The hottest performance fell 11618. Yibin Paper in

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Performance fell by 116.18% in recent March, Yibin Paper industry had few restructuring expectations

as a large paper production enterprise in the western region, St Yibin Paper () has a worrying prospect

the company released a semi annual report today, showing that the sample breakpoint was good. The company achieved a total output of 80301 tons of paper products, a year-on-year increase of 13.09%, and an operating revenue of 395 million yuan, a year-on-year increase of 14.43%, but its net profit was a loss of 11.4253 million yuan, a sharp year-on-year decrease of 116.18%

for the company's losses, St Yizhi explained that in the first half of the year, although the global economy continued to slowly recover, economic turbulence increased, inflation accelerated, raw fuel prices continued to rise, and it was difficult for paper prices to rise. At the same time, double offset paper and food paper entered the off-season, and the company's external business environment was extremely severe

in fact, this is not the most fundamental reason for St Yizhi's loss. It is understood that most listed paper companies did not suffer losses in the first half of the year

according to the company's annual reports over the years, the company's gross profit margin has shown an overall downward trend in recent years, and is significantly lower than the industry average. In terms of sales profit margin, although there is little difference between the company's various expense rates and the industry average over the years, the gross profit margin is significantly lower than the industry average, so even in profit years, the sales profit margin is only maintained at a low level of about 1.5%, significantly lower than the industry average

st Yi paper is the largest paper, food packaging base paper and cultural paper production enterprise in the western region, and also the first domestic paper production enterprise. At present, the pulping capacity is 200000 tons/year, and the design capacity of paper products is 160000 tons/year

in June 2007, St Yiping paper was stopped production for rectification for nearly half a year due to environmental protection failure. Due to poor management, St Yizhi has suffered losses for many years since 2006. The losses in 2006 and 2007 were 64.91 million yuan and 88.54 million yuan respectively. In 2008, after receiving a total government subsidy of 24.55 million yuan, a meager net profit of 4.85 million yuan was realized. However, in 2009, St Yizhi lost another 63.84 million yuan. After achieving a profit of 10.27 million yuan in 2010, the operating income in the first quarter of this year was 160million yuan, but another loss of 6.49 million yuan

in order to solve the dilemma of St Yizhi, the local government plans to relocate st Yizhi and launch a new project. At the same time, many paper-making enterprises such as Chenming Paper (000488) () and MCC Paper Group, a central enterprise, have planned to acquire st Yizhi paper, but they have failed

after the withdrawal of foreign enterprises such as Chenming Paper and MCC Paper Group, the local government can only place its hope on Wuliangye (000858) group, the second largest shareholder of St Yizhi paper. At present, Wuliangye Group holds 16.06% of the equity of Yizhi according to the tested range of St electronic tensile testing machine, second only to Yibin state owned Assets Management Co., Ltd

on April 27 this year, St Yizhi issued an announcement that may involve the company's equity matters, and then suspended trading. On May 10, St Yizhi announced that the relevant government departments had not reached an agreement on the company's equity in the cooperation project negotiated with a company, and the cooperation negotiation had been terminated, and the company had no major issues such as asset restructuring in the next three months

the head of a local association in Sichuan previously told China business news that the main reason for the failure of the cooperation was that Wuliangye Group was unwilling to accept the more stringent conditions proposed by the government

an analyst in the paper industry once told this newspaper that st Yizhi can only hope for restructuring in the future, otherwise it is difficult to get out of the business dilemma

from August to October this year, the old area of St Yizhi paper will start to stop production and start land disposal related work. Complete the project construction of the new area by the end of 2012. The new area will retain food paper and cultural paper. Examples of plastic shrinkage experiments with this mold are the following two products. In the new area, 95000 tons of chemical bamboo pulp, 68000 tons of chemical mechanical pulp, 100000 tons of food paper and 100000 tons of cultural paper will be built

however, whether st Yizhi has enough funds for construction is still a problem. The data shows that the asset liability ratio of St Yizhi paper has continued to rise for a long time. In recent years, due to the deterioration of operating conditions, the ratio has increased to more than 95%, which was 97.9% in 2010. It is close to the insolvency state, and the capital security is extremely low. In the same period, the industry's average asset liability ratio was only 59.33%

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