证券研究报告 ＃industryId＃ 造纸 公 司 跟 踪 报 告 | --- | --- | |----------------------------|--------------------------------| | | | | ＃市场数据 marketData ＃ | | | 日期 | 20240306 | | 收盘价（港元） | 3.46 | | 总股本（亿股） | 47 | | 流通股本（亿股） | 47 | | 净资产（亿元） | 499 | | 总资产（亿元） | 1,423 | | 每股净资产（元） | 11.81 | | 数据来源： Wind | ，兴业证券经济与金融研究院整理 | ＃相关报告 relatedReport＃ 海外原材料研究 分析师：韩亦佳 SFC：BOT963 SAC：S0190517080003 hanyij@xyzq.com.cn ＃investSuggestion＃ 增持 ( ＃ investS uggesti onChan ge＃ 首次 ） ＃ dyStockco de＃ 02689.HK ＃玖龙纸业 dyCompany＃ 港股通（沪/深） 盈利修复，成本控制 ...

Investment Rating - The report assigns a "Buy" rating to the company with a target price of HKD 4.57, indicating a potential upside of 25.9% from the current price of HKD 3.63 [2][6][18]. Core Insights - The company has achieved a turnaround to profitability, reporting a net profit of RMB 2.92 billion in 1HFY24, compared to a net loss of RMB 13.89 billion in the same period last year. This aligns with previous profit forecasts [3][10]. - The successful commissioning of new plants in Beihai and Malaysia has led to a double-digit growth in sales volume, which increased by 16.3% year-on-year to 10 million tons in 1HFY24 [4][13]. - Capital expenditures are expected to gradually decline as the company continues to advance its integrated pulp and paper strategy, enhancing its vertical supply chain advantages [5][17]. Financial Performance Summary - For 1HFY24, the company recorded operating revenue of RMB 30.611 billion, a slight decrease of 1.9% year-on-year. However, gross profit surged by 294.4% to RMB 2.706 billion, with a gross margin improvement of approximately 6.6 percentage points to 8.8% [3][10]. - The company’s annual paper production capacity reached 21.12 million tons by the end of 2023, an increase of 2.35 million tons year-on-year [4][13]. - The projected earnings per share (EPS) for the fiscal years 2024, 2025, and 2026 are expected to be RMB 0.21, RMB 0.52, and RMB 0.70, respectively [6][18].

Financial Performance - The group's sales increased by 16.3% to approximately 10.0 million tons[2] - Revenue decreased by 1.9% to approximately RMB 30,611.2 million[2] - Gross profit increased by 294.4% to approximately RMB 2,705.6 million[2] - Profit attributable to equity holders of the company was approximately RMB 292.4 million[2] - Basic earnings per share increased to approximately RMB 0.06[5] - Operating profit for the period was RMB 1,243.5 million, compared to a loss of RMB 861.6 million in the previous year[4] - The company reported a comprehensive income of RMB 73.1 million, compared to a loss of RMB 1,619.0 million in the previous year[6] - Revenue for the six months ended December 31, 2023, was RMB 30,611,229 thousand, a decrease of 1.9% compared to RMB 31,198,020 thousand for the same period in 2022[15] - The company reported a profit attributable to equity holders of RMB 292,436,000 for the six months ended December 31, 2023, compared to a loss of RMB 1,388,795,000 for the same period in 2022[25] - Basic earnings per share for the six months ended December 31, 2023, was RMB 0.06, recovering from a loss of RMB 0.30 in the same period of 2022[25] Assets and Liabilities - Total assets increased to RMB 128,912.3 million from RMB 120,651.0 million[8] - Total liabilities rose to RMB 83,702.8 million from RMB 75,514.6 million[8] - The company’s non-current assets increased to RMB 97,287.4 million from RMB 91,196.5 million[7] - As of December 31, 2023, the company's long-term bank and other loans amounted to RMB 47,750,687 thousand, an increase from RMB 43,180,730 thousand as of June 30, 2023[14] - The company's trade payables increased to RMB 12,221,264 thousand as of December 31, 2023, compared to