Sichuan Anning Iron and Titanium Co., Ltd. (002978)

Equity Research Report | Sector: Vanadium-Titanium Magnetite Mining & Processing | Report Date: September 13, 2026 | The research notes only indicate that the latest trading day data points to 2026-09-11; specific closing price, price change, trading volume, turnover and other market snapshot values are not provided in the research notes, and therefore cannot be furnished.

This report is automatically compiled and generated by AI based on public information, for reference only, and does not constitute investment advice.

I. Core Summary

Anning Co. (002978.SZ) is a resource-self-sufficient vanadium-titanium magnetite mining and processing enterprise in the Panxi region, primarily engaged in titanium concentrate, vanadium-titanium iron concentrate (61%) and comprehensive utilization products. Its ferrous metal mining and processing business accounts for over 99% of revenue. Its controlling shareholders are Chengdu Zidong Investment (36.02%) and actual controller Luo Yangyong (28.81%). The most decision-relevant facts currently are: 2026H1 revenue of RMB 1.015 billion (YoY -8.37%), net profit attributable to parent of RMB 341 million (YoY -22.73%), non-GAAP net profit attributable to parent of RMB 338 million (YoY -23.78%), net margin down 6.22 percentage points YoY, of which titanium concentrate revenue -21.65% YoY and gross margin -5.77pct YoY were the main drags, while vanadium-titanium iron concentrate revenue +8.11% YoY and gross margin +7.81pct YoY provided partial offset; this is a continuation of the fourth consecutive year of decline, following net profit attributable to parent of RMB 1.095 billion in 2022, RMB 936 million in 2023, RMB 852 million in 2024, down to RMB 720 million in 2025.

The earnings decline has been accompanied by significant changes in financial structure: due to the September 2025 completion of a major asset restructuring to acquire three companies including the Xiaoheiqing Jingzhi iron mine for RMB 6.508 billion in cash, combined with construction-in-progress period-end balance of RMB 3.839 billion (up 26.90% from the prior year-end), 2026H1 financial expenses turned from negative to positive and increased by RMB 52.38 million, administrative expenses +56.13% YoY (depreciation and amortization of subsidiaries Jingzhi Mining and Anning New Energy included), and the asset-liability ratio rose sharply from 13.74% at end-2024 to approximately 48.1%, with net operating cash flow of RMB 311 million, -37.10% YoY.

The key growth variable is the 60,000-ton-per-year energy-grade titanium (alloy) materials full-industry-chain project (Titanium 6 Project, total investment RMB 7.2 billion, with RMB 1.704 billion of raised funds planned to be invested): the project's scheduled-usable-date has been postponed twice, from December 31, 2025 to June 30, 2026, and again to October 31, 2026; the company's September 11, 2026 earnings briefing stated that the sponge titanium process main facility construction and equipment installation are basically complete, with trial production expected before end-October, and EB furnace delivery and installation progressing as planned, but no commitment was made that there would be no further delay. Meanwhile, in May 2026 the company disclosed plans to issue up to RMB 2.5 billion in convertible bonds, and has already reduced its 2025 dividend payout ratio to 20% (having consistently exceeded 40% from 2020-2024).

Valuation and capital flows show some divergence: as of around September 11, 2026, the share price was RMB 25.01, total market cap RMB 11.804 billion, PE(TTM) 19.05x, PB 1.31x, TTM net profit attributable to parent approximately RMB 620 million, and the company's PE is significantly below the SW Level 3 "Other Mining" industry average of 39.05x; however, the institutional forecast sample is small and shows clear divergence (Western Securities 2026E net profit attributable to parent RMB 712 million, EPS RMB 1.51, target price RMB 35.60; institutional consensus approximately RMB 688 million, EPS approximately RMB 1.46), with few covering institutions, and confusion in the 2026 earnings forecast methodology. Technical data is notably absent, with only September 3 and September 8 main-force net selling of RMB 549,800 and RMB 1,180,400 respectively, and September 10 margin buying of RMB 4,263,000; there are no closing prices, moving averages, volume metrics or other quantifiable indicators to support price-level judgments.

II. Company Overview

2.1 Basic Information

2.2 Main Business and Product Layout

• Titanium concentrate: 2025 revenue RMB 927.5 million, 46.17% of main business, gross margin 71.53%; 2026H1 revenue RMB 418.2 million, 41.21%, gross margin 65.08%
• Vanadium-titanium iron concentrate (61%): 2025 revenue RMB 927.7 million, 46.18% of main business, gross margin 55.12%; 2026H1 revenue RMB 539.4 million, 53.16%, gross margin 58.83%, revenue share surpassing titanium concentrate
• Comprehensive utilization products: 2025 revenue RMB 148.0 million, 7.37% of main business, gross margin 49.39%; 2026H1 revenue RMB 48.4 million, 4.77%, gross margin 42.34%

2.3 Industry Chain Position and Cost-Profit Structure

The company is a resource-self-sufficient vanadium-titanium magnetite mining and processing enterprise, positioned at the most upstream segment of the titanium industry chain and the vanadium-titanium steel industry chain. Its main raw material is vanadium-titanium magnetite raw ore from its own mines (Panjiatian Iron Mine, Xiaoheiqing Jingzhi Iron Mine), not relying on externally purchased ore; downstream are titanium dioxide/sponge titanium producers and large vanadium-titanium steel enterprises. The company describes itself as "one of the major vanadium-titanium magnetite mining and processing enterprises in China" and "a key domestic titanium concentrate supplier and leading enterprise."

