Friday, August 26, 2011

Annada's Profit Nearly Triples in H1 2011

On 16 August 2011, Anhui Annada Titanium Industry Co., Ltd. (Annada) reported strong financial results in H1 2011. Its revenue was USD56 million, increasing by 42.70% over the same period last year. Annada's profit reached USD6 million, nearly doubled that of H1 2010. The high revenue and profit growth are mainly due to higher TiO2 selling prices and optimized product structure, according to CCM’s August issue of TiO2 China Monthly Report.

Annada has taken the advantage of global economic recovery and strong demand of TiO2, overcoming the adverse effect of continually rising feedstock prices by increasing product prices in time. The revenue of rutile TiO2 increased by 79.18% thanks to higher prices and sales volume. The gross profit margin of both anatase TiO2 and rutile TiO2 increased by 4.42% year on year.

In H1 2011, the company's product structure was further optimized. The proportion of high-profit rutile TiO2 sales in total revenue increased from 64.54% in H1 2011 to 80.90%, while the proportion of anatase TiO2 sales in total revenue decreased from 35.46% in H1 2010 to 19.10%.

In the same period, Annada has further improved its sales network. As a result, its revenue in the markets of northeastern of China and South China increased and the revenue consolidated in East China market. What's more, the proportion of exports has increased substantially.

On 18 Feb. 2011, Annada issued 28,590 thousand shares through non-public offering to seven specific investors, including its parent company Tongling Chemical Industry Group Co., Ltd. (Tonghua Group), in order to raise fund for its 40,000t/a rutile TiO2 technical renovation project.

Annada expects its revenue and profit continue to grow in the second half of 2011, and estimates year-on-year profit increase will be in the range of 190% to 240% in the first nine months of 2011.
(Guangzhou China, August 26, 2011)

Content of TiO2 China Monthly Report 1108:
China's TiO2 average export price exceeds import price
China's titanium feedstock import volume rebounds in June
Iluka to resume its Eneabba mining activities
ERAMET, MDL to set up a joint venture
Base reports good progress on Kwale Project
Huntsman Pigments' Q2 adjusted EBITDA up 135%
Rockwood TiO2 segment enjoys strong results
Kronos TiO2 segment's profit up 257% in Q2 2011
DuPont's revenue up 19% on higher prices
Jiangxi Tianguang's new project meets requirements
Jilin Fiber faces challenges in 2011
Sanxia Paint's profit down 21.2% in H1 2011
Wuhan Plastics reports strong profit growth
Dow's profit increases by 55.7% in H1 2011
AkzoNobel to set coating base in western China
China's TiO2 price declines in August
TiO2 multinationals announce new round of price hikes

Editor’s Note
China's CPI reached record 6.5% in July 2011, indicating that the inflation hasn't been tackled yet. But the PMI in July declined to 50.7%, reaching the lowest in 29 months.

Domestic TiO2 prices started to decrease in August 2011, as China's TiO2 producers have been depressed by the weak demand in June and July. Most producers have benefited from price upsurge in H1 2011, but they may lower their expectations in the second half this year.

The TiO2 downstream companies saw profit decrease in H1 2011, as the costs of TiO2 and other raw materials increased largely in this period.

In order to regulate the coating market, 14 national mandatory standards regarding to coatings have been implemented since 1 August 2011.

As for titanium feedstock, major foreign suppliers took measures to increase production.

TiO2 China Monthly Report, a monthly publication issued by CCM International on 25th of every month, will penetrate into Chinese TiO2 market from a global view, deeply analyse TiO2 industrial chain and manufacturers’ competitiveness and trace the latest industrial hotspots and dynamics, aiming to provide the most valuable information about China’s TiO2 industry.

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