RMB 9,648,322 thousand as of June 30, 2023[33] Inventory and Receivables - Inventory as of December 31, 2023, was RMB 9,410,876,000, up from RMB 8,855,674,000 as of June 30, 2023[27] - The company recognized a reversal of previously written down inventory amounting to RMB 268,777,000 during the six months ended December 31, 2023[28] - Trade receivables as of December 31, 2023, amounted to RMB 3,360,052,000, an increase from RMB 3,086,387,000 as of June 30, 2023[29] - The company reported an expected credit loss of RMB 19,111,000 on trade receivables for the six months ended December 31, 2023, compared to no losses in the same period of 2022[31] - The company's total inventory write-down to net realizable value was RMB 58,653,000 for the six months ended December 31, 2023[28] Expenses and Taxation - Employee benefit expenses increased to RMB 2,021,605 thousand, up 3.9% from RMB 1,946,290 thousand in the prior year[16] - Total income tax expense for the six months was RMB 295,418 thousand, compared to a tax credit of RMB 43,005 thousand in the same period last year[18] - The effective corporate income tax rate for subsidiaries in mainland China is 25%, with some qualifying for a reduced rate of 15%[19] - Administrative expenses decreased by approximately 11.9% to about RMB 1,079.3 million, representing 3.5% of total revenue[43] Production and Capacity - The total designed annual production capacity for fiber raw materials is 4.72 million tons, with 2.17 million tons of pulp, 0.70 million tons of recycled pulp, and 1.85 million tons of wood fiber[36] - The company plans to increase its total designed annual production capacity for fiber raw materials to 7.04 million tons, including 4.07 million tons of pulp and 2.27 million tons of wood fiber[37] - The company is on track to complete new production capacity projects, including 1.70 million tons of pulp and 2.00 million tons of paper by 2025[38] Risk Management and Outlook - The company has effectively improved profitability through optimized raw material structure and cost reduction measures[36] - The company has reduced operational, currency, and cash flow risks to a minimum through enhanced risk management[36] - The outlook for the second half of the fiscal year is optimistic due to the implementation of national stimulus policies, which are expected to boost consumer confidence and demand in the packaging paper industry[54] - The company will consider timely arrangements for currency and interest rate hedging to mitigate associated risks due to current currency market volatility[53] Corporate Governance - The group has adopted new accounting standards effective from July 1, 2023, with no significant impact on performance or financial position[12] - The company has complied with the corporate governance code as per the listing rules during the reporting period[57] - The audit committee has reviewed the accounting principles and internal controls adopted by the group during the period[56] Dividends - The company did not declare an interim dividend for the six months ended December 31, 2023, consistent with the previous year[26] - The board has decided not to declare an interim dividend for the six months ended December 31, 2023, consistent with the previous year[55]

智通财经APP获悉，玖龙纸业(02689)盘中涨近7%，截至发稿，涨5.99%，报3.36港元，成交额3061.13万 港元。 消息面上，据生意社消息，2月1日，玖龙纸业多基地发布春节后上调纸价的通知，自2月22日(正月十 三)起，旗下东莞、太仓、天津、沈阳、湖北六大基地牛卡、再生、瓦纸上调30元/吨。这是一周内玖龙 公司发出的第二轮涨价函。此前，玖龙也发出涨价通知，宣布自2月1日起，旗下东莞、太仓、天津、沈 阳、湖北、重庆七大基牛卡芯纸普涨30元/吨。 浙商证券指出，FY24H1扭亏为盈，盈利中枢向上修复。24Q1春节停机检修市场供应量减少，预计价格 及吨盈利存在一定支撑。进口冲击趋于平滑、国内需求弱补库预期下，24年盈利或震荡修复。2024 年 进口零关税维持，国内龙头维持压缩产业链利润策略，在国内需求弱补库、纸价弱震荡预期下，2024年 进口纸增量将趋于平滑，预计盈利及价格中枢随需求波动震荡。 ...

