China's Shanying Paper expects net profit attributable to shareholders to jump by more than 50% year-over-year to exceed 50M yuan in H1 on containerboard results, cost controls
August 16, 2010
– Shanying Paper Industry Co. expects its net profit attributable to shareholders to surge by more than 50% year-over-year to exceed 50 million yuan (US$7.4 million) in the first half of 2010, according to the company’s midyear performance report issued July 14.
The company’s managing director said that the performance growth was attributed to containerboard results, cost controls and other factors.
The main products of the company are containerboard, newsprint and fine paper. In the 2009 annual report, containerboard accounted for 74.2% of the company’s main income.
The recent processing industry has begun to move to the middle and western regions of China like the provinces of Shandong, Hubei and Anhui, which offered a great market opportunity for Shanying Paper. As the processing industry has a big demand for packaging products, the growing sales of containerboard brought the company remarkable profits.
Moreover, the company optimized its internal control and management. For instance, the company tends to use domestic wastepaper when the price of imported wastepaper is high to try to control raw material cost. In another example, the company adjusted pulp production time and produced pulp at a period of lower electricity consumption to reduce cost.
Shanying Paper ranked 11th, according to listings by China Paper Association in 2009. Even in 2009 when the year was greatly affected by the financial crisis, Shanying Paper maintained a 12% growth.