JINGXING PAPER(SZ:002067)2022-12-04 09:44Group 1: Market and Regulatory Environment - The import quota for waste paper has been decreasing, with a 40.78% drop in 2019 compared to 2018, resulting in a quota of 1,075.19 thousand tons [3] - The company is adjusting its raw material ratio to increase the use of domestic waste paper and reduce reliance on imports [3] - The management remains optimistic about industry development despite restrictions on waste paper imports [3] Group 2: Financial Health and Investment Strategy - The company has a low debt-to-asset ratio and has not expanded production capacity in recent years due to environmental and regulatory constraints [4] - The company plans to invest 2 billion in a project in Malaysia, which includes a phase one capacity of 800,000 tons of waste paper pulp and a phase two capacity of 600,000 tons of paper [4] - The company has been cautious in its expansion strategy, which has contributed to its low debt levels [4] Group 3: Project Development and Progress - The Malaysian project aims for a total production capacity of 1.4 million tons, with 800,000 tons of waste paper pulp and 600,000 tons of packaging paper [4] - The environmental impact assessment for the Malaysian project is in the final approval stage, with updates submitted to the authorities [5] - The project timeline has been delayed due to the COVID-19 pandemic, affecting the construction start date [5] Group 4: Product Strategy and Market Position - The company plans to primarily use the waste paper pulp for internal consumption, with potential for increased production of high-end products in the future [6] - The company has shifted focus to life paper products, which turned profitable in 2019 after previous losses [7] - The company is currently focusing on raw paper sales, with some exports of life paper due to international demand [7]