智通财经APP获悉，玖龙纸业(02689)涨超6%，截至发稿，涨6.21%，报3.08港元，成交额2096.76万港 元。 消息面上，玖龙纸业近期公告，预计截至2023年12月底止六个月净利约2至4亿元人民币，此前一年同期 录亏损13.89亿元人民币。期内亏转盈利，主要是由于产品销售量增加，原材料成本下降幅度大于产品 销售价格下降幅度，导致毛利率上升。 此外，据生意社消息，2月1日起，玖龙纸业东莞、太仓、重庆、天津、湖北、沈阳、泉州基地将涨价， 涨幅为30元/吨，主要涉及牛卡纸与瓦楞纸。华泰证券表示，虽然短期市场仍有挑战，但行业拐点正在 渐行渐近。预计公司有望逐步享受到行业整体供需改善与自身竞争力提升的共振，盈利修复有望实现较 强弹性。 ...

Group 1 - Nine Dragons Paper Holdings Limited (玖龙纸业) experienced a decline of over 4%, with a current drop of 5.26%, trading at HKD 2.88, with a transaction volume of HKD 28.84 million [1] - The company announced an expected net profit of approximately RMB 200 to 400 million for the six months ending December 2023, a significant recovery from a loss of RMB 1.389 billion in the same period last year [1] - The turnaround to profitability is attributed to an increase in product sales volume and a decrease in raw material costs, which outweighed the decline in product sales prices, leading to an increase in gross margin [1] Group 2 - Morgan Stanley noted that the first half of the year is traditionally a low-demand season for paper producers due to weak demand during holiday periods [1] - However, supply is expected to remain high, with over 4 million new paper production capacity set to commence operations in 2024, which will further intensify market supply pressure [1] - Despite limited downside potential, the ongoing supply-demand mismatch is expected to continue exerting pressure on the paper industry, particularly affecting paper prices and Nine Dragons' earnings in the second half of 2024 [1]

Financial Performance - Revenue for the fiscal year 2022/2023 decreased by 12.1% to RMB 56,739.4 million from RMB 64,538.1 million in the previous year[9]. - Gross profit dropped significantly by 78.1% to RMB 1,530.2 million compared to RMB 6,991.9 million in the prior year[9]. - The company reported an operating loss of RMB 1,595.2 million, contrasting with an operating profit of RMB 3,587.1 million in the previous year[9]. - Net debt increased by 34.3% to RMB 46,310.4 million from RMB 34,476.4 million year-on-year[9]. - The total debt to total assets ratio increased by 7.0 percentage points to 62.6% from 55.6%[9]. - The company did not declare any interim or final dividends for the fiscal year 2022/2023, compared to RMB 8.0 and RMB 2.0 per share in the previous year[9]. - The basic and diluted loss per share for the year was RMB (50.8), a significant decline from earnings of RMB 69.8 per share in the previous year[9]. - The net loss attributable to equity holders for fiscal year 2023 was approximately RMB 2,383.4 million, a significant decline from a profit of RMB 3,275.4 million in fiscal year 2022, mainly due to a decrease in packaging paper prices and gross margin[54]. - The group reported a net loss of RMB 2,370.8 million for the fiscal year 2023, compared to a profit of RMB 3,310.5 million in fiscal year 2022[65]. Market and Product Development - The company is focusing on developing environmentally friendly products, including 100% recycled paper products to meet customer demands[14]. - The company plans to expand its market presence and enhance product offerings to adapt to changing customer needs and environmental standards[14]. - The company reported a slight increase in sales despite a challenging economic environment, with a focus on utilizing self-produced wood fiber and pulp advantages[31]. - The company aims to optimize fiber raw material structure to stabilize product quality and costs while increasing the proportion of high-end products for sustained profit growth[30]. - The company offers high-strength corrugated paper ranging from 45 to 180 grams per square meter, with low grammage options (45, 50, 60, 70 grams) leading the industry[18]. - The company provides coated gray bottom whiteboard paper, which is used for high-quality printing applications, particularly in small color box packaging[20]. - The company has developed a range of coated white cardboard products suitable for various consumer goods packaging, including pharmaceuticals and cosmetics[5]. - The company aims to enhance its production capacity and expand its market presence, particularly in environmentally friendly packaging paper products[68]. Operational Efficiency and Cost Management - The company has implemented cost-saving measures and flexible pricing strategies in response to market changes, ensuring cash flow stability[31]. - The company operates advanced production lines, including high-speed corrugated board lines, to meet diverse customer needs[27]. - The company aims to achieve production and sales balance and return to reasonable