• The company's main raw material is self-owned vanadium-titanium magnetite raw ore (Panjiatian, Xiaoheiqing), with resource self-sufficiency and no reliance on externally purchased ore; upstream bargaining risk is mainly not in "buying ore."
• External inputs in the mining and processing segment include electricity, diesel, explosives, grinding media, beneficiation reagents, spare parts and consumables, as well as labor, depreciation and amortization, and resource taxes; the company is a price taker for external inputs such as electricity/diesel/explosives, with no publicly disclosed evidence of bargaining power.
• This search was unable to obtain reliable original text of the company's disclosed operating cost breakdown (respective proportions of electricity/labor/depreciation/resource tax), so no numerical assertions are made in this section.
• The only available quantitative reference: a China Post Securities industry report dated 2023-11-20 used Anning Co. as an example to estimate "mine-end cost at around RMB 500/ton" (single brokerage estimate, not company-disclosed methodology, for reference only).
• Total operating cost (annual, unit: RMB million): 2021: 587.41, 2022: 583.73, 2023: 620.07, 2024: 664.28, 2025: 757.30 (source: gurufocus.cn, basically consistent with F10 main business cost of RMB 755.3 million).
• Titanium concentrate customers are titanium dioxide/sponge titanium producers; the company's disclosed downstream end customers include Longbai Group (Lomon Billions), CNNC Titanium Dioxide, Pangang Group (Panzhihua Orient Titanium), Lanxing Dahua, Tianguang Titanium, Fangyuan Titanium Dioxide, Orient Titanium, etc.; the company states its titanium concentrate is "good quality, stable supply… with strong bargaining power in the market," and that it is "the largest domestic titanium concentrate supplier" (company statement).
• Vanadium-titanium iron concentrate customers are large vanadium-titanium steel enterprises such as Pangang Group, Chengyu Vanadium-Titanium, and Desheng Vanadium-Titanium; the company states that due to high iron and vanadium grades (first in the industry to upgrade grade from 55% to 61% in 2019) it "is a priority procurement target for downstream vanadium-titanium steel enterprises, with prices significantly better than surrounding enterprises."
• Customer concentration (verifiable historical figures): top five customers (consolidated basis) revenue as a proportion of operating revenue was 64.27% in 2020, 63.86% in 2021, 60.17% in 2022, and 63.28% for January-March 2023 (source: company's 2022 private placement prospectus); under another methodology, the 2022 annual report disclosed top five customers with combined sales of RMB 1.235 billion, accounting for 61.86%, and top five suppliers with combined purchases of RMB 338 million, accounting for 53.66% of total purchases (source: China Securities Smart Financial News, 2023-03-30).
• 2023 top five customer details under the same control basis (as % of revenue): Miyi County Guolixing Mining 14.20% (vanadium-titanium iron concentrate), Panzhihua Anlong Mining 13.18% (vanadium-titanium iron concentrate), Pangang Group (including Panzhihua Orient Titanium) 13.03% (titanium concentrate), Qianjiang Fangyuan Titanium Dioxide 10.12% (titanium concentrate), Jiangxi Tianguang Titanium 9.53% (titanium concentrate), subtotal 60.06% (source: company's revised response to private placement inquiry letter).
• Important note: the most recent period (2024, 2025 annual reports) top five customer combined proportion could not be obtained in this search; the above data are from shareholder meeting/offering document methodology, can only be used as "latest verifiable values," should be labeled as 2023 and earlier data, and it should be noted that different documents show a difference of approximately 1.7 percentage points (60.17% vs 61.86%, 2022).
• Structural bargaining characteristics: this industry does not follow an automotive-parts-style "annual price reduction" logic, but rather commodity prices moving with the market — titanium concentrate follows titanium dioxide/sponge titanium prosperity (2023-2024 global titanium ore supply fell short of demand, and the company stated titanium concentrate was in a prosperity cycle), while vanadium-titanium iron concentrate follows steel/vanadium prices (affected by real estate, infrastructure, and steel mill procurement). The main driver of gross margin fluctuations is product prices and mix, not customer price pressure.
• Accounts receivable/net profit approximately 6.22% (StockStar financial risk screening module, page updated 2025-04-12, based on 2024 annual report methodology); this ratio is extremely low, indicating sales are basically cash-before-delivery/cash settlement, with strong downstream bargaining position; inventory/operating revenue approximately 76.46% for the same period (same source), with heavy inventory occupation (mineral product stocking/low-grade ore stockpiling characteristics), making it a weaker working capital link; operating cash flow/net profit approximately 139.00% (same source), with operating cash flow consistently above net profit for a long period. Also note: the company's 2024 annual report showed financial expenses of -RMB 17 million (net interest income), and -RMB 27 million in 2021; from 2025 onward these turned to net expenditure due to new borrowings (2026H1 financial expenses RMB 52.38 million), related to funding pressure from the RMB 6.5 billion cash acquisition + RMB 10 billion titanium materials project. Data from a single third party (StockStar), unable to cross-verify with the company's annual report original text, and may be based on 2024 methodology; recommend verifying with the latest annual report accounts receivable turnover days.
• Top five customer concentration: 64.27% in 2020, 63.86% in 2021, 60.17% in 2022 (another methodology shows 61.86% for 2022), 63.28% for January-March 2023, and 60.06% for 2023 under the same control basis. This data source is the company's 2022 private placement prospectus and private placement inquiry letter responses and other offering documents; different documents show a difference of approximately 1.7 percentage points; the latest period 2024, 2025 annual report top five customer proportion could not be obtained, and should be labeled as 2023 and earlier data when used, with the latest annual report being authoritative. Supplier side: 2022 top five suppliers combined purchases accounted for 53.66% of total purchases (China Securities Smart Financial News, 2023-03-30).

The company is positioned at the most upstream resource mining and processing segment of the smile curve, and by virtue of its own mining resources and 61% high-grade iron concentrate, enjoys gross margins above those of midstream smelting and processing (gross margins maintained in the 62%-75% range from 2021-2025). However, gross margins have been continuously declining in recent years, and further improvement drivers do not lie in raising prices to downstream (this industry follows commodity prices moving with the market, not an annual price reduction logic), but rather in: first, pricing elasticity from a cyclical recovery in titanium concentrate prices; second, product mix upgrading, i.e., extending from titanium concentrate to high-titanium slag — titanium tetrachloride — sponge titanium — titanium materials deep processing (Titanium 6 Project expected to enter trial production before end-October 2026), capturing higher value-added from the resource end toward the materials end; third, cost dilution from resource scale expansion (Xiaoheiqing Jingzhi Iron Mine resumption of production, capacity expansion); fourth, cost control in the mining and processing segment. In the short term, attention should be paid to the suppression of net margin from rising financial expenses brought by the RMB 6.5 billion cash acquisition and RMB 10 billion titanium materials project.

