Core Viewpoint - Chao Yang Jin Da Titanium Industry Co., Ltd. (Jin Ti Co.) is preparing for its listing on the Beijing Stock Exchange, with a focus on high-end sponge titanium products used in aerospace and defense sectors. The company faces challenges including a significant reduction in fundraising, high levels of receivables, and low R&D investment compared to peers [1][9][18]. Group 1: Company Overview - Jin Ti Co. specializes in the research, production, and sales of sponge titanium products, with over ten years of experience in high-end applications [1]. - The actual controllers of the company are Zhao Chunlei and Wang Shuxia, who hold over 64% of the voting rights [3][4]. - The company has a history of financial issues, including a significant amount of outstanding loans exceeding 90 million yuan [5][6]. Group 2: Financial Performance - In the first three quarters, Jin Ti Co. reported revenue of 12.72 billion yuan and a net profit of 1.55 billion yuan, marking year-on-year increases of 12.43% and 52.68%, respectively [23]. - The average selling price of its main product, sponge titanium, has been declining, with prices per ton dropping from 72,600 yuan to 46,600 yuan over recent years [23][24]. - The company’s revenue from sponge titanium products accounted for over 90% of total sales, with aerospace-grade products being the primary contributor [23][24]. Group 3: Fundraising and Investment - Jin Ti Co. plans to raise 4.05 billion yuan through its IPO, a reduction of 3.45 billion yuan from the initial proposal [9][18]. - The company has faced scrutiny regarding its ability to absorb new production capacity, with a proposed expansion of 20,000 tons, which is 67% of its current capacity [11][14]. Group 4: Research and Development - The company’s R&D expenditure has been low, with a rate of around 1%, significantly lower than competitors like Baotai Co. and Longbai Group, which have rates exceeding 3% [18][21]. - Jin Ti Co. has received recognition as a high-tech enterprise, but questions remain about its ability to maintain this status given its low R&D investment and workforce composition [22][21]. Group 5: Operational Challenges - The company has high levels of accounts receivable and inventory, with accounts receivable increasing from 125 million yuan to 399 million yuan over recent years [25][26]. - Jin Ti Co. has experienced significant fluctuations in operating cash flow, with net outflows in 2022 and 2023, raising concerns about its financial stability [26].

Group 1 - Sichuan is accelerating the development and utilization of vanadium-titanium resources to transform resource advantages into development momentum during the "14th Five-Year Plan" period [1] - The province will enhance strategic supply capacity by supporting local transformation of resources and promoting projects like the vanadium extraction project by Panzhihua Steel Group and the hydrogen metallurgy project by Chuanwei Group [1] - Sichuan aims to deepen the industrial chain by supporting large-scale applications of titanium chemicals and alloys, increasing the proportion of high-end sponge titanium, and fostering new industries such as vanadium alloys and vanadium battery energy storage [1] Group 2 - The province will promote collaborative development of industries by increasing the input ratio of vanadium-titanium iron concentrate in long-process steel enterprises and supporting the flow of titanium slag by-products into the steel industry [2] - Sichuan will actively participate in the revision of relevant standards to facilitate the collaborative development of the steel and building materials industries [2]

Core Insights - Sichuan Province aims to leverage its vanadium-titanium resource advantages to accelerate the development and high-quality utilization of these resources, transforming them into development momentum [1][2] Group 1: Industry Development - Sichuan will support the construction of large-scale titanium chemical and titanium alloy application projects, increasing the proportion of high-end sponge titanium and enhancing deep processing capabilities of titanium materials and alloys [1] - The province plans to cultivate new industries such as vanadium alloys and vanadium battery energy storage, actively creating a national advanced manufacturing cluster for vanadium-titanium new materials [1] - Key technology research and application will focus on intelligent steelmaking and high-end titanium alloy wire materials, with several pilot projects for vanadium-titanium magnetite hydrogen metallurgy and titanium extraction from blast furnace slag being established [1] Group 2: Industrial Synergy - Sichuan will enhance the input ratio of vanadium-titanium iron concentrate in long-process steel enterprises and support the flow of titanium slag by-product iron water into the steel industry, promoting deep integration of "vanadium-titanium + steel" [2] - The province will participate in revising relevant standards to improve the titanium dioxide limit in blast furnace slag used for cement production, facilitating the collaborative development of the steel and building materials industries [2] - Sichuan will support the local transformation and utilization of the Hongge South vanadium-titanium magnetite resource and promote the construction of key projects like the vanadium extraction project by Panzhihua Steel Group and the hydrogen metallurgy project by Chuanwei Group [2]