profitability in the coming year[34]. - The company is actively developing new products and customer sources to enhance competitiveness despite challenging market conditions[37]. - The company has a total designed annual production capacity of over 2.8 billion square meters for downstream packaging plants[37]. - The company plans to increase its fiber raw material capacity to 6.83 million tons, including 4.07 million tons of wood pulp, 0.70 million tons of recycled pulp, and 2.06 million tons of wood fiber[39]. - The company currently has a paper production capacity exceeding 20 million tons, with plans to add 4.25 million tons of new capacity in high-end product categories over the next two years[39]. Environmental Commitment - The company emphasizes its commitment to environmental protection and energy conservation, using recyclable waste paper as a primary raw material[68]. - The company has integrated environmental risk factors into its risk management assessment list, with regular evaluations conducted by the environmental department[74]. - The company has increased the procurement and usage ratio of domestic waste paper since 2018 to fill the gap left by the ban on imported waste paper, enhancing its raw material reserves[80]. - The company aims to capture market opportunities arising from China's "plastic restriction order" by expanding its production capacity for food-grade white cardboard and paper bags[84]. - The company has implemented advanced emission control technologies, achieving a desulfurization efficiency of over 95% and a dust removal efficiency of 99.95%[110]. - The company has established a professional energy operation team to enhance its natural gas business capabilities and has secured cooperation with major domestic energy companies[111]. - The company has established a comprehensive governance framework to address climate change risks and has implemented policies to mitigate these risks[90]. - The company has achieved a recycling rate of over 97.2% for wastewater, with a target of 97.5% for FY2025[99]. Employee Management and Safety - As of June 30, 2023, the company employed a total of 23,079 full-time employees, with 20,773 in China, 588 in Vietnam, 597 in Malaysia, and 1,121 in the United States[161]. - The employee turnover rates are 14% in China, 16% in Vietnam, 26% in the United States, and 26% in Malaysia[164]. - The company adheres to safety regulations and has established a safety management department to enforce safety protocols and minimize health risks[165]. - The company provides competitive salaries and benefits, including various allowances and insurance, to ensure employee welfare[160]. - The company has a comprehensive emergency response plan for extreme weather events to ensure the normal operation of raw material and finished product transportation[158]. - The company conducted over 2,747 emergency drills in the current fiscal year, compared to 1,793 in the previous fiscal year, indicating a significant increase in safety training efforts[166]. - The total number of work-related injuries reported was 36, with 2 fatalities, and a total of 3,333 lost workdays due to injuries, a decrease from 6,981 lost days in the previous fiscal year[168]. Community Engagement and Corporate Social Responsibility - The company donated over RMB 28 million in various charitable activities during the fiscal year[187]. - In the Guangdong Province "6.30" event, the company contributed RMB 22 million, supporting education and poverty alleviation in underdeveloped areas[188]. - The company has cumulatively donated over RMB 290 million to the "6.30" project over twelve years, receiving the "Guangdong Poverty Alleviation Red Cotton Cup" gold award[188]. - The company has supported over 300 students from impoverished families through its "Big Love for Small Cities" project since 2014[194]. - The company actively participates in community development and poverty alleviation efforts, improving rural infrastructure and living conditions[187]. Risk Management and Compliance - The company has established a "Group Audit Supervision Department" to maintain objectivity and independence in governance and prevent corruption[185]. - The company has implemented standardized business processes using SAP and office automation systems to reduce the feasibility of corruption[185]. - The company has a dedicated internal audit department and legal team to ensure compliance with intellectual property laws and regulations[182]. - The company has established a comprehensive employee management code to promote ethical conduct and corporate culture[184].

