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Jinpu Titanium Plans to Exit Titanium Dioxide Industry, Main Business to Shift to Rubber Products

Color Masterbatch Industry Network 2025-07-17 15:20:03

On July 14, 2025, Jinpu Titanium Industry announced that it plans to acquire 100% of the equity of Nanjing Lide Oriental Rubber and Plastic Technology Co., Ltd. (hereinafter referred to as "Lide Oriental") through a major asset swap, issuance of shares, and cash payment, while also raising matching funds. This transaction marks Jinpu Titanium Industry's strategic exit from the titanium dioxide industry, with its main business changing to rubber products.

Current Status and Challenges of Titanium Dioxide Business

Since July 2013, Jinfeng Titanium Industry's main business has been the production and sales of titanium dioxide.

As one of the earliest domestic producers of titanium dioxide using the sulfuric acid method, its "Nannan" brand trademark is well-known nationwide, and its products are widely used in coatings, plastic pipes and profiles, masterbatches, and papermaking, among other fields.

However, in recent years, the industry has faced environmental pressure and overcapacity issues, coupled with weak demand in the titanium dioxide market, fluctuations in raw material prices, and high energy costs, leading to the company suffering losses for three consecutive years.

  • In the first half of 2025, the company expects to achieve a net loss attributable to shareholders of the listed company of 160 million to 186 million yuan, a year-on-year decline of 700% to 830%.

  • In 2024, the company's revenue was 2.133 billion yuan, a year-on-year decline of 5.86%; the net profit attributable to the parent company was a loss of 244 million yuan, a year-on-year decline of 39.81%.

(Kinpo Titanium Industry 2025 Half-Year Performance Forecast)

Attempts and Terminations in the New Energy Sector

In response to the difficulties in its main business, Jinfeng Titanium Industry once attempted to enter the new energy sector.

Relying on the production of iron(II) sulfate as a byproduct of titanium dioxide to prepare iron phosphate, forming a "titanium dioxide + lithium battery materials" dual-driven model.

However, in April 2025, the company announced that, after comprehensive consideration of the financial status of its wholly-owned subsidiary Nanjing Titanium Dioxide and the suspended status of the iron phosphate project, it decided to terminate the plan to jointly invest in the establishment of the joint venture company Gansu Jinlin Lithium Battery New Materials Co., Ltd. with Lanzhou Jinchuan Science and Technology Park Co., Ltd. and Gansu Nickel Capital Industry Investment Fund Partnership, completely withdrawing from the 200,000 tons/year iron phosphate project.

According to the announcement, Jinpu Titanium Industry plans to exchange part of the assets and all liabilities held by its subsidiaries Nanjing Titanium White, Xuzhou Titanium White, and Jinpu Supply Chain with the equivalent portion of the 91% equity stake in Lide Oriental held by Jinpu Dongyu.

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At the same time, the company intends to issue shares and pay cash to Jinpu Dongyu and Hengyutaihe to purchase 100% equity of Lide Dongfang held by them and the difference in the disposed assets.

Lide Dongfang Business and Financial Overview

Lide East has a registered capital of 200 million yuan and was founded in 2011. Its history can be traced back to the 415 Factory of the Logistics Department of the East China Military Region, established in 1949, and has undergone multiple reorganizations and name changes since then. The company is now an important research and production base for automotive brake hoses in China and is the designated supplier of hydraulic brake hose assemblies for national major celebration parades.

Customer coverage:

In the automotive field, the customers include domestic brand manufacturers such as FAW, Dongfeng, SAIC, GAC, BYD, Changan, Great Wall, Geely, Chery, Silis, Leap Motor, Jiangling, JAC, and Xiaopeng, as well as joint venture brand customers like Nissan, Honda, Toyota, General Motors, and Ford.

Financial data:

  • In the first three quarters of 2024, Lide Dongfang's revenue was 810 million yuan, and the net profit was 85.5257 million yuan.

  • As of the end of the third quarter of 2024, Lide Dongfang's total assets amounted to 1.196 billion yuan, and net assets were 723 million yuan.

Actual controller relationship and strategic significance:

  • According to information from the Color Masterbatch Industry Network, the actual controller of Lid Oriental, Guo Yantong, is the second daughter of Guo Jindong, the actual controller of Jinpu Titanium Industry.

  • After the completion of this transaction, Lide Dongfang will become a wholly-owned subsidiary of Jinpu Titanium Industry. The company's main business will change to the rubber products industry, with primary products including rubber hoses, seals, shock absorbers, and other rubber products.

According to official data, in the first half of 2025, China's automobile production and sales both surpassed 15 million for the first time, reaching 15.621 million and 15.653 million units, respectively, with year-on-year growth of 12.5% and 11.4%.

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