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    Home > Coatings News > Paints and Coatings Market > The first annual report of Anning shares: the market is improving, the production and sales growth promotes the leading operation of titanium ore, and the profit doubles

    The first annual report of Anning shares: the market is improving, the production and sales growth promotes the leading operation of titanium ore, and the profit doubles

    • Last Update: 2021-05-08
    • Source: Internet
    • Author: User
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    Prior to the news on April 15th, Anning, a leading domestic titanium mining company, released its 2020 annual report.
    In mid-April last year, Anning shares listed on the Shenzhen Stock Exchange, so this is also the first annual report released after its listing.
    Annual report data shows that in 2020 its operating income will reach 1.
    636 billion yuan, a year-on-year increase of 19.
    02%, and its parent net profit will be 701 million yuan, a year-on-year increase of 34.
    93%.
    As IPO financing has increased the equity of the company’s owners, its ROE (weighted) at the end of 2020 was 20.
    64%, a decrease of 4.
    16 percentage points from the end of the previous year.
    However, during the same period, its profit margin has increased significantly, with a gross profit margin of 64.
    53%, an increase of 4.
    35 percentage points from the previous year, and a net profit margin of 42.
    81%, an increase of 5.
    05 percentage points from the previous year.

    Prior to the news on April 15th, Anning, a leading domestic titanium mining company, released its 2020 annual report.
    In mid-April last year, Anning shares listed on the Shenzhen Stock Exchange, so this is also the first annual report released after its listing.
    Annual report data shows that in 2020 its operating income will reach 1.
    636 billion yuan, a year-on-year increase of 19.
    02%, and its parent net profit will be 701 million yuan, a year-on-year increase of 34.
    93%.
    As IPO financing has increased the equity of the company’s owners, its ROE (weighted) at the end of 2020 was 20.
    64%, a decrease of 4.
    16 percentage points from the end of the previous year.
    However, during the same period, its profit margin has increased significantly, with a gross profit margin of 64.
    53%, an increase of 4.
    35 percentage points from the previous year, and a net profit margin of 42.
    81%, an increase of 5.
    05 percentage points from the previous year.

    Anning's 2020 profit distribution plan is to distribute a cash dividend of 5 yuan for every 10 shares, a total cash dividend of 201 million yuan, and a dividend rate of 28.
    62%.
    A few days after the release of the annual report, Anning released its performance forecast for the first quarter of this year, with an expected performance increase of 77.
    74% to 93.
    43%.

    Anning's 2020 profit distribution plan is to distribute a cash dividend of 5 yuan for every 10 shares, a total cash dividend of 201 million yuan, and a dividend rate of 28.
    62%.
    A few days after the release of the annual report, Anning released its performance forecast for the first quarter of this year, with an expected performance increase of 77.
    74% to 93.
    43%.

    Anning Co.
    , Ltd.
    , its full name is Sichuan Anning Iron Titanium Co.
    , Ltd.
    , and its predecessor was Panjiatian Minerals Co.
    , Ltd.
    , a Chengdu Seamless Steel Pipe Company established in 1994.
    In 1997, it was renamed Miyi County Anning Iron Titanium Co.
    , Ltd.
    , and in 2008, the current listed entity Anning Shares was changed and established.
    The actual controller of the company is Luo Yangyong, and his personal control of Anning shares currently exceeds 70%.

    Anning Co.
    , Ltd.
    , its full name is Sichuan Anning Iron Titanium Co.
    , Ltd.
    , and its predecessor was Panjiatian Minerals Co.
    , Ltd.
    , a Chengdu Seamless Steel Pipe Company established in 1994.
    In 1997, it was renamed Miyi County Anning Iron Titanium Co.
    , Ltd.
    , and in 2008, the current listed entity Anning Shares was changed and established.
    The actual controller of the company is Luo Yangyong, and his personal control of Anning shares currently exceeds 70%.

