Titanium Energy Chemical Plans RMB 11 Billion Investment in Titanium Dioxide and Iron Phosphate Projects

Titanium Energy Chemical disclosed two investment plans on August 12, with a combined investment of approximately RMB 11 billion, nearly 1.4 times the company's 2025 revenue.

Zhonghe Phosphating will first receive a capital increase of RMB 400 million, with Titanium Energy Chemical and Phosphating Wanrun contributing RMB 260 million and RMB 140 million in cash respectively according to their shareholding ratios. Subsequent funding will be arranged through shareholder capital increases and project company financing. Neither announcement disclosed orders on hand or intended customers corresponding to the new capacity.

Titanium Energy Chemical reported 2025 revenue of RMB 7.784 billion and net profit attributable to shareholders of RMB 357 million; in the first half of 2026, revenue reached RMB 4.557 billion with net profit attributable to shareholders of RMB 420 million. As of end-2025, the company's design capacity for titanium dioxide stood at 700,000 tons with a utilization rate of 71.28%; iron phosphate design capacity was 100,000 tons with utilization of 41.09%. Once the new capacity comes on stream, nominal titanium dioxide capacity will increase by approximately 57%, and nominal iron phosphate capacity will rise to seven times the current level.

Industry data show that domestic titanium dioxide prices rose first and then fell in the first half of 2026. Prices climbed steadily from January to May, with a cumulative maximum increase of RMB 3,500 per ton; the market softened in mid-to-late June, with the average price from June 1 to 26 easing from RMB 17,200 per ton to RMB 16,460 per ton, a decline of approximately 4.3%. Iron phosphate prices fell to about RMB 10,000 per ton in early 2025 before recovering to approximately RMB 15,500 per ton in the first half of 2026, with capacity utilization rising above 80%.

As of the end of the first half of 2026, Titanium Energy Chemical held cash balances of RMB 7.806 billion, short-term borrowings of RMB 3.274 billion, long-term borrowings of RMB 675 million, and notes payable of RMB 2.648 billion, with a debt-to-asset ratio of 37.81%. The company's inventory balance rose from RMB 1.238 billion to RMB 1.762 billion in 2025, and further to RMB 1.988 billion by the end of the first half of 2026; notes payable increased from RMB 1.547 billion in 2024 to RMB 2.648 billion in the first half of 2026.