Linping Development, a packaging paper manufacturer, has gone through an IPO.
On June 25, the Shanghai Stock Exchange announced that the IPO of Anhui Linping Recycling Development Co., Ltd. ("Linping Development") on the Shanghai Main Board was accepted, and the company plans to raise 1.2 billion yuan.
The prospectus shows that Linping Development is mainly engaged in the research, development, production and sales of corrugated paper and containerboard products for packaging. It is a high-tech enterprise with independent research and development and innovation capabilities; after years of development, Linping Development has grown into a resource comprehensive utilization enterprise integrating waste paper utilization, cogeneration and green papermaking. Linping Development has always attached great importance to environmental protection and energy conservation and consumption reduction. The company has achieved resource recycling and sustainable development through waste paper utilization, sewage treatment, white water and reclaimed water reuse, biogas combustion power generation, sludge reuse, cogeneration, green manufacturing and other processes.
Linping Development's main products include corrugated paper and containerboard. The company's products are sold downstream to make corrugated boxes, which are widely used in logistics and transportation, industrial products and consumer product packaging. During the reporting period, Linping Development's main customers included: Xiamen International Trade Group Co., Ltd., Xiamen Hexing Packaging and Printing Co., Ltd., Xiamen Jianfa Co., Ltd., Shanying International Holdings Co., Ltd., Wuxi Shengyuan Paper Products Co., Ltd., etc.
According to the data in the "China Paper Industry 2024 Annual Report" published by the China Paper Association, in 2024, the number of paper and paperboard production enterprises in the country will be about 2,600, of which 30 will have an annual output of more than 1 million tons. Domestic papermaking enterprises can be roughly divided into three echelons. The first echelon is represented by Nine Dragons Paper, Sun Holdings, Lee & Man Paper, and Shanying International, with an annual output of more than 5 million tons. The number of enterprises is relatively small; the second echelon is represented by Chenming Paper, Bohui Group, Rongcheng Environmental Protection, Huatai Group, China Paper and Linping Development, a group of medium-sized papermaking enterprises, with an annual output of 1 million to 5 million tons; the third echelon is small and medium-sized enterprises with an annual output of less than 1 million tons, and the number of enterprises is large.
Linping Development has a current production capacity of 1.2 million tons. In 2024, the company's base paper production will total 1.0197 million tons. The company's base paper production ranks among the top in the country. It is one of the top 30 papermaking companies in the country, and its output is in a leading position among the average levels of industry companies.
According to the annual report of the paper industry published by the China Paper Association, in 2024, Linping Development's base paper production accounted for 35.65% and 0.75% of Anhui Province's paper and paperboard production and the national paper and paperboard production, making it a major papermaking enterprise in Anhui Province. In the future, as the fundraising and investment projects are completed and put into production, Linping Development's total base paper production capacity will increase from 1.2 million tons/year to 2.4 million tons/year, and the issuer's market position and competitiveness in the base paper field will be further enhanced.
In terms of performance, from 2022 to 2024, Linping Development achieved revenue of 2.879 billion yuan, 2.8 billion yuan and 2.485 billion yuan, and net profits of 154 million yuan, 212 million yuan and 153 million yuan.
In this IPO, Linping Development plans to raise 1.2 billion yuan to invest in the annual production of 900,000 tons of green and environmentally friendly intelligent manufacturing new materials project (Phase II) and the annual production of 600,000 tons of bio-based fiber green intelligent manufacturing new materials project.
Linping Development said that in line with the trend of industry changes and the company's business development needs, the fundraising and investment projects will promote the company's product upgrades and iterations in major product areas such as corrugated paper and containerboard, and improve the company's ability to supply products in a timely manner, thereby increasing the company's product market share and profitability; the industrial packaging paper industry can more effectively enhance profitability by exerting scale effects, and it belongs to an industry with obvious scale effects. The implementation of this fundraising and investment project will help the company consolidate its advantageous product sequence, optimize the company's product structure and business layout, further meet the diversified needs of customers, improve the quality of products and services, exert economies of scale, enhance the ability to supply combined products, and improve the company's comprehensive competitive advantage.
In addition, some of Linping Development's corrugated paper production lines were purchased earlier, and the automation level and production efficiency of the production lines were relatively low. Through the implementation of this fundraising and investment project, outdated production capacity will be eliminated or production lines will be upgraded, new intelligent production lines will be built, product technology and equipment upgrades will be accelerated, product series will be enriched, product structure will be improved, and the quality and production efficiency of the company's products will be improved.