Financial Performance - Revenue decreased by approximately 12.1% to RMB 56,739.4 million, primarily due to a decline in product selling prices during the fiscal year 2023[2] - Gross profit decreased by approximately 78.1% to RMB 1,530.2 million[2] - The loss attributable to equity holders of the company for the fiscal year 2023 was approximately RMB 2,383.4 million, with a basic loss per share of RMB 0.51[2][4] - The company reported a comprehensive loss of RMB 2,275.1 million for the fiscal year 2023[5] - The company reported a net loss of RMB 2,370,839 thousand for the year ended June 30, 2023, compared to a profit of RMB 3,310,501 thousand in the previous year, indicating a significant decline in performance[8] - The operating loss for fiscal year 2023 was approximately RMB 1,595.2 million, compared to an operating profit of RMB 3,587.1 million in fiscal year 2022, primarily due to the decline in gross margin[44] - The net loss attributable to equity holders for fiscal year 2023 was approximately RMB 2,383.4 million, a significant decline from a profit of RMB 3,275.4 million in fiscal year 2022, mainly due to a decrease in packaging paper prices and gross margin[49] Assets and Liabilities - Total assets increased to RMB 120,651.0 million from RMB 107,080.8 million in the previous year[6][7] - Non-current assets rose to RMB 91,196.5 million, up from RMB 74,459.4 million in the previous year[6] - Current liabilities increased to RMB 28,070.98 million from RMB 18,191.5 million in the previous year[7] - Total liabilities rose to RMB 75,514.6 million, compared to RMB 59,575.5 million in the previous year[7] - Trade payables as of June 30, 2023, amounted to RMB 3,277.5 million, compared to RMB 2,650.9 million in the previous year[34] - The company reported a significant increase in long-term bank loans, rising to RMB 43,180.7 million from RMB 36,861.7 million year-over-year[14] - The group’s shareholder equity as of June 30, 2023, was approximately RMB 45,136.4 million, a decrease of about RMB 2,368.9 million or approximately 5.0% compared to June 30, 2022[51] Cash Flow and Investments - Operating cash flow for the year was RMB 6,924,487 thousand, up from RMB 3,030,496 thousand in the previous year, reflecting improved operational efficiency[8] - The company invested RMB 17,424,026 thousand in investment activities, an increase from RMB 12,321,554 thousand in the previous year, indicating a focus on expansion and development[8] - Financing activities generated a net cash inflow of RMB 11,136,472 thousand, compared to RMB 8,920,623 thousand in the previous year, suggesting increased borrowing or capital raising efforts[8] - The company’s cash and cash equivalents at year-end increased to RMB 10,317,488 thousand from RMB 9,654,344 thousand, reflecting a positive cash position despite operational losses[8] Inventory and Receivables - Inventory decreased to RMB 8,855.7 million from RMB 12,170.1 million in the previous year[6] - The total inventory as of June 30, 2023, was RMB 8,855,674,000, a decrease from RMB 12,170,100,000 in 2022, with cost of goods sold for the year amounting to RMB 54,940,449,000 compared to RMB 57,546,222,000 in the previous year[28] - Trade receivables decreased to RMB 3,086,387,000 as of June 30, 2023, from RMB 3,682,958,000 in 2022, while notes receivable increased to RMB 1,373,742,000 from RMB 1,268,153,000[29] Expenses - Depreciation expenses rose to RMB 3,691,597 thousand from RMB 2,937,717 thousand, indicating increased asset utilization or capital investments[15] - Employee benefits expenses increased to RMB 4,014,510 thousand from RMB 3,652,758 thousand, reflecting higher labor costs[15] - Selling and marketing expenses increased by approximately 8.6% to about RMB 2,124.4 million in fiscal year 2023, accounting for approximately 3.7% of total revenue, up from 3.0% in fiscal year 2022[42] - Administrative expenses rose by about 11.0% to approximately RMB 2,577.0 million in fiscal year 2023, representing about 4.5% of total revenue, up from 3.6% in fiscal year 2022[43] - Net