III. Financial Data and Valuation Analysis

3.1 Recent Operating Performance

2026H1 data is based on the company's 2026 interim report summary original text: operating revenue RMB 1,014,619,294.32 (-8.37% YoY), net profit attributable to parent RMB 340,795,534.13 (-22.73% YoY), non-GAAP net profit attributable to parent RMB 338 million (-23.78% YoY), basic EPS RMB 0.7224, net operating cash flow RMB 311 million (-37.10% YoY). Period-end total assets RMB 17.363 billion, liabilities RMB 8.351 billion (asset-liability ratio approximately 48.1%), shareholders' equity RMB 9.012 billion, net assets per share RMB 19.02; construction-in-progress period-end balance RMB 3.839 billion (+26.90% from prior year-end); 2026H1 no cash dividend, no bonus shares, no capital reserve conversion, while simultaneously announcing plans to issue convertible bonds to raise up to RMB 2.5 billion. Note data traps: some third-party F10 pages display "H1 net profit YoY -23.78%" alongside "revenue YoY -8.37%," when in fact -23.78% is the non-GAAP net profit growth rate, and the net profit attributable to parent growth rate is -22.73%. 2026H1 segment structure (as of 2026-06-30): vanadium-titanium iron concentrate revenue RMB 539.4 million (53.16% share, gross margin 58.83%, +7.81pct YoY, +8.11% YoY); titanium concentrate revenue RMB 418.2 million (41.21% share, gross margin 65.08%, -5.77pct YoY, -21.65% YoY); comprehensive utilization products RMB 48.38 million (4.77% share, gross margin 42.34%); overall main business gross margin 60.92% (FY2025 62.29%). Expense side: administrative expenses RMB 90.38 million (+56.13% YoY), financial expenses turned from negative to positive, increasing by RMB 52.38 million. 2026Q1 single-quarter data is from a single third-party source only (BOCHK/eTnet), not cross-verified against the company's Q1 report original text, but does not contradict the interim report back-calculation (Q1+Q2=RMB 341 million); from this data, 2026Q2 net profit attributable to parent can be back-calculated at approximately RMB 188 million (2025Q2 approximately RMB 211 million, Q2 YoY approximately -11%). 2025 net profit attributable to parent appears as two figures across different databases: RMB 718 million (consolidated net profit)/RMB 720 million (attributable to parent), with the difference being minority interests. 2025H1 revenue base is anomalous: 2024H1 revenue RMB 846 million → 2025H1 revenue RMB 1.107 billion (+30.8%), while FY2025 was only +8.17%; this jump was not found in this search to have a clear consolidation/methodology explanation; recommend clarifying the comparability of the base period for 2025-2026 revenue YoY. Historical EPS methodology note: 2024 "diluted EPS RMB 2.13" was based on approximately 400 million shares before the private placement, while Western Securities' 2024 EPS was RMB 1.80 (472 million shares); cross-year PE comparisons should be unified to the 472 million share basis.

2026H1 revenue and net profit attributable to parent both declined YoY, with the net profit attributable to parent decline (-22.73%) significantly larger than the revenue decline (-8.37%), and net margin down 6.22 percentage points. The drag came mainly from weaker titanium concentrate volume and price: titanium concentrate revenue -21.65% YoY, gross margin -5.77pct YoY; vanadium-titanium iron concentrate revenue +8.11% YoY, gross margin +7.81pct YoY, providing partial offset. Expense-side pressure is significant: administrative expenses +56.13% YoY (depreciation and amortization of subsidiaries Jingzhi Mining and Anning New Energy included), financial expenses turned from negative to positive and increased by RMB 52.38 million (increased borrowings), combined with the asset-liability ratio rising sharply from 13.74% at end-2024 to approximately 48.1%, mainly due to the 2025 acquisition of Xiaoheiqing Jingzhi Iron Mine for RMB 6.508 billion cash consideration, construction-in-progress of RMB 3.839 billion, and planned issuance of up to RMB 2.5 billion in convertible bonds. In terms of earnings quality, non-GAAP net profit attributable to parent -23.78% YoY, broadly in line with the attributable-to-parent decline; net operating cash flow RMB 311 million, -37.10% YoY. In terms of trend, net profit attributable to parent has declined for four consecutive years from 2022-2025 (RMB 1.095 → 0.936 → 0.852 → 0.720 billion), with 2026H1 continuing the downtrend. The 2025 dividend payout ratio was reduced to 20% due to the Xiaoheiqing acquisition and titanium materials project capital expenditure (consistently >40% from 2020-2024, 51% in 2024); future dividend capacity and EPS dilution will be affected by the convertible bonds and project capital expenditure, and valuation models need to incorporate this.

