Pangang Group Vanadium & Titanium Resources (000629) Q2 2024 earnings summary

Executive summary

• Revenue for H1 2024 was ¥7.16 billion, down 6.16% year-over-year, mainly due to lower vanadium prices.

• Net profit attributable to shareholders was ¥137 million, a 77.23% decrease compared to H1 2023.

• Cash flow from operating activities improved to ¥385 million, up 274.49% year-over-year.

• Vanadium output increased 6.02% year-over-year, while titanium dioxide and slag output declined.

• Company remains a leading vanadium and titanium supplier in China, with strong R&D and integrated value chain.

Financial highlights

• Revenue: ¥7.16 billion, down 6.16% year-over-year.

• Net profit: ¥137 million, down 77.23% year-over-year.

• Gross margin for vanadium: 9.39%; titanium: 7.09%; electricity: 2.37%.

• Basic and diluted EPS: ¥0.0154, down 78.06% year-over-year.

• Operating cash flow: ¥385 million, up from -¥220 million in H1 2023.

Outlook and guidance

• Vanadium demand expected to rise in H2 2024 due to new standards and energy storage projects.

• Titanium dioxide market faces oversupply, but export demand remains strong.

• Company will focus on cost control, product mix optimization, and rapid market deployment of new capacity.