financial expenses increased by approximately RMB 415.5 million or 58.4% to about RMB 1,126.8 million in fiscal year 2023, attributed to an increase in total loans from RMB 44,241.0 million to RMB 56,773.3 million[45] Dividends - The company did not declare any dividends for the fiscal year 2023[2] - The company did not declare any interim or final dividends for the fiscal year ending June 30, 2023, while it paid a final dividend of RMB 0.02 per share in 2022, totaling RMB 469,222,000[25] - The company has decided not to declare a final dividend for the year ending June 30, 2023, compared to a dividend of RMB 0.02 per share for the fiscal year 2022[57] Market and Production Capacity - The main source of sales revenue remains the packaging paper business, accounting for approximately 89.9% of total sales revenue[36] - As of June 30, 2023, the total designed annual production capacity for fiber raw materials was 4.62 million tons, with paper production capacity at 20.02 million tons[36] - The company plans to expand its fiber raw material capacity to 6.83 million tons upon completion of all projects, enhancing vertical integration advantages[37] - New production projects are expected to add 4.25 million tons of paper production capacity, bringing total designed capacity to 24.27 million tons[38] - The total sales volume reached approximately 16.6 million tons in fiscal year 2023, an increase of about 3.4% from 16.0 million tons in fiscal year 2022, driven by a rise in sales volume in the Chinese market[40] Future Outlook - The company believes that opportunities and challenges will coexist in the post-pandemic era, with a focus on balancing production and sales, optimizing raw material layout, and innovating products to meet market demand[56] - The company aims to achieve long-term profit growth by reducing costs and increasing efficiency while ensuring safety and green production[56]

Financial Performance - The company reported a significant increase in revenue, with a year-on-year growth of 15% in the first half of 2022/2023, reaching HKD 10.5 billion[3]. - The company achieved a revenue of approximately RMB 31,198.0 million, representing a decrease of approximately 9.5% compared to the same period last year, primarily due to an 11.4% drop in average selling price offset by a 2.4% increase in sales volume[63]. - The company reported steady sales compared to the same period last year, but profitability was unsatisfactory due to soaring power costs and the need for production suspension to destock[35]. - Gross profit for the Period was approximately RMB686.1 million, a decrease of approximately RMB3,994.5 million or 85.3% compared to RMB4,680.6 million in the corresponding period last year, with gross profit margin decreasing from 13.6% to approximately 2.2%[65]. - The operating loss for the Period was approximately RMB861.6 million, compared to an operating profit of RMB2,888.3 million in the corresponding period last year, mainly due to the decrease in gross profit margin[67]. - The net loss attributable to the equity holders of the Company amounted to approximately RMB1,388.8 million, compared to a profit of RMB2,774.7 million in the corresponding period last year, primarily due to a substantial decrease in gross profit margin[69]. - The total comprehensive loss for the period was RMB 1,619,032, compared to a comprehensive income of RMB 2,790,211 in the same period of 2021[117]. Market and Growth Strategy - User data indicates a 20% increase in customer base, reflecting strong demand for the company's products[3]. - The company has provided a positive outlook for the next quarter, projecting a revenue growth of 10% to 12%[3]. - The company is expanding its market presence in Southeast Asia, targeting a 25% increase in market share by the end of the fiscal year[3]. - A strategic acquisition of a local competitor is expected to enhance production capacity by 30%[3]. - The company plans to invest HKD 500 million in upgrading its manufacturing technology to improve efficiency and reduce costs[3]. - The