Titanium energy chemical net profit increased 62% in the first half of the new energy materials into the second growth curve

In the first half of 2026, Titanium Energy Chemical achieved operating income of 4.557 billion yuan, up 20.89 percent year-on-year; net profit of 0.42 billion yuan, up 61.93 percent year-on-year; non-net profit of 0.364 billion yuan, up 65.20 percent year-on-year.

New business, new energy materials into the largest increment.

The income composition of titanium energy chemistry, the differentiation of the three curves is particularly striking.

New energy materials items achieved operating income of 0.349 billion yuan, a sharp increase of 172.82 percent over the same period last year, the fastest growing business in all sectors; phosphorus chemical items revenue of 0.443 billion yuan, an increase of 36.26 percent over the same period last year; and fine chemicals (titanium dioxide), a traditional main business, achieved revenue of 3.163 billion yuan, an increase of 4.67 percent over the same period last year, accounting to 69.41 percent of total revenue.

The explosive development of the new energy materials sector is immediately related to the harvest period of the iron phosphate project laid out many years ago.

In 2025, the output of titanium energy chemical iron phosphate will be 41100 tons and the sales volume will be 39100 tons. The items have been recognized by downstream customers and mass supply will be realized. In the first half of 2026, the iron phosphate business not only doubled its revenue scale, however also reached 15.55 gross profit margin, a significant increase of 20.77 percentage points over the same period last year, which means that the business has been substantially transferred from the previous "investment and cultivation period" to the "profit contribution period", becoming an crucial incremental source of overall profit development.

The steady development of the phosphorus chemical sector provides upstream resource support to the new energy materials business. In 2023, titanium energy chemical through the acquisition of Shuangyang phosphate rock, Guizhou Zhonghe phosphorus carbon and other high-condition assets, new phosphate rock mining and yellow phosphorus production and marketing business, to fill the gap in the upstream field of phosphorus chemical sector. From the manufacturing chain point of view, yellow phosphorus is the key raw material to the production of iron phosphate, its own phosphate resources can not only ensure the stability of supply, however also in the price fluctuation cycle to form a cost buffer. The chain of "titanium-phosphorus-new energy" is not a simple business superposition, however there is a coupling space in the raw material end, the utilization of by-items and the energy cycle.

The "sulfur-phosphorus-iron-titanium-lithium" environmentally friendly recycling sector research model mentioned many times by titanium energy chemistry is gradually being transformed into quantifiable operating results. In October 2025, its securities abbreviation was officially changed from "China Nuclear Titanium Dioxide" to "Titanium Energy Chemistry". This brand-level adjustment is essentially an external confirmation of the above-mentioned strategic transformation. This also shows that titanium energy chemistry is gradually evolving from a single titanium dioxide manufacturer to a thorough chemical enterprise with three parallel plates of titanium chemical sector, phosphorus chemical sector and new energy materials.

Practice internal skills, go to the outfield, and convert beyond production capacity.

If capacity expansion is the "bright line", then the construction of R & D system is the "dark line" to support this transformation ".

As of the end of the reporting period, titanium energy chemistry has 291 valid patents, including 50 invention patents and 236 utility model patents. In the first half of 2026, the R & D investment was 66.96 million yuan, while it was slightly reduce than the same period last year, however from 2020 to 2025, the cumulative R & D cost of titanium energy chemistry has exceeded 0.9 billion yuan, and the average annual investment is stable at about 3% of revenue. to a traditional chemical company, this investment is not low.

What deserves greater attention is the "top-level design" of its R & D system ". Titanium Energy Chemistry established the Institute of Science and methodology Innovation and hired Sun Xueliang, a foreign academician of the Chinese Academy of Engineering, as the chief scientist. Academician Sun Xueliang is a top scholar in the field of international energy materials. His team takes the lead in carrying out cutting-edge research on key materials of lithium-ion batteries, new titanium-based composite materials, key materials of photovoltaic power generation, energy storage methodology, phosphorus and carbon sector, and provides strategic advice and technical guidance to the company's "sulfur-phosphorus-iron-titanium-lithium" environmentally friendly cycle sector project.