3.2 Earnings Forecasts

Forecast data sources: Western Securities (Liu Bo/Li Rouxuan) initiated coverage with "Buy" on 2026-06-28, target price RMB 35.60 (corresponding to 24xPE for 2026), forecasting 2026E/2027E/2028E net profit attributable to parent of RMB 712/809/900 million, EPS RMB 1.51/1.71/1.91, operating revenue RMB 2.010/2.218/2.398 billion; CITIC Securities (Ao Chong/Bai Junfei) 2026-05-11, EPS 2026E/2027E/2028E = RMB 1.46/1.67/1.96 (rating and target price not disclosed); multi-institutional consensus taken from East Money industry analysis page (note: "data sourced from 2026 interim report, latest data still being updated"), with consensus EPS back-calculated from EPS growth rates at approximately 2026E ≈ RMB 1.46, 2027E ≈ RMB 1.66, 2028E ≈ RMB 1.88, corresponding to net profit attributable to parent of approximately RMB 688/783/885 million. Forecast divergence note: consensus 2026E attributable to parent (approximately RMB 690 million) is below Western Securities' RMB 712 million, but 2027-2028 consensus revenue growth (+23%/+30%) is far above Western Securities' (+10.4%/+8.1%), with the difference mainly stemming from differing assumptions on the contribution pace of the "60,000-ton energy-grade titanium (alloy) materials full-industry-chain project" (total investment RMB 7.2 billion, expected annual revenue of RMB 4.389 billion, annual net profit of RMB 874 million, payback period 8.24 years upon full production; project progress 95% at end-2026H1, expected trial production in H2 2026). Few covering institutions: Simply Wall St shows only 6 institutions covering, of which only 2 submitted forecast inputs (CITIC Securities, Haitong International); StockStar earnings forecast detail page at the statistical point listed only 2 (CITIC, Huatai), so the "institutional consensus" sample is small and weakly stable. Huatai Securities' previous version (2025-10-27) forecast 2025-2027E attributable to parent of RMB 830/1,000/1,070 million, EPS RMB 1.75/2.12/2.28, with its 2025 forecast of RMB 830 million vs actual RMB 720 million deviating by approximately 15%, no longer directly quotable; Guotai Haitong (2025-11-04) forecast 2025-2027 attributable to parent of RMB 920/997/1,029 million, EPS RMB 1.95/2.11/2.18, with its 2025 forecast of RMB 920 million vs actual RMB 720 million deviating by approximately -22%, usable only as historical rating reference and not to be included in the current institutional consensus. 2026 earnings forecast methodology is confused: Western Securities (RMB 712 million), Wind-style consensus (approximately RMB 690 million), and Huatai (latest target price RMB 34.40 but corresponding earnings forecast not obtained in the main text) cannot be directly mixed.

3.3 Valuation Levels and Institutional Ratings

As of around 2026-09-11 (data from Cailian Press quote page, page does not clearly indicate trading day, its TTM attributable to parent methodology exactly matches the 2026 interim report, judged to be 2026-09-11 close or the most recent trading day's forward-adjusted price, specific trading day pending verification): share price RMB 25.01 (that day -3.55%, intraday RMB 24.70-25.76, turnover RMB 107 million, turnover rate 1.16%); total market cap RMB 11.804 billion; circulating market cap RMB 9.236 billion (circulating shares 369 million, total shares 472 million); PE (TTM) 19.05x; PE (static, 2025 annual report) 16.40x; PB 1.31x (net assets per share RMB 19.0193). TTM net profit attributable to parent approximately RMB 620 million (= FY2025 RMB 720 million - 2025H1 RMB 441 million + 2026H1 RMB 341 million), internally consistent with PE(TTM) 19.05 and market cap RMB 11.804 billion, cross-verification passed. Cross-check (slightly earlier point): 2026-08-28 close RMB 26.77, PE 18.54, total market cap RMB 12.6 billion (East Money); around 2026-06-30 RMB 26.59, PE 19.53, PB 1.45, dividend yield 1.13% (Lixinger). It can be seen that the share price fluctuated downward in the RMB 25-27 range from July to September. Interval performance (East Money industry analysis page): last 1 month -3.96%, last 3 months -6.65%, last 6 months -23.71%, year-to-date -23.43% (i.e., 2025 year-end close approximately RMB 32-33). Industry valuation comparison (Lixinger, 2026-06-30): the SW Level 3 "Other Mining" industry PE 39.05x, PB 3.54x, dividend yield 1.21%; the company's PE(TTM) 19x is significantly below the industry average. Comparable company valuation (Western Securities research report table, 2026E): Vanadium-Titanium Co. PE 62x (attributable to parent RMB 485 million), Western Superconducting 35x (RMB 984 million), Longbai Group 22x (RMB 1.923 billion), industry average approximately 40x, Anning Co. 17x. Multi-institutional consensus valuation (East Money industry analysis page): PE 25A 16.40 / TTM 19.05 / 26E 17.17 / 27E 15.09 / 28E 13.35; PS 25A 5.88 / TTM 6.16 / 26E 5.67 / 27E 4.61 / 28E 3.53; PEG 2.12. Baidu Stock Connect "Institutional Ratings" summary: average target price RMB 36.70, high RMB 39.00, low RMB 34.40 (the average mixes in outdated 2025 target prices, limited reference value). Valuation-related risks and uncertainties: planned issuance of up to RMB 2.5 billion in convertible bonds (announced simultaneously with the 2026 interim report), combined with construction-in-progress of RMB 3.839 billion and 2025 acquisition of Xiaoheiqing Jingzhi Iron Mine for RMB 6.508 billion cash consideration, debt and financial expense upward pressure has already been reflected in 2026H1 (financial expenses turned from negative to positive +RMB 52.38 million, asset-liability ratio rose to approximately 48%), which will directly affect subsequent financial expenses, EPS dilution and dividend capacity, and valuation models need to incorporate this; historical EPS methodology was diluted by the January 2025 private placement (raising RMB 1.704 billion, share capital expanded to 472 million shares), so cross-year PE/PB comparisons must be unified to the same share capital basis; the confused 2026 earnings forecast methodology and small covering institution sample also affect the stability of valuation references.

IV. Recent News and Announcements

4.1 Progress Announcement on Major Asset Restructuring to Acquire 100% Equity of Three Companies Including Jingzhi Mining

The company participated in the substantive consolidated reorganization of Jingzhi Mining, Hongxin Industry and Trade, and Liyu Mining by way of cash, ultimately acquiring 100% equity of the three companies, with cash consideration of RMB 6,507,688,000 (approximately RMB 6.508 billion). On 2025-09-04, the 2025 Third Extraordinary Shareholders' Meeting deliberated and approved the "Resolution on the Company's Major Asset Restructuring Complying with Relevant Laws and Regulations" and the "Resolution on the Major Asset Purchase Plan" (Announcement No. 2025-065). The main asset of Jingzhi Mining is the mining right of the Xiaoheiqing Jingzhi Iron Mine in Huili County. At the 2026-09-11 interim earnings briefing, investors questioned the uncertainty of the RMB 6.5 billion acquisition of the Xiaoheiqing mine and the Anning Titanium 6 Project, asking whether the resumption of production at Jingzhi Mining deviated from the original announcement expectations; the company's response was "the company is advancing the resumption of production at Jingzhi Mining as planned, prioritizing the recovery of low-grade ore, see subsequent announcements for details," without giving a clear commitment on resumption timing (Investor Relations Activity Record, No. 2026-001, dated 2026-09-11). CITIC Jiantou Securities issued the "2025 Annual Continuous Supervision Opinion on the Major Asset Purchase of Sichuan Anning Iron and Titanium Co., Ltd."; CITIC Securities issued the 2025 annual sponsor work report. Uncertainty: the resumption of production timetable currently has only qualitative company statements, with no hard dates, making it a risk point requiring continuous monitoring.

