The most popular paper enterprises with losses in

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In 2018, there were more than 1000 loss making paper enterprises

after the introduction of the most stringent environmental protection measures in the history of 2018, it will undoubtedly make things worse for the already difficult paper industry. It is common for paper mills to stop for rectification, clear production capacity, stagger peak production, sky high price fines, etc. The overall situation of the paper industry in 2018 is not optimistic. The paper industry has expanded its losses, increased its total losses, reduced its total profits and reduced its profitability

current market situation of China's paper industry

I. the loss of enterprises in China's paper industry has expanded

with the continuous deepening of national environmental governance at the same resolution of the full scale, paper enterprises have become the focus of attention. Small paper mills with heavy pollution have been forced to withdraw from the market, and many paper enterprises have suffered losses. In 2018, there were 6704 paper-making enterprises and 1045 loss making enterprises, with a year-on-year increase of 23.5% and a loss of 15.6%, an increase over 2017. At the same time, the loss scale of paper-making enterprises has also expanded. In 2018, paper-making enterprises lost 8billion yuan, a year-on-year increase of 58.3%

data source: the big database of China Business Research Institute

II. The growth of the main business income of China's paper industry

according to the monitoring data of China Business Research Institute, the main business income of China's paper enterprises in 2018 was relatively objective, with the main business income of 137.79 billion yuan, an increase of 8.3% over the same period. Although many paper-making enterprises went bankrupt due to environmental protection, the concentration of Chinese paper-making enterprises has increased, and the main business revenue of large paper-making enterprises has increased, which has driven the main business of the whole industry. Dengshitao, executive vice president of the technology R & D innovation and quality management center of Sanjiao Tire Co., Ltd., said that the revenue has increased

over the past 15 years, according to the source: the large database of China Academy of commerce industry

III. The total profit of China's paper industry fell

due to the limited supply of raw materials, long production costs and sluggish downstream demand, the profit of China's paper enterprises fell in 2018. The total profit of paper enterprises decreased from 83.78 billion yuan in 2017 to 76.64 billion yuan in 2018, a decrease of 8.5%%

data source: the large database of China Business Research Institute

IV. the profitability of China's paper industry has declined

in recent years, the profitability of China's paper industry has shown an increasing trend, with a gross profit margin of over 13% and a sales profit margin of 6.5% in 2017 from 5.2% in 2013. In 2018, the profit of the paper industry decreased, with a gross profit margin of 13.7% and a sales profit margin of 5.5%

data source: China Business Research Institute big database

2019 paper industry forecast

in recent years, some problems accumulated by China's paper industry in the golden decade (2000-2010) have begun to break out, such as high dependence on raw materials, uneven product structure, dependence on imports of high-end paper products, imperfect domestic waste paper recycling system, etc. In 2018, the paper industry was affected by trade frictions, the continuous tightening of environmental protection and the limited supply of raw materials. Due to domestic and foreign troubles, many paper-making enterprises have accelerated the elimination of backward production capacity and began to deploy overseas production capacity. At the same time, paper-making enterprises have developed the line automatic fracture diagram in Figure 2 towards the integration of industrial chain by extending upstream and downstream, so as to control raw materials from the source, reduce costs, develop packaging business and mitigate the impact of market fluctuations on demand

looking forward to 2019, although there are still many uncertain factors in the external environment, the paper industry will still be a year of challenges and opportunities. The paper industry may continue its downturn in 2019. The overall situation of the paper industry is not optimistic. This severe test is like a big wave washing sand. The "leftover" is the king

note: for more information, please refer to the Research Report on the market prospect and investment opportunities of China's paper industry in published by China Business Research Institute

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