In the first half of 2022, the international environment became more complex and severe, the domestic epidemic in some areas multi-point distribution, China’s socio-economic impact of the impact of more than expected, economic pressure further increased. Paper industry suffered a sharp decline in performance of the dilemma, in the face of the complex situation at home and abroad, when and the situation in me, we need to maintain the determination and confidence, and actively respond to new problems and challenges, I believe that we will be able to continue to ride the wave, stable and far. #Coated Paper Cup Roll

First, the paper industry in the first half of the year suffered a performance slump dilemma

The latest industry data show that from January to June 2022, China’s paper and paperboard production of 67,724,000 t, compared with 67,425,000 t in the same period of the previous period, an increase of only 400,000 t. Operating income increased by 2.4% year-on-year and total profit fell by 48.7% year-on-year, a figure that indicates that industry-wide profit in the first half of this year was only half that of last year. And at the same time, operating costs increased by 6.5%, the number of loss-making enterprises reached 2025, accounting for 27.55% of the national paper and paper products enterprises, more than 1/4 of the enterprises in a loss, total losses reached 5.960 billion yuan, an increase of 74.8%. #Coated Paper Cup Fans

Enterprise level, recently a number of listed companies in the paper industry released 2022 first-half performance forecast, many enterprises are expected to reduce profits by 40% to 80%. Summing up the reasons, the main focus is on three aspects: first, the impact of the epidemic, the second is the rise in raw material prices, and the third is the weakening of consumer demand.

In addition, there are also unfavorable factors such as the poor operation of the international supply chain and domestic logistics control, resulting in rising logistics costs. The lack of overseas pulp mill starts and the year-on-year rise in the cost of imported pulp and wood chips, among other reasons. As well as high energy costs, resulting in increased product unit costs, etc.

The paper industry is hampered by this development, which, on balance, is mainly due to the impact of the epidemic in the first half of the year. Relative to 2020, the current difficulties are temporary and predictable, and solutions can be found. In a market economy environment, confidence is also expectation, and it is important for companies to be firm in their confidence. “Confidence is more important than gold”. The difficulties faced by the industry are basically the same, and only with confidence will the current difficulties be solved in a more positive manner. Confidence, mainly from the country is strong, industry resilience, market potential and several other aspects. #Paper Cup Fans

Second, confidence from the country is strong and economic resilience

President Xi Jinping has repeatedly said on important occasions: the more difficult times, the more confidence. China has the confidence and ability to maintain medium-to-high economic growth. President Xi’s important speech conveyed to the world the confidence and strength of China’s high-quality economic development.

Confidence comes from the strong leadership of the Party Central Committee. The Party’s original intention and mission is to work for the happiness of the Chinese people and the rejuvenation of the Chinese nation. Over the past century, it has united and led the Chinese people through many difficulties and dangers to make China stand up and get rich on the road to becoming strong. Especially since the 18th Party Congress, under the strong leadership of the Party Central Committee with Comrade Xi Jinping as the core, we have strived to win the battle against poverty, to win the battle to build a moderately prosperous society and to overcome the challenges of the epidemic of the century. With the Party’s leadership and the support of various policies, we believe that our paper industry will be able to sustain stable development. #Pe Coated Paper

Confidence comes from the strong resilience of China’s economy. In recent years, China has insisted on promoting high-quality economic development, and in the face of a more complex and severe international environment and the challenges of a multi-point domestic epidemic epidemic, China’s economy withstood downward pressure and grew by 2.5% year-on-year in the first half of the year. With the effective implementation of a package of policy measures to stabilize the economy, the rebound of the domestic epidemic has been effectively controlled, the national economy stabilized and rebounded. The endogenous momentum of China’s growth has accelerated, new dynamic energy has grown faster, and production and investment in high-tech industries have maintained faster growth. These are new changes, new growth, are important drivers of China’s economy, driven by new technologies, new models, the paper industry is accelerating the transformation and upgrading, intelligent manufacturing, out of a paper industry, “smart” new road.

Third, confidence from the paper industry crisis resistance training

China’s paper industry is growing up after years of trials and tribulations, continued strict environmental policy measures, forcing paper enterprises to improve the management level and stress resistance, increasingly improve the strategic solutions to face and solve the difficulties, paper enterprises to improve the ability to accelerate the structural upgrading of China’s paper industry. #Pe Coated Paper In Roll

In particular, the global financial crisis in 2008, is China’s paper enterprises face a serious test, when many enterprises have not come out of the inertia of rapid growth thinking, encountering crisis difficulties when many enterprises are full of tension and helplessness, after these years of difficult adjustment and adaptation, now China’s paper enterprises have been able to calm treatment. This change of heart, is the industry grows, the performance of enterprise maturity, mainly reflected in three aspects of the promotion.

