September 25, 2024 – Major Shakeup in Titanium Dioxide Industry as Key Executives Depart from Jinpu Titanium
Jinpu Titanium, a leading player in the titanium dioxide sector, has recently witnessed a series of high-level personnel changes that have sparked widespread industry attention. Following the resignation of Director and Vice Chairwoman Peng Anzheng on August 27th due to personal reasons, the company announced on the evening of September 23rd that Deputy General Manager Zhu Zheng had also stepped down from his position for personal reasons, ceasing all roles within the company. Jinpu Titanium expressed high praise for the work of both former executives in their official statements, thanking them for their contributions to the company’s development. It is noteworthy that neither individual held any shares in the company.
As a veteran of Jinpu Titanium, Peng Anzheng had served as a director since 2013 and was appointed Vice Chairwoman in May this year, but chose to leave just four months later. The subsequent resignation of Deputy General Manager Zhu Zheng has raised concerns about the internal situation at Jinpu Titanium.
In recent years, Jinpu Titanium’s operational performance has indeed been challenging. According to Color Masterbatch Industry Network, the company’s revenue has continuously declined, with figures of 2.51 billion yuan in 2022 and 2.26 billion yuan in 2023, representing year-on-year decreases of 4.20% and 9.79% respectively. The net profit has also suffered consecutive losses, amounting to -146 million yuan and -161 million yuan in the respective years. The company attributed these losses to factors such as rising raw material costs, declining product prices, and investment losses. Although revenue showed a slight increase in the first half of 2024, the net profit remained in the red, with a loss of approximately 20 million yuan, failing to turn the tide.
Beyond the financial struggles, Jinpu Titanium is also grappling with a plummeting stock price, tight funding for its major shareholder, and uncertain prospects for its transformational businesses. The company’s stock price has fallen by approximately 70% over the past three years, with a current total market value of only 1.875 billion yuan. Major shareholder Jiangsu Jinpu Group Co., Ltd. has a high pledge rate of 75% for its shares and is involved in multiple debt disputes and lawsuits, with overdue or defaulted amounts totaling 1.1579 billion yuan, as per court rulings.
Amidst this backdrop, Jinpu Titanium has attempted to seek new growth points through industrial transformation. However, both the failed attempt to acquire Guxiandao Green Fiber and the hindered progress of its new energy battery material integration project highlight the challenges the company faces on its transformation journey. Currently, the “uncertain” prospects of its new energy business cast a shadow over Jinpu Titanium’s future.
For Jinpu Titanium, the urgent tasks lie in shaking off the negative impact of its major shareholder, stabilizing its senior management team, and improving its operational performance and profitability. Only by earning “gold” can Jinpu Titanium regain market confidence and rejuvenate its vitality.