On July 30, Taiwan Zhenglong paper held a shareholders’ meeting, which was attended by Chairman Zheng Shuyun, vice chairman Zheng Renming and general manager Cai Donghe.
Zhenglong looks forward to the second half of 2021. As the epidemic situation is still uncertain, the company takes a cautious view on the future development of operation, and emphasizes that it will continue to expand the circular economy at home and abroad and promote the layout of green business opportunities of “smart low-carbon smart paper”.
In 2020, Zhenglong’s consolidated revenue was 40.074 billion yuan (NT $), although it decreased by 0.78% year-on-year and fell to the low point in recent three years, its gross profit margin was 26.49% and its operating profit rate was 12.52%, respectively reaching the high point in recent 35 years and 26 years. The net profit after tax attributable to the parent company was 3.727 billion yuan, with an annual increase of 61.8%, and the earnings per share (EPS) was 3.36 yuan, the second highest in the history of entrepreneurship and innovation.
Cai Donghe, general manager of Zhenglong, said that although the overall business environment has faced many challenges affected by the epidemic since last year, the demand of the global paper industry has maintained positive growth. According to the statistics of Taiwan Paper Association, last year, the annual consumption of industrial paper, white paperboard and household paper increased by 4.5%, 12% and 7.5% respectively. The consumption reached a new high in recent years, while the demand for cultural paper was flat.
Cai Donghe said that Zhenglong’s long-term layout in the field of packaging paper and its success in operating Taiwan’s paper market for many years, coupled with the effective development of low-carbon cycle, led to the good performance of continued payment in operation last year. Since this year, Europe and the United States have successively unsealed to drive global economic growth. The booming housing economy under the epidemic has driven the booming demand of the paper industry, resulting in the growth of Zhenglong’s revenue and profit in the first half of the year compared with last year.
Looking forward to the second half of the year, Cai Donghe said that he was cautious about the future development of the operation under the condition that the epidemic situation was still uncertain. Although there are still many uncertain factors in the world, low-carbon sustainable packaging materials will become the international mainstream. The prosperity of online shopping in the post epidemic era will continue to drive the demand for paper packaging, consumers’ demand for household cleaning products will also increase, and the overall industrial paper and household paper market will flourish.
In order to grasp business opportunities and develop green operation of circular economy, Zhenglong will continue to expand its layout and investment in circular economy strongholds at home and abroad, actively promote “smart paper”, improve the performance of energy and resource integration, including expanding the processing capacity of recycled paper, increasing the proportion of green energy and promoting digital management, and continue to move towards the goal of low-carbon green energy new paper industry in Asia.
Zheng Long pointed out that the annual production capacity of paper and paperboard in Taiwan, Chinese mainland and Vietnam will increase by 400 thousand tonnes to 250.2 metric tons in 2022, and the annual capacity of paper will increase by 180 million square meters to 1 billion 907 million square meters. Taiwan Dayuan factory has set up a new 66000 ton recycled white pulp line, which will further expand the supply of high-value white paper products.
At the same time, Zhenglong actively entered the household cleaning products market. Last year, it launched “Dandelion” environmental protection lotion and alcohol wiping towel. In the future, it will continue to launch new products to promote sports energy. Cai Donghe pointed out that Zhenglong is actively distributing in Southeast Asia. The phase II industrial paper production capacity of Vietnam Pingyang paper mill is expected to be completed by the end of the year, and the phase III plan has been launched.
In addition, Zhenglong has implemented low-carbon energy conservation and digital transformation. Since 2019, it has promoted 12 projects such as intelligent steam and electricity, intelligent production and marketing, and set up wind and solar power generation systems in three plant areas. In order to continuously establish low-carbon green energy renewable energy, Zhenglong Dayuan paper mill will start biogas power generation before the end of the year.
Zhenglong Zhubei power plant has introduced a high-efficiency biomass thermal power system with an annual power generation of 126 million kwh, which is expected to be officially put into operation in the first quarter of next year. Then, Li plant and Taichung material plant also plan to add solar panels next year to improve green power output. In total, the total green power device capacity of Zhenglong will increase nearly twice compared with the end of last year in 2022, and actively transition to low-carbon smart paper.
Post time: Aug-12-2021