First, the paper industry foundation to enhance. At that time, the paper industry development speed is faster, the paper industry structure heightened level is not high, mainly due to the then more backward production capacity. Today, the structure of China’s paper industry is more reasonable, the level of production equipment is more advanced, the product variety is more perfect. Raw material security and supply chain security have been substantially improved. All of these infrastructures have laid the foundation for better development of the paper industry today. #Dihui Paper Cup Fan

The second is the improvement of enterprise management level. At that time, the management awareness of paper enterprises was not strong, relatively sloppy, there were many shortcomings, and some enterprises did not even have crisis emergency management measures and programs. Today more and more paper enterprises to strengthen management construction, management concept continues to strengthen, management system continues to improve, more calm in the face of crisis, but also have more means to solve difficulties.

Third, the international competitive ability to improve. At that time, China’s paper industry is large but not strong, as a whole, the internal work is not enough, the quality of products relative to international competitors there is still a certain gap. Today China’s paper products have been able to fully meet the domestic market demand, dominate the domestic market, and by virtue of scale and cost-effective advantages, began to go overseas. 2022 in the first half of China’s paper and paper products export delivery value reached 35.050 billion yuan, an increase of 36.1%, exports for the highest value in years. #Dihui Paper Cup Bottom Roll

Fourth, confidence from the huge potential of China’s domestic demand market

The more difficult challenges, the more comprehensive dialectical view of the economic situation. The World Bank’s latest research report that the global economy may enter a “low growth and high inflation” of the “stagflationary period”, the global economic growth rate will decline to 2.9% in 2022.

In contrast to the global economic downturn, China’s economic growth is expected to be positive. The World Bank expects China’s GDP to grow at more than 5% again next year and the year after. The root cause of the global bullishness on China is that the Chinese economy is resilient, has sufficient potential and has wide room for maneuver. There is basically a domestic consensus that the fundamentals of China’s long-term economic upturn will not change. Confidence in China’s economic development remains strong, mainly because the bottom line of the Chinese economy is very strong. #Dihui Pe Coated Paper Sheet

China has the advantage of a very large market. China has a population of more than 1.4 billion and a middle-income group of more than 400 million. The demographic dividend is working, and with China’s economic growth, people’s living standards are rising rapidly, and the GDP per capita has exceeded $10,000. Super large-scale market is the biggest bottom of China’s economic growth and enterprise development, but also the paper industry development space is huge, the future is expected to be good reason for the paper industry to deal with the adverse impact of the space to move and room to maneuver.

The country is accelerating the construction of a unified large market. China has the advantage of a large market and huge potential for domestic demand, the country has the foresight to give strategic guidelines in a timely manner. 2022 in April the CPC Central Committee, the State Council issued the “opinions on accelerating the construction of a unified national market”, requiring the acceleration of the construction of a unified national market, boosting consumer confidence, and truly realize the smooth flow of goods. With the implementation and implementation of policies and measures, the domestic unified large market scale further expansion, the domestic whole industry chain more stable, and ultimately promote the Chinese market from large to strong transformation. The paper industry should seize the opportunity of domestic demand market expansion to achieve a leapfrog development of the industry. #Pe Coated Paper Cup Roll Paper

V. Conclusion and outlook

The country’s economy is strong, domestic demand market expansion, industrial structure upgrading, enterprise management improvement, stable and reliable industrial chain and supply chain, huge space market and domestic demand, innovation-driven development of new dynamic energy …… This is the resilience of China’s economic performance, but also macro-control confidence and bottom line, but also the hope of the future development of the paper industry.

No matter how the international storm clouds change, our paper industry should firmly do their own thing to promote the recovery and development of enterprises with solid and effective work. The impact of the current epidemic is easing, if the second half of the year no major recurrence, can be expected in the second half of China’s economy and next year will have a significant rebound, the paper industry will also come out of a wave of growth trend again. #Pe Coated Paper Roll

The Party’s 20th National Congress is about to be held, our paper industry to grasp the strategic and favorable conditions, firm confidence, seek development, I believe that we will be able to overcome the various difficulties and obstacles on the road to development, the paper industry continue to grow bigger and stronger, and create new performance in the new era. #https://www.nndhpaper.com/