Core Viewpoint - Jinpu Titanium Industry is undergoing a significant asset restructuring by divesting its titanium dioxide assets and acquiring controlling stakes in Nanjing Lide Oriental Rubber and Plastic Technology Co., marking a strategic shift towards the high-growth automotive and rail transportation components sector [1] Group 1: Industry Context - The titanium dioxide market is facing challenges due to weak demand influenced by the real estate sector, leading to price declines and cost pressures [1] - The average market price for titanium dioxide in China is estimated at 14,425 yuan per ton, reflecting an 11% decrease compared to the same period last year [1] - China's reliance on titanium dioxide exports is significant, with nearly 40% of exports affected by anti-dumping measures from major trading partners [1] Group 2: Lide Oriental's Strengths - Lide Oriental is a leading application research and development platform in the rubber new materials sector, with a comprehensive product system covering various applications including automotive and rail transportation [2] - The company is recognized as a hidden champion in the automotive brake hose sector, with its products used in 50% of cars and 70% of high-speed trains [2] - Lide Oriental has received numerous accolades, including being a certified "specialized, refined, distinctive, and innovative" small giant by the Ministry of Industry and Information Technology [2] Group 3: Financial Performance and Growth - Lide Oriental's sales revenue is projected to exceed 1 billion yuan in 2024, with a strong growth trajectory expected to reach 1.5 billion yuan in 2025 [3] - The company achieved 400 million yuan in sales revenue in the first quarter of 2025, indicating robust demand, particularly from the new energy vehicle sector [3] Group 4: Technological Innovation - Lide Oriental emphasizes product research and innovation, with over 100 R&D personnel and multiple partnerships with prestigious research institutions [4] - The company holds 178 authorized patents, including 71 invention patents, and has played a significant role in formulating national and industry standards [4] Group 5: Strategic Implications for Jinpu Titanium Industry - The asset restructuring is expected to significantly improve Jinpu Titanium's financial performance, transitioning from a loss of 24.4 million yuan in 2024 to potentially benefiting from Lide Oriental's growth [7] - The restructuring aligns with national industrial policies, as the special rubber sector is experiencing accelerated domestic substitution [7] - The partnership with Lide Oriental is anticipated to enhance Jinpu Titanium's competitiveness and sustainable development capabilities, leveraging Lide Oriental's strong market position and growth potential [7]