HXPP(SZ:002228)2022-12-07 09:24Group 1: Company Operations - The company typically selects 2-4 suppliers based on size, with some unique cases of exclusive suppliers [1] - The economic transportation radius for the company's products is generally 100-150 kilometers, necessitating factories in different locations to better serve large clients [2] - The company has production facilities in South China, East China, Central China, Southwest, and North China [2] - The current capacity utilization rate is approximately over 70% [2] Group 2: Financial Aspects - The upstream suppliers usually offer a payment term of 30 days, while downstream clients vary from 30-60 days for the food and beverage industry to 60-90 days for the electronics industry [2] - Fluctuations in pulp prices significantly impact upstream companies, but the company can pass on costs to downstream clients, minimizing its own impact [2] - Most of the company's raw paper is sourced domestically, as many local paper companies can now replace foreign suppliers [2] Group 3: Strategic Initiatives - The establishment of an industrial merger fund is not solely for capacity expansion; it also considers customer resources, capacity structure, and operational teams for future development [3] - The company's market share in the express delivery sector is currently small but is expected to increase with the growth of emerging industries [3] - The recent targeted issuance of new shares aims to enhance production capacity through new facilities and equipment, addressing limitations from leased factory spaces [3]