Zheng Long executives revealed the reasons for closing the Shanghai factory at the end of the year. Since last year, three factories in Dongguan, Chongqing and Tianjin have been shut down.
As Zheng Long had previously announced that Shanghai Zhonglong Paper would completely stop production at the end of 20 17, the concerns of minority shareholders were aroused. At the shareholders' meeting that day, the chairman, general manager and He successively responded to this question.
Zheng Shuyun, chairman of the board of directors, said that due to the great changes in the environment around the Shanghai factory, the environmental protection requirements of the authorities for clean energy have become more stringent. The company calculated that the energy cost was about 63 million RMB, and decided to stop production because there was no production and operation benefit.
General manager He pointed out that the Shanghai factory is located in Pudong New Area, covering an area of about 22.2 kilometers. Because the surrounding area has changed from agricultural land to high-rise area, and it is only 10 km away from Disney, we decided to stop production and close the factory to measure environmental factors and production costs. The Shanghai subsidiary contributed about 9% of its revenue and is still collecting relevant disposal information. Disposal of land can certainly guarantee shareholders' rights and interests.
In fact, as early as 2065438+July 27th, 2006, Zheng Long Group announced through the media that it would start the integration plan of industry and paper business in Chinese mainland. Zheng Long said that in view of the group's sluggish industrial and paper business in Chinese mainland, which has suffered losses for three consecutive years, the company will gradually adjust the capacity planning of Chinese mainland paper mill in 2-3 years.
At the seminar held in June, 20 16, Cai Dong, the general manager of Zheng Long, pointed out that China's overcapacity led to intensified competition. In the first half of 20 16, Zheng Long successively transferred the paper mills in Dongguan, Guangdong Province, and the paper mills in Chongqing and Tianjin stopped production and reduced staff, and leased them to other enterprises. The equipment and production capacity of the factory were integrated into Guangdong Houjie Paper Mill, and the order was not lost.
Zheng Long's consolidated revenue this year1-may 17 1 billion, and its after-tax net profit was 387 million.
The consolidated revenue of Zheng Long in 2065438+2006 was 40.085 billion yuan, down 7.62% year-on-year, to the lowest point in the past six years. However, its gross profit margin is 65.438+07.38%, and its profitability is 4.77%, reaching the highs of the past six years and four years respectively. After-tax net profit was 65.438+29.6 billion yuan, with an annual increase of 654.38+00.73%, and earnings per share was 654.38+0.654.38+07 yuan, a record high of nearly six years.
From 2065438 to the first five months of 2007, Zheng Long earned1765438+68 million yuan, with an annual increase of 8.36%. In the first quarter, industry profits continued to rise, reaching the peak of nearly seven quarters. Although the industry was affected by exchange losses, its after-tax net profit still reached 387 million yuan, with a quarterly increase of 565,438+0.44% and an annual increase of 2.42 times. The basic earnings per share was 0.32 yuan, better than the fourth quarter of last year and the same period.
Zheng Long: The competition in the paper industry is becoming more and more fierce. The Group will continue to integrate its domestic and foreign strongholds and deepen its market in Taiwan Province Province.
Looking forward to 20 17, Zheng Long predicts that there are still many uncertainties in the global economic situation, but the overall economy is expected to maintain a slow recovery, and the economy of Taiwan Province Province is also expected to improve slightly. Other new paper machines in the same industry are put into production one after another, which leads to increasingly serious competition in the paper industry.
Zheng Long said that the Group will deepen the market in Taiwan Province Province, improve the utilization rate of production capacity, advocate green innovation, and enhance overseas management and talent localization. In terms of production, we will ensure favorable sources of materials, stabilize supply chain management, innovate and change, save energy and reduce emissions, strengthen customer service, optimize inventory management, implement environmental safety and health, and pursue sustainable development.