4.2 Announcements on the Issuance of Convertible Corporate Bonds to Unspecific Targets and Change of Continuous Supervision Institution

On 2026-05-26, the "Announcement on the Disclosure of the Preliminary Plan for Issuing Convertible Corporate Bonds to Unspecific Targets" was disclosed (Announcement No. 2026-023). Due to the engagement of CITIC Jiantou Securities as the sponsor for this convertible bond issuance, on 2026-07-23 the "Announcement on the Change of Continuous Supervision Institution and Sponsor Representatives" was disclosed (Announcement No. 2026-038), with the unfinished continuous supervision work of the original sponsor CITIC Securities taken over by CITIC Jiantou. On 2026-09-02, the "Announcement on Re-signing the Tripartite Supervision Agreement for Raised Funds After the Change of Continuous Supervision Institution and Sponsor Representatives" was disclosed (Announcement No. 2026-045). Additional information: the previous 2022 private placement of A-shares issued 70,989,958 shares at an issue price of RMB 24.00/share, with total raised funds of RMB 1,703,758,992.00, net of issuance fees of RMB 1,683,710,888.26, in place on 2024-12-26 (Xinyong Zhonghe capital verification).

4.3 Progress Announcements on Cash Management of Raised Funds

On 2025-03-19, the 21st meeting of the 6th Board of Directors approved the use of no more than RMB 1.2 billion of idle raised funds and no more than RMB 2.5 billion of idle own funds for cash management, with a term of no more than 12 months, renewable and rollable; related cash management progress announcements were disclosed multiple times in 2026.

4.4 Announcement on the Postponement of the Raised Fund Investment Project (60,000-ton-per-year Energy-Grade Titanium/Titanium Alloy Materials Full Industry Chain) (First Time)

On 2025-12-22, the 30th meeting of the 6th Board of Directors postponed the project's scheduled-usable-date from 2025-12-31 to 2026-06-30; the reason included long supply cycles for some customized equipment. On the same day, an announcement stated that the EB furnace is expected to complete installation before end-2026 (not involving raised funds). (Announcement No. 2025-081)

4.5 Announcement on the Postponement of the Raised Fund Investment Project (60,000-ton-per-year Energy-Grade Titanium/Titanium Alloy Materials Full Industry Chain) (Second Time)

On 2026-06-30, the 37th meeting of the 6th Board of Directors postponed it again to 2026-10-31 (Announcement No. 2026-034). The project's total investment is RMB 7,200 million, with raised funds of RMB 1,703,759,000 planned to be invested; as of 2026-05-31, cumulative raised funds used were RMB 1,009,982,000, with approximately RMB 658,881,900 remaining unused (unaudited). Latest progress statement at the 2026-09-11 earnings briefing: sponge titanium process main facility construction and equipment installation basically complete, expected to enter trial production before end-October; EB furnace delivery and installation progressing in an orderly manner as planned. Uncertainty: the same project has been postponed twice since end-2025, and the company only responded with an expectation of trial production before end-October, without committing to no further delays, so the timetable carries a risk of further slippage.

4.6 Announcements Related to the 2025 Restricted Stock Incentive Plan (Draft)

On 2025-12-22, the 30th meeting of the 6th Board of Directors deliberated and approved the "2025 Restricted Stock Incentive Plan (Draft)" and the assessment management measures: 722,600 restricted shares to be granted, approximately 0.15% of total share capital, at a grant price of RMB 20.60/share. On 2026-01-13, the 2026 First Extraordinary Shareholders' Meeting was held to deliberate related resolutions (equity registration date 2026-01-07, a special resolution with separate vote counting for minority investors). Uncertainty: the incentive plan draft/shareholders' meeting arrangements are relatively complete from a single reposting source; recommend verifying against the original Cninfo announcement number whether the grant has actually been implemented.

4.7 2025 Annual Equity Distribution Implementation Announcement

2025 annual profit distribution: based on 471,786,558 shares (total share capital of 471,989,958 shares less 203,400 shares in the repurchase special securities account), a cash dividend of RMB 3.00 per 10 shares (tax inclusive), totaling RMB 141,535,967.4. Approved by the annual shareholders' meeting on 2026-05-22; the "2025 Annual Equity Distribution Implementation Announcement" was disclosed on 2026-07-08/09 (Announcement No. 2026-036), with equity registration date 2026-07-14 and ex-dividend/ex-rights date 2026-07-15.

4.8 Note on Data Conflicts in Share Repurchase-Related Disclosures

Repurchase methodology conflict (highlighted): the official equity distribution announcement shows that as of 2026-07-08, the company's repurchase special securities account held 203,400 shares (this portion does not participate in profit distribution); the Shenzhen Stock Exchange Interactive Easy Q&A shows the company stating in response to investors that it disclosed on 2026-05-13 that 2026 share repurchases had reached 14,000,650 shares. The two figures differ by approximately 70x and cannot corroborate each other. The East Money announcement list also shows a repurchase-type announcement on 2026-03-17; GuruFocus (gurufocus.cn) shows TTM share repurchase cash outflow of ¥0 as of March 2026. Judgment: the 203,400 shares come from the formal equity distribution implementation announcement and have higher credibility; the 14,000,650 shares appear only in a single Interactive Easy reply and are suspected to be a reposting/methodology error, not recommended for adoption; recommend verifying the repurchase plan size and cumulative repurchase number against the original Cninfo announcement. At the 9/11 earnings briefing, investors explicitly asked whether the company has future share repurchase plans to support the share price; the company did not disclose a new repurchase plan, only responding that it focuses on market value management and is steadily advancing market value management by proactively connecting with long-term institutions through multiple channels. As of the search time, no new repurchase plan announcement was seen.

