Group 1: Company Overview and Products - The company produces a range of vanadium products including vanadium pentoxide, high-vanadium iron, vanadium-nitrogen alloy, and vanadium-aluminum alloy, with an annual production capacity of 185,000 tons of titanium concentrate and 30,000 tons of vanadium products (measured as V2O5) [2][3] - Titanium products include titanium dioxide and titanium slag, with a comprehensive production capacity of 24,000 tons [2] Group 2: Key Projects and Innovations - The company has a 60,000-ton molten salt chlorination titanium dioxide production line, a key project in Sichuan, utilizing local titanium slag and achieving cost-effective resource utilization [4] - The all-vanadium redox flow battery offers advantages such as high power, large capacity, long lifespan, and safety, suitable for large-scale energy storage [4] Group 3: Strategic Partnerships - Since signing a strategic cooperation agreement with Dalian Rongke in September 2021, the company has established a joint venture for a 2,000 cubic meters/year vanadium electrolyte production line, which is operating effectively [4] - In 2024, the company plans to supply approximately 15,000 tons of vanadium products to Dalian Rongke, accounting for 28% of the total vanadium product sales for that year [4] Group 4: Market Response and Performance Improvement Measures - The company is actively sourcing social resources to maximize vanadium product line capacity and is pushing for timely production ramp-up of new titanium dioxide lines [5] - It conducts market research to adjust production based on demand, optimizing product mix to enhance overall profitability [5] - Cost control measures are implemented to reduce manufacturing costs of vanadium and titanium products, while maintaining and expanding sales channels to alleviate sales pressure [5]

Group 1: Company Products and Production Capacity - The company produces a range of vanadium products including vanadium pentoxide, ferrovanadium, vanadium-nitrogen alloy, vanadium-aluminum alloy, and vanadium electrolyte, with an annual production capacity of 44,200 tons of vanadium products (measured in V2O5) [2] - The titanium series products include titanium dioxide and titanium slag, with an annual production capacity of 300,000 tons of titanium dioxide and 240,000 tons of titanium slag [2] - The products are widely used in industries such as steel, energy storage, non-ferrous metals, and coatings [2] Group 2: Raw Material Supply and Pricing - The main raw materials, titanium concentrate and crude vanadium slag, are sourced from the controlling shareholder, Panzhihua Steel Group, ensuring stable supply [2] - The pricing for crude vanadium slag is based on a cost-plus reasonable profit model [2][3] Group 3: Vanadium Energy Storage Business - The company is expanding its applications in non-steel sectors, particularly vanadium energy storage, through a strategic partnership with Dalian Rongke, a leader in the domestic vanadium energy storage field [4] - A joint venture is established to build a 2,000 cubic meters/year vanadium electrolyte production line, with a cumulative supply of over 20,000 tons of vanadium products to Dalian Rongke from 2021 to 2024 [4] Group 4: Titanium Dioxide Production Line - The 60,000 tons molten salt chlorination production line is a key project in Sichuan, utilizing titanium slag produced from local titanium concentrate [5] - The company has developed proprietary technology for low-grade titanium slag processing, leading to stable production and decreasing costs since 2025 [5] Group 5: Dividend Policy - The company currently does not meet the conditions for dividend distribution due to existing unabsorbed losses, but aims to improve operations to restore dividend eligibility as soon as possible [6]

Product Overview - The company produces a range of vanadium products including vanadium pentoxide, ferrovanadium, vanadium-nitrogen alloy, vanadium-aluminum alloy, and vanadium electrolyte, with an annual production capacity of 44,200 tons of vanadium products (measured as V2O5) [2][3] - Titanium products include titanium dioxide and titanium slag, with an annual capacity of 300,000 tons of titanium dioxide and 240,000 tons of titanium slag [2][3] Raw Material Supply and Pricing - The main raw materials, titanium concentrate and crude vanadium slag, are sourced from the controlling shareholder, Panzhihua Steel Group, ensuring stable supply [4] - Pricing for crude vanadium slag is based on a cost-plus model, while titanium concentrate is procured partially through market-based pricing [4] Performance Improvement Strategies - The company has implemented cost reduction and efficiency enhancement measures, including pressure on procurement and optimizing product mix based on market demand [5] - Continuous maintenance and expansion of sales channels, with a focus on both existing and new customers to alleviate sales pressure [5] Technological Advancements - The company has developed a 60,000-ton molten salt chlorination titanium dioxide production line, which utilizes low-grade titanium slag from the Panzhihua region, enhancing cost-effective resource utilization [6] Strategic Partnerships - Since signing a strategic cooperation agreement with Dalian Rongke in September 2021, the company has established a joint venture for a 2,000 cubic meter/year vanadium electrolyte production line, which has been operating effectively [7] - In 2024, the company plans to supply approximately 15,000 tons of vanadium products to Dalian Rongke, accounting for 28% of its total vanadium product sales for the year [7][8]

Investment Rating - The report initiates coverage with a "Buy" rating for the company [6][55]. Core Views - The company's performance in 2024 was negatively impacted by a decline in vanadium product prices, leading to a revenue drop of 8.15% year-on-year to CNY 13.209 billion and a significant net profit decrease of 73.03% to CNY 285 million [10][55]. - The company is a major global supplier of vanadium products and has a strong production capacity, which positions it well for future growth as the vanadium industry recovers and the vanadium battery market expands [3][55]. Summary by Sections Financial Performance - In 2024, the company achieved a revenue of CNY 132.09 billion, down 8.15% year-on-year, and a net profit attributable to shareholders of CNY 2.85 billion, down 73.03% [10]. - The fourth quarter of 2024 saw a revenue of CNY 27.35 billion, a year-on-year decrease of 15.16% and a quarter-on-quarter decrease of 17.52% [10]. - The sales volume of vanadium products increased by 6.74% to 53,600 tons, while titanium dioxide sales grew by 1.10% to 258,000 tons, and titanium slag sales fell by 24.18% to 146,100 tons [19]. Price and Margin Analysis - The company's gross margin decreased by 6.81 percentage points to 7.59% in 2024, with vanadium product prices dropping by 26% year-on-year [2][19]. - The gross margin for vanadium products fell by 17.05 percentage points to 10.40%, while titanium products saw a slight margin decline [2]. Future Outlook - The company is positioned as a leading global supplier of vanadium products, with a comprehensive production capacity that includes 442,000 tons of vanadium products and 300,000 tons of titanium dioxide annually [3]. - The vanadium battery business is expected to be a significant growth driver, with a partnership established to supply 20,000 tons of ammonium vanadate in 2025, representing a 35% increase from 2024 [44]. - A new 60,000-ton molten salt chlorination titanium dioxide project was launched in 2024, enhancing the company's market influence [4]. Earnings Forecast - The company is projected to achieve net profits of CNY 5.92 billion, CNY 7.83 billion, and CNY 9.32 billion from 2025 to 2027, with corresponding price-to-earnings ratios of 40, 30, and 26 [55]. - Revenue is expected to grow to CNY 138.7 billion in 2025, with a year-on-year growth rate of 5% [54].