    Anning's main business is the mining, selection and sales of vanadium-titanium magnetite.
    It is one of the major domestic companies in this industry and has certain pricing power in the sales market of its main product titanium concentrate.
    At present, the mining right of Panjiatian Iron Mine is the main mineral resource that it owns, with a reserves of 296 million tons.
    In 2020, Anning Co.
    , Ltd.
    produced 537,600 tons of titanium concentrate, while the national output of titanium concentrate in 2020 is about 5.
    45 million tons.
    It is also the largest supplier of titanium concentrate in China.

    Anning's main business is the mining, selection and sales of vanadium-titanium magnetite.
    It is one of the major domestic companies in this industry and has certain pricing power in the sales market of its main product titanium concentrate.
    At present, the mining right of Panjiatian Iron Mine is the main mineral resource that it owns, with a reserves of 296 million tons.
    In 2020, Anning Co.
    , Ltd.
    produced 537,600 tons of titanium concentrate, while the national output of titanium concentrate in 2020 is about 5.
    45 million tons.
    It is also the largest supplier of titanium concentrate in China.



    Charting: Research Institute of Listed Companies in the Financial Industry Source: Financial Report of Anning Shares

    Charting: Research Institute of Listed Companies in the Financial Industry Source: Financial Report of Anning Shares

    In the past two years, Anning shares have seen continuous revenue and performance growth, and the growth rate has also shown an expanding trend.
    At the same time, its profit margin level has also seen a big improvement in 2020.
    On the whole, this round of profit growth of Anning shares was formed by the combination of a favorable external industry market environment and the improvement of internal operating efficiency.

    In the past two years, Anning shares have seen continuous revenue and performance growth, and the growth rate has also shown an expanding trend.
    At the same time, its profit margin level has also seen a big improvement in 2020.
    On the whole, this round of profit growth of Anning shares was formed by the combination of a favorable external industry market environment and the improvement of internal operating efficiency.

    Beginning in 2017, China's supply-side reform has entered the deep water area, which has also had a greater impact on the domestic mining industry.
    In the industry where Anning shares are located, small vanadium-titanium magnetites that fail to meet safety and environmental protection standards have ceased production, and the price of titanium concentrates has risen sharply.
    This has provided greater support to Anning's revenue and performance growth.

    Beginning in 2017, China's supply-side reform has entered the deep water area, which has also had a greater impact on the domestic mining industry.
    In the industry where Anning shares are located, small vanadium-titanium magnetites that fail to meet safety and environmental protection standards have ceased production, and the price of titanium concentrates has risen sharply.
    This has provided greater support to Anning's revenue and performance growth.

    As far as titanium concentrate is concerned, there is still a big gap between domestic production and demand.
    Anning shares mentioned in its annual report that in 2020, the domestic production of titanium concentrate for titanium dioxide is about 8.
    096 million tons.
    Coupled with the demand for titanium concentrates such as sponge titanium, the annual demand for titanium ore is expected to be about 8.
    2 million tons, while the same period The national titanium concentrate output is 5.
    45 million tons, and the import demand is large.

    As far as titanium concentrate is concerned, there is still a big gap between domestic production and demand.
    Anning shares mentioned in its annual report that in 2020, the domestic production of titanium concentrate for titanium dioxide is about 8.
    096 million tons.
    Coupled with the demand for titanium concentrates such as sponge titanium, the annual demand for titanium ore is expected to be about 8.
    2 million tons, while the same period The national titanium concentrate output is 5.
    45 million tons, and the import demand is large.

    In 2020, due to the impact of the new crown pneumonia epidemic, the tightening of overseas supply of titanium ore, coupled with the steady increase in demand for titanium dioxide, will cause the price of titanium concentrate to rise again, with an annual increase of about 60%.

    In 2020, due to the impact of the new crown pneumonia epidemic, the tightening of overseas supply of titanium ore, coupled with the steady increase in demand for titanium dioxide, will cause the price of titanium concentrate to rise again, with an annual increase of about 60%.

