Panzhihua Iron and Steel Vanadium and Titanium's non-net profit in 2021 will increase by 367.67% year-on-year, and the volume and price of vanadium and titanium products will rise

On the evening of March 28, Panzhihua Iron and Steel Vanadium Titanium released its 2021 annual report.
The company achieved operating income of 14.
06 billion yuan in 2021, a year-on-year increase of 33.
42% (after adjustment), and the net profit attributable to shareholders of the listed company was 1.
328 billion yuan, a year-on-year increase.
248.
56% (after adjustment); non-net profit attributable to shareholders of listed companies was 1.
001 billion yuan, a year-on-year increase of 367.
67% (after adjustment)
.
The company's operating income and net profit attributable to the parent have achieved substantial growth
.

For the reasons for the growth in performance, Panzhihua Iron and Steel Vanadium Titanium said that it was mainly due to the increase in sales revenue
.
During the reporting period, the main businesses of Panzhihua Iron & Steel Vanadium and Titanium include vanadium, titanium and electricity, among which vanadium and titanium are the strategic key development businesses of the company
.
The company is one of the largest vanadium producers in China and also has an important position in the domestic titanium field
.

  The annual report shows that vanadium products are mainly used in the steel industry, which is affected by the periodicity of the steel industry to a certain extent
.
In 2021, the global crude steel output will be 1.
951 billion tons, a year-on-year increase of 3.
7%.
The increase in crude steel output has also led to an increase in demand for vanadium products
.
In 2021, with the commissioning of some domestic vanadium enterprises, the production capacity of the vanadium industry will further increase, and the output of vanadium raw materials, ferro-vanadium and vanadium-nitrogen alloys will all rebound.
The total domestic output will be about 136,000 tons, an increase of about 7% over 2020
.
In the first half of 2021, relying on the increase in steel production, the price of vanadium products continued to rise.
Although the price in the second half of the year experienced a correction and shock, the price still increased compared with the beginning of the year
.

  After years of development in the vanadium, titanium and vanadium industry of Panzhihua Iron and Steel Co.
, Ltd.
and the completion of the equity acquisition of Xichang vanadium products in 2021, it has a production capacity of 40,000 tons/year of vanadium products (calculated as V2O5), accounting for about 30% of the total domestic output of vanadium products.
specific gravity
.

Pangang Vanadium and Titanium stated in its annual report that with the in-depth implementation of energy storage industry policies, it will bring great opportunities for the development of all-vanadium redox flow batteries suitable for large-scale energy storage and high safety
.

  On September 10, 2021, Pansteel Vanadium Titanium and Dalian Borong New Materials Co.
, Ltd.
signed an agreement in Panzhihua, Sichuan, valid for five years
.
The two parties have reached strategic cooperation intentions on products and services, production cooperation, platform construction, market expansion, technical cooperation and capital cooperation
.
According to the development of the energy storage industry, the two parties discussed joint investment to build a vanadium electrolyte factory and gradually expand the scale of the vanadium battery industry
.
Relying on their respective advantages, the two parties will work with relevant parties to build a shared platform and jointly promote the commercialization of the vanadium battery energy storage industry
.

  In addition to vanadium products, Panzhihua Iron and Steel Vanadium and Titanium, another main titanium product, will also see a rise in volume and price in 2021
.

  In 2021, the demand for stock houses and repainting in the domestic paint market will continue to increase.
The development of downstream real estate, decoration, automobiles and other fields is in a recovery or stable period.
The demand for titanium dioxide is stable, which is affected by rising raw material costs and good domestic and foreign market demand.
The overall domestic titanium dioxide market is on an upward trend
.
According to public information, since the second half of 2020, overseas demand for titanium dioxide has begun to recover, superimposed on the tight supply at that time, which has boosted the price of titanium dioxide
.
The price of titanium dioxide has risen from a periodic low of 12,500 yuan / ton to more than 20,000 yuan / ton, a year-on-year increase of about 60%
.
Since then, the price of titanium dioxide has remained relatively firm, fluctuating within a narrow range around 20,000 yuan/ton
.

  Referring to the advantages of titanium dioxide products, the annual report stated that the company's main raw materials, crude vanadium slag and titanium concentrate, were provided by the company's controlling shareholder, Panzhihua Iron and Steel Group.
It ensures the stable source of raw materials for the company's production
.

  Some analysts said that the downstream demand for titanium will continue to pick up, and the supply will continue to be tight.
It is expected that the price of titanium concentrate and titanium dioxide may continue to be strong
.
In 2022, the two main product markets of Pansteel's vanadium and titanium "vanadium + titanium" are expected to continue the good situation of rising volume and price in 2021, and the company's high performance growth is expected to continue
.

  In addition, with the continuous enhancement of profitability, Panzhihua Iron and Steel Vanadium Titanium also introduced equity incentives to the company's employees
.
In order to further establish and improve the company's operating mechanism, establish and improve the company's incentive and restraint mechanism, fully mobilize the company's initiative, enthusiasm and creativity, effectively combine the interests of shareholders, the company's interests and the personal interests of the core team, and form a "future-focused, A community of interests with shared interests and risks", enhance the company's competitiveness, promote the company's sustainable, steady and rapid development, and bring more lasting and rich returns to shareholders.
The third extraordinary general meeting of shareholders held in 2021 was reviewed and approved, and it was approved that the company would grant restricted shares to the incentive objects by directional issuance of 13.
28 million A shares of the company to 95 incentive objects, and the grant price was RMB 2.
08 per share
.