company is focusing on developing white cardboard and other market-relevant products while optimizing management systems and enhancing cost reduction and efficiency measures[39]. - The Chinese government's economic stimulus policies in 2023 are expected to create demand for packaging paper, marking a potential turnaround for the industry[40]. Sustainability Initiatives - New product development includes the launch of eco-friendly linerboard made from 100% recovered paper, catering to environmentally conscious customers[10]. - The company has initiated a new sustainability strategy aimed at reducing carbon emissions by 15% over the next three years[3]. - The multilayer laminated greyboard made from recycled waste paper is used for environmentally-friendly packaging materials[23]. - The recycled fiber multifunction office paper under the Sea Dragon brand is made from recovered paper, aligning with environmental requirements[25]. Financial Management and Risks - The company has implemented effective cash flow and financial risk management measures, maintaining a "zero" bad debt status to eliminate capital chain rupture risks[39]. - The adverse impact of high inflation, geopolitical tensions, and rising costs of energy and chemicals has significantly affected the company's profit performance[49]. - The Group's financial risk management includes exposure to foreign exchange risk, interest rate risk, credit risk, and liquidity risk[135]. - The Group aims to minimize interest risk through loan refinancing and negotiation, with ongoing monitoring of the loan portfolio[74]. - The Group's treasury policy is designed to achieve better control of treasury operations and lower funding costs[74]. Production Capacity and Expansion - The company has commenced production at its wood pulp processing lines with a total capacity of 1.70 million tonnes in Hubei, Dongguan, and Chongqing, with additional lines in Shenyang and Beihai to follow[41]. - Future production capacity for fibre raw materials is expected to exceed 7.40 million tonnes, including 4.07 million tonnes of wood pulp, 1.30 million tonnes of recycled pulp, and 2.06 million tonnes of wood fibre[41]. - Nine Dragons Paper currently has a paper production capacity of 18.77 million tonnes, with an expansion plan to add 6.25 million tonnes of new capacity for virgin kraftliner, bleached folding boxboard, and sack kraft paper[43]. - The company plans to expand its downstream packaging capacity by a total of 440 million sq.m. in Zhenjiang and Quanzhou, with an estimated total annual design production capacity exceeding 2.80 billion sq.m. upon project completion[55]. - The total annual design production capacity for downstream packaging plants is expected to exceed 2.8 billion sq.m. after the completion of current expansion projects[54]. Governance and Compliance - The company has a structured risk governance framework overseen by the Board, with the Executive Committee implementing the framework through the Risk Control Committee[4]. - The Corporate Governance Committee is tasked with developing and reviewing corporate governance policies and practices, ensuring compliance with legal and regulatory requirements[2]. - The interim report has been reviewed by the Audit Committee, ensuring the accuracy of the financial information presented[23]. - The company has not disclosed specific financial performance metrics in the provided content, focusing instead on governance and compliance[1]. Shareholder Information - The Board does not recommend the payment of an interim dividend for the six months ended 31 December 2022, compared to RMB8.0 cents per ordinary share for the same period in 2021[25]. - As of 31 December 2022, the total number of issued ordinary shares is 4,692,220,811[87]. - Ms. Cheung Yan holds a total of 3,113,811,942 shares, representing approximately 66.36% of the total shareholdings[86]. - The interests of directors and chief executives in the company as of 31 December 2022 have been documented, indicating significant shareholdings among key personnel[84].

