Core Viewpoint - Anada, a leading titanium dioxide producer, reported a net loss of 26.27 million yuan in the first half of 2025, marking a significant decline in both revenue and profit margins due to intensified market competition and reduced demand in the real estate sector [1][4]. Financial Performance - The company's total revenue for the first half of 2025 was 876 million yuan, a decrease of 10.51% year-on-year [1][8]. - The net profit turned into a loss of 26.27 million yuan, representing a year-on-year decline of 158.08% [1]. - Revenue from titanium dioxide products was 575 million yuan, accounting for 65.61% of total revenue, down 19.65% year-on-year [6][8]. - The gross margin for titanium dioxide products fell by 8.49 percentage points to 3.05% [6]. Product Overview - Anada's main products are titanium dioxide and iron phosphate, with titanium dioxide being the primary revenue driver [2][3]. - Titanium dioxide is crucial for various industries, with 60% of its demand coming from the coatings sector, closely linked to the real estate and automotive industries [3]. - Iron phosphate, primarily used in lithium iron phosphate battery materials, has seen a revenue increase of 4.23% year-on-year, but its gross margin has dropped to -6.23% [6][9]. Market Conditions - The titanium dioxide market experienced a "high-to-low" price trend, with prices peaking in early 2025 before declining due to reduced market demand and increased inventory pressure [6][7]. - The real estate sector's downturn has led to a contraction in demand for construction coatings, further impacting titanium dioxide sales [4]. Competitive Landscape - The iron phosphate market has become increasingly competitive, with many titanium dioxide producers entering the sector, leading to oversupply and declining prices [9]. - Iron phosphate prices have fallen from 15,000-18,000 yuan per ton at the beginning of 2023 to 10,000-11,500 yuan per ton in 2025, affecting profitability [9]. Strategic Response - Anada plans to closely monitor national policies and industry trends to enhance market analysis and optimize product structure in response to the challenging market environment [9].