At the sector-university-research level, Titanium Energy Chemistry has jointly established the "Gansu Titanium Dioxide environmentally friendly Manufacturing and Resource thorough Utilization methodology Innovation Center" with Lanzhou University of methodology, Anhui University of methodology, and Shenzhen University. It has also cooperated with Tsinghua University, the Institute of Process Science of the Chinese Academy of Sciences, and Germany. Ti-Cons companies have established prolonged technical cooperation relationships.

In the direction of research and research, titanium energy chemistry clearly focuses on new titanium dioxide items, new energy materials and new items, high purity and high value-added yellow phosphorus. In the field of titanium dioxide, customized items such as titanium dioxide to papermaking and titanium dioxide to color masterbatch have been recognized by high-end customers at home and abroad, and the demand has steadily increased. In the field of iron phosphate, items are being upgraded to high-purity battery grade, nano-scale ultra-fine powder and long-cycle special modification, and the manufacturing value continues to rise.

A bigger game of chess fell on Guizhou. In January 2025, Guizhou Phosphorus Chemical Group, China Nuclear Huayuan Titanium Dioxide (the predecessor of titanium energy chemistry) and China Mineral Resources signed a strategic cooperation framework agreement, planning to build a new "phosphorus titanium iron lithium" coupling cycle integration project in Kaiyang County, Guiyang City. In July 2026, the EIA information of the project will be publicized to the general. It is planned to create 600000 tons of high-performance iron phosphate, 600000 tons of high-voltage solid lithium iron phosphate and 150000 tons of battery-grade lithium carbonate. The project is built by Guizhou Phosphating Zhonghe Materials Co., Ltd., with Guizhou Phosphating Group holding 65% and Titanium Energy Chemical holding 35%.

Guizhou Phosphate Chemical Group is a leading state-owned enterprise in the domestic phosphorus chemical sector, with rich phosphate rock resources and mature phosphorus chemical sector chain, while titanium energy chemistry brings titanium dioxide by-product ferrous sulfate iron source advantages and iron phosphate production methodology. The cooperation between the two sides is essentially the complementarity of resources and methodology, and it is also an crucial attempt to titanium energy chemistry to expand from "self-built production capacity" to "manufacturing alliance.

New business is bright, old business is still in the cycle.

However, the bright performance of the new business can not completely hide the pressure on the traditional main business.

The titanium dioxide business, which accounts to nearly 70% of revenue, grew by only 4.67 in the first half of the year, and gross profit margin fell by 5.55 percentage points year-on-year. This is not a issue of titanium energy chemistry, however a portrayal of the cycle of the entire sector.

In the first half of 2026, the titanium dioxide market showed a typical "cost-driven rise" feature. According to the monitoring data of the Institute of Chemical Plastics, as of June 9, the mainstream price of domestic rutile titanium dioxide was about 16720 yuan/ton, up 20.29 percent from 13900 yuan/ton on March 1. However, the core driver of this round of price increases is not the recovery of downstream demand, however the sharp rise in the price of raw materials such as sulfuric acid.

The cost of sulfuric acid alone increased by nearly 3000 yuan per ton of sulfuric acid titanium dioxide, and the pressure on the cost side forced companies to raise prices frequently, however the price increase is often difficult to fully cover the cost increase, and the overall gross profit margin of the sector is squeezed. After entering late June, as downstream demand entered the traditional off-season, the price of titanium dioxide began to fall. In July, the lowest price of rutile titanium dioxide in the East China market fell to the range of 14800-15800 yuan/ton. The price correction further increased the uncertainty of the main business profit in the second half of the year.

In this sector context, the moderate development of titanium chemical titanium dioxide business and the decline in gross margin are greater of a mapping of the sector cycle. As a manufacturer of sulfuric acid titanium dioxide with the largest domestic production capacity, titanium chemical has a production capacity of nearly 700000 tons/year, and its production base is located in Baiyin, Gansu, Maanshan, Anhui and Jiayuguan, Gansu. This shows that it still has certain advantages in cost manage and scale effect, however it is still difficult to be immune to the cyclical adjustment of the sector as a whole. However, to truly get rid of the cycle fate of a single product and achieve the balanced research and deep coordination of the three major sectors, greater time is still needed to verify.

Transformation is like playing chess, and the middle game is the real chapter. This big game of titanium energy chemistry has just entered the stage of the most test of skill.