Due to the fewer working days during the Spring Festival, Rongcheng lost 0.23 yuan per share before tax in January.

(Provided by Rongcheng)

[Reporter Huang Haochen/Taipei Report] Paper Mill Rongcheng (1909) announced today that its self-consolidated revenue in January was 2.89 billion yuan, a monthly decrease of 33.5% and an annual decrease of 37.64%, hitting a new low in the past 34 months since March 2020. Mainly due to the fewer working days during the Spring Festival in January this year and the impact of the epidemic situation in China still at its peak, Rongcheng also announced a pre-tax loss of 304 million yuan in January, and a consolidated pre-tax EPS loss of 0.23 yuan.

Last year, due to the impact of China’s anti-epidemic policy, the supply chains of various industries in China were interrupted, and private consumption was greatly affected, which dragged down Chinese paper mills throughout the year since the beginning of the year. In addition, 80% of Rongcheng’s revenue came from China. The business climate is closely related. The company reported a pre-tax loss of 853 million yuan last year, and a loss per share of 0.67 yuan.

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Faced with difficulties, Rongcheng has arranged annual factory repairs since January this year. It is currently expected that the epidemic situation in China will gradually cool down, and local economic activities will gradually return to normal. At present, the legal person is optimistic that the prosperity of China’s industrial paper industry will gradually recover this year, and the utilization rate of Rongcheng’s factories will increase. Gradually go back to 100%.

Director Rongcheng said that in the past, China’s epidemic situation was blocked and controlled, which affected the development of China’s industrial paper. It is estimated that based on international and Taiwan’s experience, China’s industrial paper market is expected to gradually return to normal after February this year. The factory will be built later to maintain market supply and demand, so that the price of industrial paper will not collapse. In the case of inventory digestion, it will be conducive to the subsequent economic rebound.

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