The first phase of the project has been slow to reach production. Kun Color Technology has launched another 600000 tons of titanium dioxide project.

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Prior to the 200000 tons of titanium dioxide (commonly known as "titanium dioxide") project has not yet reached production, Kuncai Technology (603826.SH) new project will be launched. On the evening of December 6th, the company announced that "in order to make full use of existing land resources and expand the advantage of production capacity", the company plans to invest in the construction of a new project with an annual output of 600000 tons of titanium dioxide. the project includes an additional annual production of 600000 tons of titanium dioxide and 600000 tons of iron oxide, with a construction period of 36 months.

In the announcement, Kuncai Technology has completed the trial production of the first phase of titanium dioxide project with an annual output of 200000 tons, and the production capacity will be gradually released after the project acceptance and production license procedures. However, it is clearly too late for investors.

According to the 2019 annual report of Kuncai Technology, the subsidiary Zhengtaixin Materials' annual output of 100000 tons of high-end titanium dioxide project will start construction in the second half of 2019, and plan to put into production the first production line of 100000 tons of high-end titanium dioxide and 100000 tons of high-end iron trioxide in August 2020. at the same time, the second production line of 100000 tons of high-end titanium dioxide and 100000 tons of high-end iron trioxide will be completed, which is expected to be put into production in December 2020.

According to the information disclosed by Kuncai Technology in its 2020 annual report, the planned production date of the above-mentioned 200000 tons of high-end titanium dioxide and iron oxide projects has been adjusted to May 2021, at least five months later than expected in the 2019 annual report. However, in the semi-annual report of 2021, the construction progress of the above project was updated as "the project has completed trial production" and "capacity is expected to be gradually released in the second half of the year". The production time has been delayed again, and Kuncai Technology has been "hit in the face" again.

For reasons such as the frequent postponement of the first phase of the titanium dioxide project and the current production situation, a reporter from the Financial Associated Press called the Kuncai Technology Securities Department on the morning of December 7, but the phone could not be reached. On the other hand, there is news in the market that it is suspected that it is related to the operational safety accident of Zhengtaixin material. A fall occurred at the factory site of Zhengtaixin material Technology Co., Ltd., Jiangyin Port City Economic Zone on December 9, killing one person, according to the official website of the Fuqing Municipal people's Government on December 31.

It is worth noting that, unlike the delay in capacity release caused by lower-than-expected demand, the popularity of titanium dioxide in the market is obvious to all. Due to the tight relationship between supply and demand of titanium dioxide, titanium dioxide manufacturers such as 002145 SZ, 002601.SZ and 300891.SZ have raised the price of titanium dioxide for many times.

According to the third quarterly report, the net profit of China Nuclear Titanium White was 1.001 billion yuan, an increase of 181.37% over the same period last year. 002136.SH 's net profit was 129 million yuan, an increase of 152.55% over the same period last year. The industry leader Longbai Group made a net profit of 3.83 billion yuan, an increase of 96.48% over the same period last year. The net profit of vanadium titanium (000629.SZ) of Panzhihua Iron and Steel Co., Ltd. is 782 million yuan, up 311.49% from the same The net profit of Huiyun Titanium Industry was 173 million yuan, an increase of 168.77% over the same period last year, while that of Jinpu Titanium Industry (000545.SZ) was 157 million yuan, an increase of 393.83% over the same period last year. All the companies have performed well.

The main business of Kuncai Technology is the research and development, production and sales of pearlescent materials. For entering the titanium dioxide industry, the company said that titanium dioxide, iron oxide and pearlescent materials are all inorganic pigments. Pearlescent mature sales channels can be used to share the existing customer base with the company, with a high degree of synergy.

According to the statistics of the head titanium dioxide enterprise production capacity of the Financial Associated Press reporter, as of the half-yearly report of 2021, the annual production capacity of titanium dioxide of Longbai Group is 1.01 million tons, which is the leading enterprise of titanium dioxide in China, and its production capacity ranks first in Asia and third in the world. The annual production capacity of titanium dioxide in China is 400000 tons, and its production capacity ranks second in China and sixth in the world. This means that if Kun Cai Technology reaches production capacity of 600000 tons of titanium dioxide, its total production capacity of 800000 will be enough to enter the first echelon.

At the same time, more than 2021 titanium dioxide enterprises layout ferric sulfate production capacity.