Bailian: join hands to build an international titanium dioxide giant

wallpapers Industry 2020-12-09

after two months of brewing, Bailian (002601) launched the non-public offering plan on June 8. Once the plan was launched, it received the warm attention of the capital market, and the company's stock price rose and closed for six consecutive times. According to the

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plans, the company plans to issue no more than 380 million shares to 10 specific issuers at the price of 27.00 yuan per share, and the total amount of raised funds will not exceed 102.60 million yuan. Among them, 90 million yuan will be used to purchase 100% equity of longmang titanium industry, 80 million yuan will be used to repay bank loans, and the rest will be used to supplement working capital.

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this time, Bailian spent a huge sum of money to acquire 100% equity of longmang titanium industry, the leader of domestic titanium dioxide industry. It is like a heavy ammunition to impact the capital market, which undoubtedly becomes the biggest focus of this plan. It is also worth noting that the total subscription proportion of senior executives of Bailian and longmang titanium reached 73.68%, and Xu Gang, chairman of Bailian, subscribed 90 million shares, with the shareholding ratio increased from 13.75% to 20.13%, and the lock period is three years. The increase of large shareholders' holding fully demonstrates the long-term confidence of the company's future development.

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unite with

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to open the prelude of industry integration

throughout the domestic and foreign markets, domestic titanium dioxide industry concentration is low, the top five manufacturers of production capacity accounted for only 34.8%, while foreign accounted for as high as 83%. With the continuous development of domestic and foreign markets and the increasingly strict environmental protection system in China, some small and medium-sized enterprises in China's titanium dioxide industry will be gradually eliminated, and some large enterprises with strong comprehensive strength will be further developed The industry concentration of production capacity will continue to increase.

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in 2014, there was a wave of acquisitions in titanium dioxide industry, including Bailian's acquisition of Huntsman tr52 titanium dioxide related business, CNKI's acquisition of Gansu Dongfang titanium industry and Haopu titanium industry, and Cristal's acquisition of Jiangxi Tianguang titanium dioxide business. Therefore, it has become a consensus in the industry to quickly grasp the trend of industrial M & A and to make it bigger and stronger. At present, the concentration of

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is not high, and the export proportion of titanium dioxide is close to a quarter. Under the background of high growth of the industry, the domestic market urgently needs leading enterprises that can compete with overseas titanium dioxide giants in the international market. Under this background, Bailian acquired dragon Python titanium industry, the leading enterprise in domestic titanium dioxide industry, and the new domestic industry leader came into being.

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this time Bailian acquired longmang titanium industry, which was jokingly called "snake swallowing elephant" by market people. At present, the production capacity of longmang titanium industry is nearly 300000 tons, ranking first in Asia and sixth in the world. Bailian was listed in 2011. Relying on the rapid development of the capital market, it has a production capacity of 200000 tons, which is expected to reach 260000 tons in 2015. Together, the combined production capacity of the two will reach 560000 tons, accounting for 18% of the total domestic production capacity, occupying an absolute leading position in China, and will surpass Connors to become the fourth largest titanium dioxide producer in the world after DuPont, Huntsman and Coster. It is worth mentioning that after the completion of the acquisition, the proportion of the top five domestic production capacity will be increased to more than 40%, which is conducive to improving the competitiveness of domestic titanium dioxide enterprises in the international market. It also marks that the tide of domestic titanium dioxide industry integration has begun, and the future orderly development has a profound impact on the industry. According to the financial data of

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, as of the end of 2014, the total assets of longmang titanium industry were RMB 5.7 billion and the total owner's equity was RMB 2.7 billion; in 2013 and 2014, the operating revenue was RMB 4.2 billion and RMB 4.44 billion, and the net profit was RMB 720 million and RMB 700 million respectively. The original shareholders of longmang Titanium Co., Ltd. promised that the net profits after deducting non-profit within the three-year profit commitment period will not be less than 700 million yuan, 900 million yuan and 1.1 billion yuan respectively. It can be seen that longmang titanium industry will significantly increase the performance of listed companies.

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hold the view that, instead of regarding the acquisition of longmang titanium industry by Bailian as a capital operation similar to "snake swallowing elephant", it is better to understand that the acquisition of longmang titanium industry by Bailian is better understood as a combination of domestic and foreign powers in titanium dioxide industry, taking advantage of complementary advantages to participate in international competition, improving market discourse power and opening up a new development pattern.

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complement each other in advantages

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enhance core competitiveness

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at present, the global production capacity ratio of titanium dioxide by chlorination process and sulfuric acid process is about 6:4. The market generally believes that the technology of titanium dioxide by chlorination is more advanced and more environmentally friendly than sulfuric acid process, but in fact, 95% of China's titanium dioxide is currently 95% The above enterprises still use the traditional sulfuric acid production process, and according to the actual situation, domestic titanium ore is not suitable for chlorination titanium dioxide, only suitable for sulfuric acid titanium dioxide, so the coexistence of sulfuric acid titanium dioxide and chlorination titanium dioxide will last for a long time. " Some industry experts mentioned it.

according to the market situation, the rutile titanium dioxide produced by the sulfuric acid process of longmang titanium industry is of very good quality, and can even replace the titanium dioxide produced by the chlorination process. Its main product R996 is a high-end product in the domestic titanium dioxide market. However, Bailian distributes titanium dioxide by chlorination process on the basis of the original sulfuric acid process titanium dioxide. It is estimated that 60000 tons of titanium dioxide production line will be put into production in 2015, and the domestic titanium dioxide chloride process with import substitution production capacity is expected to be born.

At present,

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are both in the first echelon of China's titanium dioxide, with excellent product quality. The two exports together account for nearly 40% of China's titanium dioxide exports. After the integration of the two sides, huge human resources in product research and development, as well as a large number of R & D experience and achievements, can be shared, which helps to better play the synergy effect, centralize advantageous resources and develop better High quality products.

worthy of investors' attention is that longmang titanium industry not only has large-scale vanadium titanium magnetite resources, but also has a titanium concentrate mining capacity of more than 600000 tons / year. After integration, it can ensure the titanium concentrate required by the company's titanium dioxide production in a long period of time in the future, improve the company's self-sufficiency of titanium concentrate, and realize "vanadium titanium magnetite titanium concentrate technology research and development - titanium dioxide powder production" Production - titanium dioxide sales "whole industry chain, to ensure the stable supply of raw materials, and greatly reduce the company's operating costs, improve the company's profitability.

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executives increased their holdings of

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to show their confidence in future development. According to the

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fixed increase plan, the company's issuance is no more than 3
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