4.9 Announcements on Change of General Manager and Replacement of Non-Independent Director

2025-10-16 General Manager change: Yan Mingqing changed to Zeng Chenghua. On 2025-11-03, the 2025 Fourth Extraordinary Shareholders' Meeting approved the "Resolution on Replacing the Company's Non-Independent Director" (Announcement No. 2025-078; 307,612,041 shares in favor, 99.9369%). On 2026-05-22, the 2025 Annual Shareholders' Meeting was held (deliberating the annual report, profit distribution, renewal of the 2026 accounting firm, etc.).

4.10 Announcements on External Guarantees and Block Trades

External guarantees: on 2025-11-27, an announcement stated that Panzhihua Jingzhi Mining Co., Ltd. provided a guarantee to Sichuan Anning Iron and Titanium Co. by way of mortgage. Block trades: on 2025-11-06, average transaction price RMB 29.00, discount 9.85%, 100,000 shares, turnover RMB 2.9 million; previously on 2025-09-24, 09-22, 08-12, 08-11 there were block trades (average prices RMB 27.00-29.88, discounts 4.35%-9.85%).

4.11 Announcement on Participation in the Sichuan Region 2026 Investor Online Collective Reception Day and Interim Report Earnings Briefing

On 2026-09-08, an announcement was made regarding participation in the Sichuan Region 2026 Investor Online Collective Reception Day and Interim Report Earnings Briefing (Announcement No. 2026-046), with the event on 2026-09-11 14:00-17:00; company executives (Chairman Luo Yangyong, CFO Chen Xueyuan, Independent Director Xie Xiaoxia, Board Secretary Yang Junwei) participated. During the briefing, it was mentioned: the 50,000-ton iron phosphate project is undergoing continuous process improvement and is maintaining communication with downstream customers, with no production start date given; investors mentioned that the share price has nearly halved since early March this year.

4.12 Items Not Found or Pending Confirmation

No announcement related to the 2026 Q3 earnings preview (positive/negative profit warning) was found; no new share repurchase plan announcement was found (only the above-mentioned repurchase disclosure with questionable size was seen); no negative regulatory matters such as regulatory penalties, inquiry letters, or investigations were found (not found in the search, but this does not mean they do not exist); whether there are new shareholder reduction/increase announcements was not clearly obtained.

4.13 Uncertainty and Source Quality Notes

1. There is a major contradiction in repurchase data between 203,400 shares vs 14,000,650 shares, which has been noted; the formal equity distribution announcement (203,400 shares) is preferentially adopted, and the 14,000,650 shares is a single Interactive Easy source and questionable. 2. Most company major events/announcement summaries come from reposting pages such as East Money, StockStar, and Jiufang Zhitou; core content (announcement numbers, dates, amounts) can be cross-verified with print media announcement pages such as Shanghai Securities News/Securities Daily/China Securities Journal; however, individual details (such as whether the incentive plan has been granted, repurchase progress amounts) should be based on the original PDFs at Cninfo. 3. Financial, margin trading, share price, pledge, Stock Connect and other data come from third parties (Lixinger, StockStar research drafts), with inconsistent time points, and some are estimates/rephrasings, not official disclosure methodology. 4. As-of date explanation: the announcement-type information in these notes is as of 2026-09-11 (latest announcement date); market data points latest as of 2026-08-31; some third-party indicators as of 2026-06-30 or 2026-07-24.

V. Share Price Trend and Technical Analysis

5.1 Price Overview

5.2 Technical Indicators

The research notes confirm the target is Sichuan Anning Iron and Titanium Co., Ltd. (Anning Co., 002978), mainly engaged in vanadium-titanium magnetite mining, washing and processing, and sales, with the latest trading day data pointing to 2026-09-11, but the notes do not provide that day's closing price, price change, trading volume, turnover, moving averages, Bollinger Bands, MACD, RSI or other specific technical indicator values, nor 52-week high/low. On the capital flow side, the notes recorded September 3 and September 8 main force net selling of RMB 549,800 and RMB 1,180,400 respectively, and September 10 margin buying of RMB 4,263,000 (but repayment and net amount data are missing). On shareholder structure, only 9 institutions had disclosed holdings in 2026Q2, and the top ten circulating shareholders showed new entry, exit and reduction changes, with Zhang Haichao holding 577,200 shares, 0.19% of circulating A-shares, but complete concentration data is missing. Due to the absence of core market and technical indicator values, this section cannot provide specific price-level calculations, and can only provide a qualitative summary of available information, honestly noting data gaps.

5.3 Short-Term Trend Outlook (Next Week, Scenario Projection, For Reference Only)

⚠️ Risk Warning: The following content is merely a subjective scenario projection based on limited data in the research notes, and does not constitute any investment advice. The research notes do not provide the latest closing price, moving averages, Bollinger Bands or other key values, and all price levels and scenario descriptions carry significant uncertainty.

① Key Technical Levels

② Next Week Scenarios (Subjective Weighting, Not Statistical Probability)

• Range-bound consolidation (subjective weight: medium (this weighting is a subjective heuristic judgment based on the current lack of technical information and slight capital outflow, not statistical probability)): Against the backdrop of lacking clear trend signals and continuous small net outflows of main force funds, the share price may maintain range-bound fluctuation with unclear direction. The specific range cannot be given because the research notes do not provide closing price and moving average values, and must be delineated after confirmation with the latest market data.
• Weaker downward (subjective weight: medium (also a subjective heuristic judgment, not statistical probability)): If main force net outflows continue or the broader market environment weakens, the share price may test support downward, but the research notes do not provide recent lows or strong support values, so a specific downside target range cannot be given. Trigger conditions can focus on whether main force net outflows continue or trading volume significantly increases.
• Rebound strengthening (subjective weight: low (subjective heuristic judgment, not statistical probability)): If margin funds turn to net inflow, institutions increase holdings, or sector catalysts emerge, the share price may rebound and strengthen, but the research notes do not provide recent highs or resistance values, so a specific rebound target range cannot be given; trigger conditions require observing subsequent margin net amount turning positive and volume confirmation.

