Titanium dioxide price spread recovered month-on-month, and Base lowered its iron ore production guidance for Kenyan mines. According to the company's announcement, in 2023H1, the company's iron white powder/sponge titanium business revenue was 87.9/1.09 billion, -1%/+32% year-on-year, gross margin 25.8%/31.6%, year-on-year -9.1pct/+11.3pct, sales volume of 57.8/19,000 tons, year-on-year +23%/+32%, average price of 1.5/43,000 yuan/ton, year-on-year -20%/flat, the company produced 604,000 tons of titanium concentrate, year-on-year +26%, all self-use, Effectively guarantee the company's raw material supply.

According to Longzhong Information, 2023Q2 sulfuric acid method (rutile), chlorinated titanium dioxide price difference +24%, +2%, the first half of the year weak demand superimposed on the high cost of raw materials background, the second quarter of the profit side has picked up, waiting for the downstream boom repair export, according to customs data, 2023Q2 white powder export of 400,000 tons, +11% year-on-year, -9% month-on-month, maintaining a high level.

According to Base Resource's financial report, its Kenyan mine because the grade of the lower mining rate is lower than expected, titanium ore production guidance will decline from 26~310,000 tons in 2023 to 13 "160,000 tons" in 2024, the company's cost advantage of titanium ore self-sufficiency has long been highlighted. In summary, in 2023Q2, the company achieved a gross profit of 1.72 billion yuan, -23% year-on-year, +7% month-on-month, gross margin of 27%, -7.8pct year-on-year, +4.4pct month-on-month, and the expense ratio (four fees & taxes) was 15%.