Securities code: 002601 securities abbreviation: Lb Group Co.Ltd(002601) Announcement No.: 2022-009 Lb Group Co.Ltd(002601)
Announcement on investment in the construction of 200000 t / a titanium dioxide post-treatment project
The company and all members of the board of directors guarantee that the information disclosed is true, accurate and complete without false records, misleading statements or major omissions.
Lb Group Co.Ltd(002601) (hereinafter referred to as “the company”), at the 31st meeting of the 7th board of directors of the company held on January 17, 2022, the proposal on investing in the construction of a post-treatment project with an annual output of 200000 tons of titanium dioxide was considered and adopted. In order to make full use of the company’s advantages in titanium dioxide R & D, production, sales and comprehensive utilization of resources, and further improve the market share of titanium dioxide, Longbai Xiangyang Titanium Industry Co., Ltd. (hereinafter referred to as “Longbai Xiangyang”), a wholly-owned subsidiary of the company, plans to invest in the post-treatment project with an annual output of 200000 tons of titanium dioxide.
According to the Listing Rules of Shenzhen Stock Exchange and the articles of association, the above foreign investment matters shall be submitted to the first extraordinary general meeting of shareholders of the company in 2022 for deliberation.
This foreign investment does not constitute a connected transaction, nor does it constitute a major asset reorganization as stipulated in the measures for the administration of major asset reorganization of listed companies.
1、 Basic information of the project
1. Project Name: 200000 t / a titanium dioxide post-treatment project
2. Construction site: Chengnan Industrial Park, No. 1, Bianhe Road, Chengguan Town, Nanzhang County
3. Construction scale and content of the project: the newly added equipment will be used to build a post-treatment device with an annual output of 200000 tons of titanium dioxide, fine process the crude products purchased from the kiln, and build public power and auxiliary supporting facilities (excluding the equipment prohibited or eliminated by the state)
4. Total investment of the project: 1 billion yuan
5. Source of funds: self owned and self raised funds
6. Construction period: the project is constructed in two phases, 100000 tons in phase I and 100000 tons in phase II
7. Project filing: the project has been filed in Nanzhang county development and Reform Bureau (project code: 2109-420624-04-01-472059)
2、 Main body of project implementation
1. Company name: Longbai Xiangyang Titanium Industry Co., Ltd
2. Unified social credit Code: 91420624573722465l
3. Registered capital: 300 million yuan
4. Legal representative: Jin Sanliang
5. Address: No. 1, Bianhe Road, Chengguan Town, Nanzhang County
6. Business scope: licensed items: import and export of goods; Technology import and export; Road cargo transportation (excluding dangerous goods); Road transport of dangerous goods; Feed additive production; Production of hazardous chemicals (for projects subject to approval according to law, business activities can be carried out only after approval by relevant departments) general items: pigment manufacturing; Pigment sales; Heat production and supply; Sales of feed additives (except for licensed business, it can independently operate projects not prohibited or restricted by laws and regulations)
3、 Necessity and feasibility of project construction
Titanium dioxide is the most excellent white pigment in the world. It is widely used in coatings, plastics, papermaking, printing ink, rubber, chemical fiber and other industries. It is known as the “barometer of the national economy”. The per capita consumption of titanium dioxide is also an important indicator to measure a country’s economic development level. All along, developed countries have been the main consumption force of titanium dioxide market. The per capita consumption of titanium dioxide in China is less than 1.7 kg, less than half of the per capita level of developed countries. With the development of China’s economy and the continuous improvement of people’s living standards, especially the awakening of people’s awareness of environmental protection and the pursuit of improving the quality of life, it is expected that the market demand of titanium dioxide in China will increase steadily and the development prospect of the industry is broad.
The company is a global leader in titanium dioxide production enterprises. According to the data of relevant institutions, the company is the third largest titanium dioxide manufacturer in the world and the largest titanium dioxide manufacturer in Asia and China according to output, sales volume and production capacity. The newly added equipment of the project is to build a post-treatment device with an annual output of 200000 tons of titanium dioxide, and the coarse products purchased from the kiln for fine processing, which can further improve the company’s titanium dioxide production capacity and consolidate the industry position.
4、 Purpose of the project investment and its impact on the company
With the implementation of the project, it will further improve the market share of the company’s titanium dioxide, enhance the market competitiveness and anti risk ability, help the company grasp the industry development trend and market opportunities, realize the large-scale and lean production of the company, and enhance the company’s core competitiveness and sustainable profitability.
5、 Investment risk of the project
The project investment may face major changes in industrial policies, failure to meet market expectations, internal control and other risk factors in the actual operation process. The company will establish a sound internal control process and effective supervision mechanism, optimize the overall resource allocation of the company, clarify the business strategy and market positioning, and prevent and respond to various risks.
6、 Documents for future reference
1. Resolutions of the 31st meeting of the 7th board of directors of the company;
2. Resolution of the 31st meeting of the 7th board of supervisors of the company.
It is hereby announced.
Lb Group Co.Ltd(002601) board of directors
January 17, 2022
