[Epoch Times October 30, 2021](Epoch Times reporter Liu Yi comprehensive report) Zhongshun Jierou Paper Co., Ltd. (Zhongshun Jierou), known as the The price of its products was adjusted. On the 29th, Zhongshun Jierou shares rose by 7% during the intraday session.
According to reports on the 29th from the Mainland “Securities Times” and many other media, the mainland “Zhu Mao” (Moutai in the paper industry) Zhongshun Jierou issued a price adjustment notice on the 28th. The notification letter stated that the company’s production costs and operating costs have continued to increase due to the recent increase in raw material prices. After the company’s research, it has been decided to adjust the prices of Zhongshun Jierou’s products from January 1, 2022. The specific adjustments to products and prices will be The official documents recently delivered by the company responsible for the business shall prevail.
According to news from the “Daily Business News” on the 29th, Zhongshun Jierou rose sharply in late trading on the 29th, and its stock price rose by 7% within three minutes. As of the close, it was reported at RMB 17.04 per share, an increase of 6.37%.
This is after Haitian soy sauce, Qiaqia melon seeds and other categories that involve mass consumption announced price increases, and then prices of commodities related to mass life.
In addition to household paper, as the “Double 11” approach is approaching, the peak season for paper consumption in the mainland has arrived, and packaging paper has also risen. On the afternoon of October 25, Nine Dragons Paper issued 4 price increase letters in one day. On October 26, Nine Dragons Paper issued six price increase letters again, announcing that starting from November 1, the seven bases of Nine Dragons Dongguan, Taicang, Tianjin, Quanzhou, Hebei, Chongqing, and Shenyang will comprehensively increase the price of corrugated paper and cattle card. Paper prices generally rose by RMB 100/ton.
Nine Dragons Paper mentioned in its previous price increase letter that this price adjustment was due to the continuous sharp increase in the prices of waste paper, coal, chemicals and other raw and auxiliary materials, which led to soaring papermaking costs.
Talking about the recent increase in paper prices, Wang Xiaoya, the person in charge of Dongguan Chengyi Paper Products Co., Ltd., said: “Since September, we have received more than a dozen price increase letters in this month.”
Since July, the price of pulp has remained at a high level of around RMB 6,300/ton, which has a significant impact on the performance of related companies in the third quarter.
The three quarterly report released by Zhongshun Jierou on October 28 showed that the company achieved revenue of approximately 2.027 billion yuan (RMB, the same below) in the third quarter, a year-on-year increase of 4.54%. The net profit attributable to the parent was approximately 77.26 million yuan, a year-on-year decrease of 64.72%. In the first three quarters, the company achieved revenue of approximately 6.274 billion yuan, a year-on-year increase of 12.95%. The net profit attributable to the parent company was approximately 484 million yuan, a year-on-year decrease of 27.88%.
According to the report, operating costs from the beginning of the year to the end of the reporting period increased by RMB 928,513,100.53 compared to the same period in 2020, an increase of 31.32%, which was mainly caused by factors such as rising material prices, changes in category structure, and increased freight costs.
Rising prices of raw materials have hurt the profits of many mainland companies. The three-quarter report of Golden Dragon Fish Grain, Oil and Food Co., Ltd. on October 30 showed that the net profit of the first three quarters was 3.681 billion yuan, a year-on-year decrease of 27.68%. Among them, the net profit in the third quarter was 711 million yuan, a sharp drop of 65.86% year-on-year. Arowana said that one of the reasons for the decline in profit was that during the reporting period, the cost of raw materials increased significantly, and the company’s production and operation costs were under greater pressure. Although the company raised the prices of some products, it did not fully offset the impact of rising raw material costs, and profits were squeezed.
When Haitian Soy Sauce and Qiaqia Seeds raised their product prices, they all indicated that the increase in raw material costs was the main reason.
Zhongshun Jierou is the first A-share listed household paper company in mainland China, specializing in the production of household paper products. The company currently has three major brands: Jierou, Taiyang, and Duo Lei Mi, and its products focus on paper rolls, coreless paper rolls, pumping paper, paper handkerchiefs, wet wipes, personal care products, baby diapers, cotton soft towels, etc.
Editor in charge: Ye Ziming
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