200,000 tons of titanium dioxide project put into operation Kuncai Technology first half revenue of 295 million yuan

Kuncai Technology released its semi-annual report on the evening of August 22nd, reporting operating income of RMB295 million in the first half of 2019,
an increase of 2.49% over the same period last year, and
realizing net profit attributable to shareholders of listed companies of RMB81.351 million, down 8.84% from a year earlier.
believes that the first half of the net profit attributable to shareholders of the parent company decreased by 789.03 million yuan, or 8.84 percent, from a year earlier due to marketing for four main reasons.
This includes a decrease in government subsidy income in the first half of the year resulting in a decrease of $9.4561 million in other income compared with the previous year, and a decrease in
exchange income and an increase in interest expense on loans resulting in an increase in financial expenses of $4.7457 million over the previous year;
and the decline in financial management income from raising funds led to a decrease of 3.1642 million yuan in investment income compared to the previous year,
In addition, the company to expand business and titanium dioxide, iron oxide sales preparation, sales staff increased compensation and travel expenses and new product sample costs increased sales costs of 3.0137 million yuan, a total impact on the total profit of 20.3797 million
Kun Cai Technology said that in the first half of 2019, the external political and economic environment is complex, the domestic economy is still facing greater downside pressure, in the face of international trade friction, raw material prices and many other adverse conditions, the company's board of directors and management adhere to technology research and development-based, cost-effectiveness as the framework, optimize production processes, control production costs.
Kun Cai Technology was established in 2005 and launched in April 2017, with its main business in the research and development, production and sales of pearl materials.
In recent years, the company's revenue and profits have maintained a steady growth trend, including revenue of 587 million yuan in 2018, up 25.1% YoY, attributable to net profit of 180 million yuan, up 52.7% YoY, mainly due to high-end product growth and lower financial expenses.
public information shows that in 2019, with the full completion and production of the investment project, Kun Cai Technology currently has an annual output of 30,000 tons of pearl materials, an annual output of 10,000 tons of synthetic mica production capacity, becoming the world's largest pearl materials production enterprises.
According to the data, the annual global demand for pearl materials is expected to be about 100,000 tons, of which Kuncai 2018 sales of about 16,000 tons, corresponding to the global market share of about 15%, coupled with new production capacity in 2019, the total production capacity of 30,000 tons / year, will be ranked first in the world
It is learned that at present, more than 20 domestic pearl materials production enterprises, most enterprises concentrated in the low-end market, the global high-grade pearl materials research and development, production monopoly in Merck, BASF, Kuncai technology hands, forming a strong competitive advantage.
It is worth mentioning that on August 16, Kuncai Technology Jiangyin Industrial Park is too annual output of 500,000 tons of titanium dioxide, 500,000 tons of iron oxide project started and Fushi annual output of 200,000 tons of titanium dioxide project officially put into operation, will become a major new source of income.
industry believes that, on the basis of industrial upgrading and adequate market demand, 200,000 tons of titanium dioxide production will help enterprises to reduce their efficiency at the same time, and further explore the future space.Xie Bingkun, chairman and general manager ofKunCai Technology, said that Kuncai Technology is the world's first and only enterprise using extraction method to produce high-purity titanium dioxide, iron oxide, and obtained the first set of process technology certification, has obtained more than a dozen global invention patents.
Kuncai Science and Technology Jiangyin Industrial Park is planned to build an annual output of 500,000 tons of automobile-grade, cosmetic-grade titanium dioxide and iron oxide, becoming China's largest high-end titanium chloride, iron oxide research and development, production and sales integration of enterprises, up to the post-partum annual sales revenue of about 25 billion yuan, annual tax revenue of about 2 billion yuan., China introduced the first generation of titanium dioxide technology from abroad in the 1970s, nearly 50 years ago, but the key product technology compared with Japan, Germany still exists a gap.
in the past ten years has introduced the second generation of foreign chlorination production of gold-redstone titanium dioxide powder is still immature, the product has a large difference, can only be used in the low-end field.
, said the third generation of technology independently developed by Kuncai Technology was "born" in China. public information shows that the main cost of Kun Cai technology is mica film and titanium tetrachloride, mica film cost accounted for 30% to 40%, titanium tetrachloride cost accounted for about 30%.
company's titanium tetrachloride procurement from the domestic, industry analysts believe that in 2018 with the strict control of environmental protection, titanium tetrachloride in short supply situation, the annual price increase of 20%-30%.
if the direct production of titanium dioxide can replace titanium tetrachloride, to avoid the impact of price increases, to achieve cost-effectiveness.