Core Viewpoint - The article discusses the recent price adjustments by Nine Dragons Paper, led by Zhang Yin, in response to rising operational costs and the cyclical nature of the paper industry, highlighting the challenges and strategies in navigating a fluctuating market [4][5][6]. Group 1: Cost Pressures - The paper industry is highly cyclical, with prices closely tied to macroeconomic changes, leading to significant pressure on companies like Nine Dragons Paper [14]. - Since 2021, paper mills have been releasing capacity while downstream demand has not kept pace, forcing companies to adjust prices frequently to maintain market share [17][18]. - As of July, the average price of waste paper has decreased by 0.66% month-on-month, while the price of corrugated paper has dropped by 1.41%, indicating that raw material cost reductions are not sufficient to alleviate profit pressures [19][20]. Group 2: Navigating the Downturn - Zhang Yin has led Nine Dragons Paper for nearly 30 years, with the company experiencing its first loss in 2023, amounting to 2.38 billion RMB [35]. - Despite the downturn, there are signs of market recovery, with improved demand for packaging paper and a gradual increase in market conditions [36][37]. - The company has successfully reduced inventory levels, with stock decreasing to 9.5 billion RMB, a reduction of 647 million RMB year-on-year [24]. Group 3: Capacity Expansion - Zhang Yin is focusing on increasing control over raw material supply by investing in upstream integration, including acquiring paper mills in the U.S. and establishing recycling operations in China [46]. - Nine Dragons is expanding its production capacity, with new projects in Guangxi and Hubei expected to increase annual design capacity to 8.19 million tons and paper production capacity to 25.37 million tons [48][49]. - The total assets of Nine Dragons reached 138.71 billion RMB by the end of 2024, reflecting a significant increase in investment in property, plants, and equipment [52].
235亿东莞纸业女王，熬过低谷