LB Group(SZ:002601) Hua Xia Shi Bao·2025-09-11 14:07Core Viewpoint - A safety incident at Longbai Group's subsidiary, Longbai Xiangyang Titanium Industry Co., Ltd., has led to a temporary shutdown for rectification, impacting the company's operations and financial performance [2][4]. Company Overview - Longbai Xiangyang is a significant subsidiary of Longbai Group, contributing 14% to the group's revenue and 12% to its net profit in 2024 [4]. - The subsidiary has a registered capital of 300 million yuan and total assets of 3 billion yuan as of the end of last year [4]. - Longbai Xiangyang has consistently distributed dividends, totaling 1.165 billion yuan from 2020 to 2024, with a recent cash distribution of 100 million yuan in March 2023 [4][5]. Incident Details - The safety incident occurred on September 2, leading to a directive from local emergency management for a temporary shutdown [2][4]. - Longbai Xiangyang is conducting a thorough safety inspection and has established a special task force for follow-up actions [4]. Financial Impact - Longbai Group's overall performance has been under pressure, with a 3.34% decline in revenue to 13.331 billion yuan in the first half of the year, and a 19.53% drop in net profit to 1.385 billion yuan [6]. - The titanium dioxide industry is facing challenges, including a decrease in export volumes and fluctuating prices, which have affected profitability [6][8]. Market Conditions - The titanium dioxide market is experiencing downward pressure due to weak demand in both domestic and export markets, with expectations of continued supply surplus [8]. - Sulfuric acid prices have been rising, increasing the overall cost burden for titanium dioxide producers [7].