Event Description Recently, overseas titanium dioxide giant Kronos and Tronox released the second quarter of 2014: Tronox's single-quarter net profit of 2 million US dollars in the second quarter of 2014 was lower than the same period in 2013; Kronos' single-quarter net profit was $33.1 million, which was a sharp turnaround from the same period in 2013.

Event Review Kronos's operating rate reached new heights: After operating for 4 consecutive quarters of decline in 2013, Connors' titanium dioxide utilization rate rebounded strongly after 2014, and the operating rate in the second quarter increased compared to the first quarter. % to 97%, close to full production; last year's Canadian factory ** impacted the production of the first two months of the year, bringing the overall sales volume in the first half down by about 7%; according to the company's report that the same industry and downstream customers' inventory are already in At a very low level, the company is optimistic that product prices will show renewed growth in 2014. Teno's sales are up 11% year-on-year. Benefited from the strong recovery in the North American coatings and construction market, Teno's sales of titanium dioxide increased by 11% year-on-year and 13% from the previous quarter. The company's inventory has been declining, and the operating rate has remained at a high of over 80%. The company has shown a good trend of product sales over production for three consecutive quarters. At the same time, the significant improvement in the company's earnings also comes from the gradual depletion of high-value mine stocks to reduce the company's operating burden.

Global industry improvement is expected to further boost the profitability of domestic titanium dioxide enterprises: From the performance of international titanium dioxide giants, the recovery of overseas industry demand, the recovery of industry profits, also verify the overseas economy is good; the global trend in the domestic titanium dioxide industry continues Under the enhanced background, we believe that the third quarter peak season will further drive domestic product exports to remain at a high level, and the industry's prosperity will rise. Due to the large price difference between domestic and foreign products, it provides room for the continuous improvement of corporate profits.

Once again, we reiterated our concern about investment opportunities in the titanium dioxide industry: From the perspective of overseas companies' operating conditions, the industry trend continues to improve, and domestic companies have also benefited from the recovery of overseas economies. Product prices have continued to rise since April. We believe that with the improvement of the supply and demand structure and the arrival of the sales season, there is still room for price increase. It is proposed to actively pay attention to the recovery of the industry. The relevant companies, Lily Union, Annada, CNI Titanium Dioxide and Jinpu Titanium