Financial Performance - For the fiscal year ending June 30, 2022, the company reported revenue of RMB 64,538.1 million, an increase of 4.8% compared to RMB 61,574.1 million in the previous year[13]. - Gross profit decreased significantly to RMB 6,991.9 million, down 40.2% from RMB 11,690.9 million in the prior year, resulting in a gross margin of 10.8%[13]. - Operating profit was RMB 3,587.1 million, a decline of 58.0% from RMB 8,541.7 million year-over-year[13]. - The net profit attributable to equity holders was RMB 3,275.4 million, down 53.9% from RMB 7,101.1 million in the previous year[13]. - The basic earnings per share decreased by 53.9% to RMB 69.8, down from RMB 151.3 in the previous year[13]. - In the fiscal year 2022, the company's sales revenue was approximately RMB 64,538.1 million, an increase of about 4.8% compared to the fiscal year 2021[50]. - The average selling price increased by approximately 8.0%, while sales volume decreased by about 3.0%, leading to the overall revenue growth[50]. - The net profit for the fiscal year 2022 was RMB 3,310.5 million, a decrease from RMB 7,168.0 million in the previous year, reflecting a decline of approximately 53.8%[68]. Cash Flow and Debt - Cash generated from operating activities increased by 20.4% to RMB 3,030.5 million, compared to RMB 2,516.8 million in the previous year[13]. - The company's net debt rose to RMB 34,476.4 million, a 43.9% increase from RMB 23,965.6 million in the previous year[13]. - Total outstanding loans increased by approximately RMB 10,130.1 million to about RMB 44,241.0 million, with short-term and long-term loans comprising 16.7% and 83.3% of total loans, respectively[63]. - The company's cash and cash equivalents, along with unutilized bank financing, amounted to approximately RMB 77,092.4 million as of June 30, 2022[62]. Capital Expenditures and Investments - Capital expenditures surged by 108.3% to RMB 12,621.4 million, compared to RMB 6,060.2 million in the previous year[13]. - The company invested over RMB 800 million in capital expenditures for new and upgraded environmental facilities during the year[87]. Production Capacity and Expansion - The current paper production capacity of the company stands at 18.17 million tons, with ongoing expansions adding a total of 6.85 million tons of new capacity focused on high-end products[37]. - The company plans to increase its pulp and recycled pulp production capacity by an additional 3.12 million tons and 600,000 tons respectively, along with 1.1 million tons of wood fiber, to enhance its raw material structure and upstream capabilities[36]. - The total designed annual production capacity for packaging paper, cultural paper, high-value specialty paper, and pulp products was approximately 19.0 million tons as of June 30, 2022[50]. - The total designed annual production capacity for downstream packaging plants is expected to exceed 2.8 billion square meters after the completion of ongoing projects[42]. Environmental Initiatives - The company is committed to environmental management and low-carbon governance as part of its operational strategy[39]. - The company has obtained "China Environmental Labeling Product" certification and multiple international management system certifications, demonstrating its commitment to environmental standards[79]. - Over 90% of the wood pulp purchased by the company this year has been certified by the Forest Stewardship Council (FSC) or the Programme for the Endorsement of Forest Certification (PEFC)[79]. - The company has implemented advanced wastewater treatment processes that exceed industry standards[96]. - The company has established a central environmental monitoring system that maintains 24-hour online monitoring of environmental operations across its bases[126]. Employee and Safety Management - The company employed 20,098 full-time employees and held 908 patents as of June 30, 2022, with an additional 178 patents pending[49]. - The group reported a total of 30 work-related accidents in the fiscal year 2022, a decrease from 36 in fiscal year 2021, and 39 in fiscal year 2020[147]. - The group achieved a vaccination rate of over 99.5% among employees as of June 30, 2022[146]. - The average training hours per employee increased by 37% year-on-year to 20.7 hours in the fiscal year 2022[151]. Corporate Governance and Community Engagement - The company emphasizes good corporate governance, maintaining a high level of transparency and accountability to stakeholders[163]. - The company has implemented strict anti-corruption measures, including regular audits and training for key positions[164]. - The company donated approximately RMB 70 million in various charitable activities during the fiscal year, including RMB 22 million for poverty alleviation in Guangdong[166]. - The company has established the Jiulong Scholarship and Jiulong Assistance Fund to support education initiatives[182].