The hottest listed packaging group revealed that i

The listed packaging group revealed that the production expansion plan is expected to spend 17.5 million to purchase equipment

release date: Source: financial news agency economic link China Station

on September 14, Jifeng packaging held a performance conference. Zhengxianjun, chairman of international Jifeng packaging group, revealed that the company will grow to 13 factories on the basis of the current 11 factories. In the future, the group will upgrade production equipment and purchase new machines to further improve the level of automation

in the first half of the year, Jifeng packaging had a revenue of about 882million and a gross profit of about 168million

International Jifeng packaging group released its interim results for the six months ended June 30, 2020. During the period, the company recorded an operating revenue of about 882million yuan (the same below), a decrease of about 10.1% over the same period last year; The net profit attributable to the owners of the company was about 29.5 million, an increase of about 21.4% over the same period last year. The board of directors has decided not to declare any interim dividends

as for the resumption of the company's orders, Zheng Xianjun, chairman of international Jifeng packaging group, said that the COVID-19 had the greatest impact on the company in January and February. In January, due to the successive closure of the city, many customers' contacts were in trouble. "We began to resume work in February, and the monthly orders have decreased. The orders have returned to normal since March. The monthly orders have increased slightly over the same period last year, indicating that the impact on us has slowly recovered."

he added that it also depends on the customer's industry and business. If the customer is in export business, it will be affected for a long time, but if it is in domestic demand related industries, it is believed that it will recover faster. He is confident in the growth of China's domestic demand market in the second half of the year

during the period, the company's operating income from selling corrugated packaging products was about 804million, a decrease of about 10.0% over the same period last year, accounting for about 91.1% of the company's total operating income during the period. The decline in sales of corrugated packaging products was mainly due to the decrease in sales at the early stage of the outbreak of the COVID-19

the operating income from the sales of corrugated board was about 78.8 million, a decrease of about 11.4% over the same period last year, accounting for about 8.9% of the company's total operating income during the period

during the period, the company's gross profit was about 168million, a decrease of about 4.7% over the same period last year; The gross profit margin was 19.1%, an increase of 1.1 percentage points over the same period last year. The management of the company said that because Taicang factory returned to the normal product structure and gross profit level this year at the initial stage of investment in expanding the use of POM in new fields last year, the state also has an exemption policy for employees' social security, driving the rise of gross profit margin

in the future, the company will grow to 13 on the basis of the existing 11 factories

talking about the future development direction, Zheng Xianjun said that the company will consolidate its market leading position in the Bohai rim and Yangtze River Delta, grasp the opportunity of the epidemic and post epidemic era, continue to expand the territory of Shandong and Guangdong factories, integrate the regional business advantages of the group, and provide customers with higher value services

the company has previously decided to establish new factories in Shandong Province and Foshan City. The Shandong plant is still under construction and is expected to be completed in September 2020; The location of Foshan factory has been selected and determined, and it is expected to start construction in October 2020. Zheng Xianjun said that the annual production capacity of the Shandong plant can be increased by more than 76 million square meters. It is expected to be officially put into operation in October, so its real production capacity is expected to play in 2021. Foshan factory can increase the new production capacity of more than 70 million square meters, which is expected to be completed in July next year

he continued that the company would grow to 13 from the current 11 factories. In the first half of the year, the capital expenditure was about 37million, and the main equipment came from Japan, Germany, China and Taiwan. The epidemic slowed down in the second half of this year, and many indicators have returned to normal levels. The company is confident that the performance in the second half of this year will grow to last year's level

in the future, production equipment will be upgraded and new machines will be purchased, with a total estimated cost of about 17.5 million

he pointed out that the mainland production indicators have gradually recovered from the earliest aluminum and copper products. With the Mid Autumn Festival, double 11 and double 12 and other peak seasons, he is confident that the domestic demand market will recover in the second half of this year, while the fourth quarter of this year is the traditional peak season. The group resumed work earlier, and business has returned to normal in March, It is confident that the group can recover the turnover affected by the epidemic in the first half of the year in the second half of the year

he said that in the future, the group will upgrade production equipment and purchase new machines to further improve the level of automation. It is expected that after upgrading the equipment, an additional capacity of 20million square meters will be added, and the total cost of upgrading the equipment is expected to be about 17.5 million yuan. It is expected that the paper price will rise slightly in the second half of the year, but the current demand has not yet recovered, and it is difficult for the paper price to rise to a historically high level

video conference question session

Zheng Xianjun, chairman of international Jifeng packaging group, and other management attended the video conference and answered questions. Excerpts are as follows:

1. Can we catch up with the reduced orders in January and February this year

Jifeng packaging: we have been catching up with the laggard parts in January and February since March, about 10% behind. It began to recover in the second quarter, and the third quarter is also a good recovery momentum. The fourth quarter is the traditional peak season. We have the performance characteristics of horizontal tension machine and hope to make up for the orders reduced in January and February in the second half of the year

2. Capital expenditure in the second half of the year

Jifeng packaging: in the second half of the year, it is mainly invested in Shandong factories, and the existing factories have sporadic investment, which will be decided according to the actual situation

3. How about the capacity utilization rate of the company's production line

Jifeng packaging: this year's capacity utilization rate has gradually increased since the occurrence of COVID-19, from a low utilization rate in January and February to nearly 82% in August and approximately 80% in June. The capacity utilization rate in East China is high, with a maximum of 98%. The capacity utilization rate in Northeast China is relatively low, but by August, the capacity utilization rate gradually recovered to more than 80%. We are confident that we will continue to improve in the future on the basis of August

4. Corrugated paper cost and price trend in the future

Jifeng packaging: affected by the epidemic in January and February, waste paper could not be collected, which increased the cost of waste paper. In March, the paper mill significantly increased the paper price, and in late March, the paper price fell again. As for the paper price in the second half of the year, I personally believe that electromechanical 1 must import servo electromechanical products, which will be affected by the epidemic. The end of all imported waste paper this year will also increase the supply cost of raw materials. Due to the Mid Autumn Festival, double 11 and double 12, the market demand is at a high point. The fourth quarter is the peak season for traditional paper, which may rise slightly, but this year, affected by export, epidemic and other factors, the price still needs to be observed

5. How much did e-commerce contribute to the company's performance in the first half of the year? The layout of e-commerce in the second half of the year

Jifeng packaging: affected by the epidemic, the company's e-commerce business increased significantly in March, but the offline business began to recover slowly in March. On the whole, our online business declined slightly in the first half of the year compared with last year, but the offline business began to recover in March. With the 9.9 promotion, double 11 and double 12 promotion, e-commerce business should continue to grow in the second half of the year