According to the Zhitong Finance App, Zhengye International (03363) announced annual results for the year ended December 31, 2023. The group recorded revenue of 2,391 billion yuan, a year-on-year decrease of 20.7%. The company owner should have accounted for a loss of 17.553 million yuan, which changed from profit to loss over the previous year. Loss of $0.04 per share. The recommended final dividend is RMB 1.00 per share, which is equivalent to HK$1.10 cents.
According to the report, the paper and paper product packaging industry has always been viewed as a barometer of consumption. The first half of the year was affected by weak consumer demand in mainland China and a serious imbalance between supply and demand, which had a major impact on the group's business. In particular, the group's paper business continued to drop in product unit prices in the first half of the year. Coupled with high energy costs due to the use of natural gas energy, the group's paper business recorded annual losses. In the second half of the year, with the recovery of domestic consumption, the recovery of the paper industry was further boosted. Since the fourth quarter, paper prices have basically stabilized and rebounded, paper sales have increased, the overall business of the Group has increased, and energy costs have been reduced by increasing the steam generation of biomass boilers, which has greatly improved the Group's profit situation.