③ Capital and Liquidity Background

The research notes provide some capital and shareholder structure information: September 3 main force net selling RMB 549,800, September 8 main force net selling RMB 1,180,400, September 10 margin buying RMB 4,263,000 (lacking margin repayment and net amount, so leveraged fund net direction cannot be determined). Core liquidity data such as turnover rate and daily turnover range are not provided in the research notes, so order book depth and slippage levels cannot be assessed. On shareholder structure, the institutional wind vane cited in the research notes shows only 9 institutions with disclosed holdings in 2026Q2; the top ten circulating shareholders showed changes including Wu Dongping newly entering, Ying Yicheng exiting, and Yang Juncheng et al. reducing holdings, with Zhang Haichao holding 577,200 shares, 0.19% of circulating A-shares. Special note: the above shareholder data cutoff date is 2026-06-30, subject to disclosure lag, and the structure may have changed since then; moreover, the notes do not give the complete top ten shareholder list and total holding concentration ratio, so concentration cannot be calculated or the relative proportions of mainstream institutions (public funds/social security/QFII) and controlling family/PE-type holders determined. In the absence of turnover rate and turnover data, it cannot be determined whether the stock actually has thin liquidity or large slippage; readers should supplement with the latest data for verification.

The research notes do not provide the normal fluctuation range of Anning Co.'s recent daily turnover or turnover rate, so a meaningful volume confirmation threshold cannot be calibrated; it is recommended to first obtain the turnover data for the past 20 trading days, and then use a level significantly above the midpoint of that range (for example, reaching more than 1.5x the recent average and sustaining) as an observation signal for capital involvement.

④ Points to Watch (Observation Ideas Only, Not Operational Instructions)

• Watch whether the 2026-09-11 closing price, price change, trading volume, turnover, as well as MA5/10/20, Bollinger Band upper/lower rails, recent swing highs/lows and other key values are subsequently supplemented, to determine short-term resistance and support ranges.
• Watch whether main force fund flows can turn from continuous small net outflows to net inflows, and whether margin buying is accompanied by margin net amount turning positive.
• Watch whether daily turnover can significantly increase and sustain relative to the recent norm, as an observation signal for capital involvement; the specific threshold requires first obtaining the 20-trading-day turnover baseline.
• Watch the latest disclosure of institutional holdings and top ten circulating shareholder structure after 2026Q2 (existing data as of 2026-06-30, subject to lag), to judge whether institutional participation has changed.

The above scenario projections are based on the latest trading day 2026-09-11 marked in the research notes (but the notes do not provide specific market values for that day) and historical capital and shareholder data cited in the notes; short-term share prices will also be affected by multiple factors such as news, capital flows, and the broader market environment; technical indicators themselves have lag and limitations, and many key values are missing in this section; this does not constitute a guarantee of future actual trends, nor a buy or sell recommendation; please make independent judgments based on the latest market information and bear investment risks yourself.

VI. Industry Landscape and Competitor Analysis

6.1 Industry Status

The vanadium-titanium magnetite mining and processing industry in which the company operates is located upstream of the titanium industry chain and the vanadium-titanium steel industry chain. Domestic titanium ore is mainly low-grade ilmenite, mostly distributed in the Panxi region, with a shortage of rutile-type titanium ore; industry concentration is relatively high, with the four producers Pangang Group, Longbai Group, Anning Co., and Chonggang Xichang accounting for more than 60% of national output (CITIC Jiantou). Since 2023, Xinjiang titanium fine powder capacity has been rapidly released, breaking the domestic supply structure of single reliance on Panxi and becoming the second-largest domestic incremental production region. Titanium concentrate prices fluctuate with titanium dioxide/sponge titanium prosperity, while vanadium-titanium iron concentrate prices fluctuate with steel/vanadium prices.

6.2 Competitive Landscape

• Domestic titanium ore industry concentration is relatively high, with the four producers Pangang Group, Longbai Group, Anning Co., and Chonggang Xichang accounting for more than 60% of national output (CITIC Jiantou).
• The company describes itself as a key domestic titanium concentrate supplier and leading enterprise, and one of the major domestic vanadium-titanium magnetite mining and processing enterprises, with main products being titanium concentrate and vanadium-titanium iron concentrate.
• Since 2023, Xinjiang titanium fine powder capacity has been rapidly released, breaking the domestic supply structure of single reliance on Panxi and becoming the second-largest domestic incremental production region, with major changes in the supply landscape.
• The ilmenite industry chain has a structural contradiction of "high-end shortage, low-end surplus"; China's titanium resources are mostly symbiotic raw ore, mainly existing in the form of primary titanium (magnetite) iron ore type, with a shortage of rutile-type titanium ore.
• 2023-2024 global titanium ore supply fell short of demand, and the company stated titanium concentrate was in a prosperity cycle; vanadium-titanium iron concentrate demand is affected by real estate, infrastructure, and steel mill procurement.
• The company's strategy is "horizontal resource M&A, vertical industry chain extension, building an advanced mining-materials integrated enterprise," completing a RMB 6.508 billion cash acquisition in September 2025 to obtain 100% equity of three companies including Xiaoheiqing Jingzhi Iron Mine, and advancing the 60,000-ton-per-year energy-grade titanium (alloy) materials full-industry-chain project to extend into titanium materials deep processing.

6.3 Major Competitors

Anning Co. is in the first tier of the domestic titanium ore industry together with Pangang Group, Longbai Group, and Chonggang Xichang, with the four combined accounting for more than 60% of national output and high industry concentration. Unlike the other three, which mostly also have downstream smelting or titanium dioxide deep processing businesses, Anning Co. currently focuses on vanadium-titanium magnetite mining and processing as its main business, with ferrous metal mining and processing accounting for over 99% of revenue, a single product structure and stronger resource attributes, with gross margins (62%-75% from 2021-2025) significantly higher than midstream smelting and processing; however, the company is horizontally expanding resource reserves through the RMB 6.508 billion acquisition of Xiaoheiqing Jingzhi Iron Mine, and advancing the approximately RMB 10 billion Titanium 6 Project to vertically extend into sponge titanium-titanium materials deep processing, attempting to transform from a pure upstream resource end to "mining-materials integration," and will compete with Longbai Group and others in the titanium materials deep processing segment in the future.

