Zhongshun Jierou, known as "paper grass", fell 3.98% again on Sept. 1, hitting a new low of 17.60 yuan per share for the year, with a total market capitalization of 23.09 billion yuan, nearly halving from its high in early June.

In May, at a time when share prices were soaring, Deng Yingzhong, the company's chairman, urged employees to increase their holdings and make "bottom-up" promises. Investors who listened to its "call" to rush in at that time may face large losses. Data show that the weighted average transaction price from May 10 to May 31 was 32.56 yuan, down nearly 46% at current prices.

Yesterday, Zhongshun Jierou's semi-annual report for 2021 showed that the company achieved 4.248 billion yuan in revenue in the first half of the year, up 17.46% from the same period last year, while the net profit of shareholders belonging to listed companies was 407 million yuan, down 10.06% from the same period last year.

The company explained that operating costs increased by 32.66% in the first half of the year compared with the same period last year, mainly due to the increase in operating income, the rise in material prices, the change in category structure, the increase in freight and other factors.

Under the condition of increasing income without increasing profits, the company's share price fell by the limit on the 31st and fell today. In the past two months, Shunjie has fallen nearly 50% from its June high.

On May 10, Zhongshun Jierou announced that Deng Yingzhong, the controller of the company, suggested that employees who net bought shares of the company (not less than 1000 shares) from May 10 to May 31 and held them until May 30 next year would be compensated by Deng Yingzhong if losses were incurred, and the income would be owned by the employees.

In addition, the company's secretary also expressed "solidarity" for his stock on the Internet, saying that the company was the cheapest of all consumer goods, with a share price of "six times in four years" and no financing plans in the future.

A series of abnormal operations attracted regulatory attention. After the Shenzhen Stock Exchange sent a letter, the company's board secretary, securities agent and supervisor announced their resignation.

But investors who listen to this and buy have undoubtedly become "high-level catchers". As of the end of June, the number of shareholders in Zhongshun Jierou reached 75400, more than 10, 000 more than at the end of March, according to the semi-annual report.

Many investors shouted to the chairman of the board of directors in the stock bar today, saying that "let the chairman come out to lose money".

Contrary to the impulse buying of investors, the quarterly social security fund reduced its holdings in Zhongshun Jie Rou in the second quarter.

As of the end of the first quarter, the 101 portfolio of the National Social Security Fund held 8.2268 million shares in Zhongshun Jierou, 1.4741 million shares less than at the end of the previous period. By the end of the second quarter, the 101 portfolio of the National Social Security Fund further reduced its holdings by 477400 shares to 7.7494 million shares.

Although Zhongshun Jierou is expensive as "paper grass", it can only be said that in the first echelon, the leading position is not stable.

At today's closing price, Zhongshun Jierou has a market capitalization of 23.1 billion yuan, while Vida International and Hengan Internationgal Group have a market capitalization of 26.958 billion Hong Kong dollars (about 22.4 billion yuan) and 52.058 billion Hong Kong dollars (about 43.3 billion yuan) respectively.

According to the semi-annual report, Hengan Internationgal Group's income was about 9.974 billion yuan (RMB, the same below), down 8.73 percent from the same period last year, and the net profit was about 1.86 billion yuan, down 17.67 percent from the same period last year. Vinda International's revenue in the first half of the year was 7.55 billion yuan, up 19.0 percent from the same period last year, and net profit reached 804 million yuan, up 6.0 percent from the same period last year.

Whether in terms of revenue or net profit scale, Zhongshun Jierou and Hengan Internationgal Group and Vida International have a certain gap, in the industry can only be called the "third".

Data show that from 2015 to 2020, Zhongshun Jierou's market share in household paper increased from 3.6% to 5.8%, while Vinda International increased from 8.4% to 8.8%, while Hengan Internationgal Group's market share decreased from 10.8% to 8.5%.

Affected by the rise in raw materials and other factors, the performance of paper companies this year may be under pressure, A-share "paper grass" in the future performance of Shunjie soft in the secondary market? Everything will have to wait for time to verify.