    In terms of internal operations, the "Vanadium-Titanium Magnetite Quality and Efficiency Improvement Project" funded by it has a great impact on the development of Anning.
    With the implementation of the quality improvement and efficiency project, the grade of Anning's vanadium-titanium iron concentrate products will be increased from 55% to 61% from 2020.
    The increase in grade has greatly increased the sales price and gross profit rate of the product, and increased vanadium and titanium.
    The contribution of iron ore concentrates to profits has improved its overall profitability.
    Currently, in Panxi area, only Anning Co.
    , Ltd.
    can produce high-grade vanadium-titanium concentrate.

    In terms of internal operations, the "Vanadium-Titanium Magnetite Quality and Efficiency Improvement Project" funded by it has a great impact on the development of Anning.
    With the implementation of the quality improvement and efficiency project, the grade of Anning's vanadium-titanium iron concentrate products will be increased from 55% to 61% from 2020.
    The increase in grade has greatly increased the sales price and gross profit rate of the product, and increased vanadium and titanium.
    The contribution of iron ore concentrates to profits has improved its overall profitability.
    Currently, in Panxi area, only Anning Co.
    , Ltd.
    can produce high-grade vanadium-titanium concentrate.

    In addition, it can be seen from the change in the expense ratio of Anning shares that its internal control management has also been greatly strengthened after its listing, and the cost efficiency has improved significantly.
    Among them, the overall expense ratio during the sales period was 12.
    92% in 2020, a decrease of 4.
    51 percentage points from the previous year.
    Taken apart, its sales expense ratio has dropped the most significantly, from 7.
    75% of revenue in the previous year to 5.
    75% in 2020.

    In addition, it can be seen from the change in the expense ratio of Anning shares that its internal control management has also been greatly strengthened after its listing, and the cost efficiency has improved significantly.
    Among them, the overall expense ratio during the sales period was 12.
    92% in 2020, a decrease of 4.
    51 percentage points from the previous year.
    Taken apart, its sales expense ratio has dropped the most significantly, from 7.
    75% of revenue in the previous year to 5.
    75% in 2020.

    However, looking at the development of Anning shares after its listing on the other hand, there are also bottlenecks in operating extension and business scale expansion.
    Since 2018, its ROE and ROA have been declining, which clearly reflects the decline in the efficiency of capital gains, and also shows its lack of breakthrough directions and new growth points.
    At the end of 2020, its cash and cash equivalents balance was 1.
    107 billion yuan, a year-on-year increase of 316.
    4%.
    The overall liabilities totaled 728 million yuan, a year-on-year increase of 4.
    17%.
    The total assets of construction in progress were only 17 million yuan.
    The investment cash flow was due to purchases.
    The cash outflow of fixed assets, intangible assets and other long-term assets was 92 million yuan, a year-on-year decrease of 19.
    62%.

    However, looking at the development of Anning shares after its listing on the other hand, there are also bottlenecks in operating extension and business scale expansion.
    Since 2018, its ROE and ROA have been declining, which clearly reflects the decline in the efficiency of capital gains, and also shows its lack of breakthrough directions and new growth points.
    At the end of 2020, its cash and cash equivalents balance was 1.
    107 billion yuan, a year-on-year increase of 316.
    4%.
    The overall liabilities totaled 728 million yuan, a year-on-year increase of 4.
    17%.
    The total assets of construction in progress were only 17 million yuan.
    The investment cash flow was due to purchases.
    The cash outflow of fixed assets, intangible assets and other long-term assets was 92 million yuan, a year-on-year decrease of 19.
    62%.

    In the future, how to find a development direction, break through the cyclical risk problem of the resource-based industry, and convert cash and other capital into more efficient and profitable businesses and assets is the main challenge facing Anning shares and whether it can make a leap from a local mining company.
    Main development opportunities.

    In the future, how to find a development direction, break through the cyclical risk problem of the resource-based industry, and convert cash and other capital into more efficient and profitable businesses and assets is the main challenge facing Anning shares and whether it can make a leap from a local mining company.
    Main development opportunities.
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