VII. Risk Warnings

• Risk of further slippage after the second postponement of the Titanium 6 Project: the project's scheduled-usable-date has been postponed from December 31, 2025 to June 30, 2026, and again to October 31, 2026; as of May 31, 2026, cumulative raised funds used were RMB 1,009,982,000, with approximately RMB 658,881,900 remaining unused; the company on September 11, 2026 only responded with "expected to enter trial production before end-October," without committing to no further delays; if postponed again, the 2027E/2028E titanium materials incremental assumptions in Western Securities and institutional consensus will face downward revision.
• Risk of uncertain resumption timing at Xiaoheiqing Jingzhi Iron Mine: the company acquired 100% equity of three companies including Jingzhi Mining for RMB 6.508 billion cash, with the core asset being the mining right of Xiaoheiqing Jingzhi Iron Mine in Huili County (retained resources of 113 million tons, designed capacity of 2.6 million tons/year industrial-grade ore); at the September 11, 2026 earnings briefing, investors explicitly questioned whether resumption deviated from the original announcement expectations, and the company only replied "advancing as planned, prioritizing low-grade ore recovery" without giving a hard timing commitment; if resumption continues to be delayed, the payback period for the RMB 6.5 billion cash consideration will be lengthened, and goodwill or asset impairment and financial expense pressure may rise.
• Risk of deteriorating financial expenses and debt structure: the asset-liability ratio has risen sharply from 13.74% at end-2024 to approximately 48.1% at end-2026H1, with liabilities of RMB 8.351 billion; financial expenses turned from -RMB 17 million in 2024 (net interest income) to an increase of RMB 52.38 million in 2026H1; during the same period the company announced plans to issue up to RMB 2.5 billion in convertible bonds, and in July 2026 reduced the 2025 dividend payout ratio to 20% (consistently above 40% from 2020-2024, 51% in 2024); if the Titanium 6 Project and Jingzhi Mining resumption fail to generate cash flow on schedule, rising interest expenses and convertible bond conversion dilution will simultaneously suppress EPS and dividend capacity.
• Risk of dual weakening in titanium concentrate volume-price and product structure: 2026H1 titanium concentrate revenue -21.65% YoY, gross margin -5.77pct YoY to 65.08%, revenue share down to 41.21%, while lower-margin vanadium-titanium iron concentrate revenue share rose to 53.16%, structurally dragging overall gross margin down to 60.92% (FY2025 62.29%, 2021 peak 74.50%); meanwhile this industry follows commodity prices moving with the market, and the company lacks active pricing power over titanium concentrate and vanadium-titanium iron concentrate selling prices; since 2023 Xinjiang titanium fine powder capacity has been rapidly released, further changing the domestic supply landscape; if titanium dioxide/sponge titanium prosperity and steel demand continue to weaken, gross margin downward pressure will persist.
• Risk of high customer concentration: the company's top five customers (consolidated basis) revenue as a proportion of operating revenue was 64.27% in 2020, 63.86% in 2021, 60.17% in 2022 (another methodology 61.86%), and 63.28% for January-March 2023; for 2023 under the same control basis the top five customers subtotaled 60.06% (Miyi County Guolixing Mining 14.20%, Panzhihua Anlong Mining 13.18%, Pangang Group 13.03%, Qianjiang Fangyuan Titanium Dioxide 10.12%, Jiangxi Tianguang Titanium 9.53%), and all of the above are 2023 and earlier data; the latest period 2024, 2025 annual report top five customer proportion could not be obtained; if downstream titanium dioxide or steel customers experience demand fluctuations or reduce procurement, it will directly impact the company's sales.
• Uncertainty risk at the equity structure and market information level: there is a major methodology conflict in repurchase disclosure, with the official 2025 annual equity distribution implementation announcement showing the repurchase special securities account holds only 203,400 shares, while the Shenzhen Stock Exchange Interactive Easy Q&A states 2026 repurchases had reached 14,000,650 shares, a difference of approximately 70x; the Interactive Easy figure should not be adopted; meanwhile only 9 institutions had disclosed holdings in 2026Q2, and the top ten circulating shareholders showed changes including Wu Dongping newly entering, Ying Yicheng exiting, and Yang Juncheng et al. reducing holdings (data as of 2026-06-30, subject to disclosure lag), creating uncertainty in institutional participation and shareholding stability.

VIII. Conclusion and Outlook

The growth logic is mainly built on the mining-materials integration strategy of "horizontal resource M&A + vertical industry chain extension." On the resource side, Panjiatian Iron Mine has retained ore of approximately 244.033 million tons (6 million tons/year industrial-grade ore + 3 million tons/year low-grade ore), and the newly acquired Xiaoheiqing Jingzhi Iron Mine has retained resources of 113 million tons, with current designed capacity of 2.6 million tons/year industrial-grade ore; if resumption of production proceeds smoothly and low-grade ore recovery is prioritized, it will expand resource scale and dilute mining and processing costs; the company responded on September 11, 2026 that it is "advancing as planned, prioritizing low-grade ore recovery," but gave no hard resumption timetable. On the materials side, if the Titanium 6 Project enters trial production on schedule before end-October 2026, it will drive the company's extension from a pure upstream resource end to sponge titanium-titanium materials deep processing, capturing higher value-added and hedging single product structure risk; Western Securities forecasts 2026-2028 net profit attributable to parent of RMB 712/809/900 million, EPS RMB 1.51/1.71/1.91, and institutional consensus EPS growth for 2027E/2028E of +13.75% and +13.07% respectively, implying assumptions of gradual incremental contribution from the titanium materials project.

At the same time, short-term suppression factors should be viewed objectively: titanium concentrate prices fluctuate with titanium dioxide/sponge titanium prosperity, vanadium-titanium iron concentrate prices fluctuate with steel and vanadium prices; this industry follows commodity prices moving with the market rather than an annual price reduction logic, and the company itself finds