On August 15, Baoti Titanium disclosed the semi-annual report. In the first half of 2018, the company achieved operating income of 1.58 billion yuan, a year-on-year increase of 38.40%; net profit attributable to shareholders of listed companies was 34 million yuan, an increase of 165% over the same period last year.

The titanium market recovered, the market share of high-end titanium materials increased, and the results of quality improvement and efficiency improvement were remarkable. Baoti's performance turned losses into a profit and achieved a large increase. During the reporting period, the company's operating income increased by 38.40% year-on-year. The main reason was that the company expanded its market space and upgraded its marketing level in the context of the trend of the titanium product market. The market share of high-end products such as aerospace, medical and marine engineering expanded. Titanium sales increased by 45.04% year-on-year. The performance achieved a turnaround and profitability. The net profit of the returning mother increased by 165.01% year-on-year. The growth rate was significantly higher than the growth rate of the revenue mainly driven by the following factors: (1) The improvement of the supply and demand structure of the titanium product market, the company's profitability, and the gross profit margin of the company's products. Compared with the same period of last year, the company increased 2.39 percentage points; (2) the company continued to strengthen cost control and promote cost reduction and efficiency increase, and the expense ratio decreased by 5.38 percentage points over the past three years; (3) government subsidies increased by 5.28 million during the reporting period. 84.62%.

Military high-end titanium industry leader, or will take the lead in benefiting from the modernization of the defense industry. The company's titanium materials are widely used in military, aerospace, ship and other military fields. It is an excellent titanium supplier for many military enterprises such as Shenfei Group, Aerospace Science and Technology Group, and Hangfa Chengdu Engine. Its holding company Baoti Huashen is domestic. Very few companies have the qualification to supply aerospace-grade sponge titanium directly to the military. Taking the aerospace industry as an example, titanium is widely used due to its low density and high strength. For example, the proportion of titanium in the international advanced fighter aircraft represented by F-22 has exceeded 40%. At present, the company's titanium materials are mainly used as spacecraft skeletons, rocket engine casings, aircraft wings and landing gears, etc., and have been used in the "Grand Guardian", such as the Yun-20, Shenzhou series spacecraft, and "嫦娥" lunar exploration satellites. . Military high-end titanium technology barriers are high, and the approval process for military supporting enterprises is complex, and the industry is in the upstream of the national defense industrial chain. It is expected that with the continuous expansion of China's aviation equipment, the strategy of aerospace powers and ocean powers, military titanium materials Demand will grow rapidly. In the short to medium term, the company will be the first to benefit from the domestic military high-end titanium leading enterprises.

Actively explore the civilian products market, the civilian high-end titanium business can be expected. In accordance with the "development of military products, do civilian products" as the development of ideas, the company continues to expand the application of titanium in the civilian sector, currently covering civil aviation, petroleum, chemical, metallurgical, medical and so on. In the civil aviation field, the company includes the entry permit for high-end applications such as the world's aerospace and aerospace. It is a strategic partner of Boeing, France Airbus and other companies. It is also a qualified supplier of China's commercial fly titanium, and is responsible for the domestic C919 large aircraft. In the fields of petroleum, chemical industry, smelting, etc., with the increase of national environmental protection and other aspects, the titanium market has entered an orderly competition; represented by medical equipment, desalination industry, leisure and entertainment, etc. The emerging market sector has also made significant breakthroughs. Rapid development in the civil aviation market (with C919 as an example, as of July, 815 orders have been obtained, sales will be expected to reach 2,000 in the next 20 years), traditional industrial titanium fields will pick up, and emerging markets will accelerate in the context of the company's civilian products business. Can be expected.

Independent innovation and research and development capabilities, core competitiveness advantages. The company has a number of internationally leading core technologies with independent intellectual property rights. It is the first “national enterprise technology center” in China's titanium processing enterprises. It has successfully completed more than 8,000 national scientific research projects and achieved more than 700 scientific research results. Have a domestic first-class expert team and a high-quality staff team. In order to enhance its core competitiveness, the company's R&D expenses in the past three years have increased at an annual rate of 15.69%. In addition, the company has obtained the “High-precision Titanium/Zirconium Alloy Extrusion Profile Preparation Technology”, which is the key project of national key basic material technology upgrading and industrialization. After the completion of the project, it can increase the proportion of high value-added products of the company and promote the adjustment and upgrading of the company's industrial structure.