 | | Longbai Sichuan Titanium Industry Co., Ltd. | Ammonia Nitrogen | Continuous | 1 | 8.44mg/L | 3mg/L | 62.4t | 32.4t | 30t | | Longbai Xiangyang Titanium Industry Co., Ltd. | COD | Continuous | 1 | 11.40mg/L | 50mg/L | 61.984t | 311.5t | 0 | | Longbai Xiangyang Titanium Industry Co., Ltd. | Ammonia Nitrogen | Continuous | 1 | 1.95mg/L | 8mg/L | 10.162t | 28.248t | 0 | - The company and its subsidiaries continuously upgrade their exhaust gas and wastewater treatment systems, adopting advanced processes to ensure pollutant discharge meets standards[91][92][93] - The company and its subsidiaries hold multiple environmental impact assessment approvals and environmental acceptance certificates for construction projects, and have formulated emergency plans for environmental incidents and self-monitoring environmental programs[94][95][96][97][98][99][100][101] - During the reporting period, the company received no administrative penalties for environmental issues[101] - The company actively responds to the "dual carbon" strategy by reducing carbon emissions through industrial structure optimization and upgrading, green and low-carbon energy transition, energy saving, consumption reduction, and carbon reduction, resource recycling, and technological innovation[103][104][105][106] [Social Responsibility](index=44&type=section&id=%E4%BA%8C%E3%8