Gelonghui, March 12, 丨 Zhengye International (03363.HK) announced that for the year ended December 31, 2023, the Group's corporate equity holders are expected to record losses of about RMB 15 million to RMB 20 million, and the profit attributable to equity holders of the company in 2022 (“same period last year”) is RMB 471.6 million.
The main reason why the company's equity holders should account for losses: due to weak domestic consumer demand in China and export factors, there was a serious imbalance between supply and demand in the paper and paper products industry in the first half of 2023. Product prices continued to fall, and the Group's sales revenue fell sharply by about 18 to 22% compared to the previous year. In the first half of 2023, energy costs were too high due to the main use of natural gas energy, and the Group's papermaking sector recorded annual operating losses for the first time. The market picked up in the second half of 2023, and the Group's overall product sales revenue increased. At the same time, the company invested in biomass boilers to supply steam to reduce energy costs, and the profit situation improved greatly in the second half of the year.
The Group believes that in 2024, with the restoration of the imbalance between supply and demand for paper and paper products, and the company will continue to develop low-volume paper products with high added value, the profitability of the paper business will further improve. At the same time, the packaging sector will further expand the FMCG packaging and home appliance packaging business. It is believed that the company will continue its business conditions in the second half of 2023 in 2024, and product sales and profits are expected to grow.