In the first half of this year, the number of loss-making companies in the country's paper and paper products industry was 1,009, a year-on-year increase of 4.56%; the loss was 4,702 million yuan, a year-on-year increase of 14.71%. As a listed company that reflects the barometer of the paper industry, the first half of the year's performance is also mostly loss-making, and each paper company has pointed to the cause of excess losses. Shandong Chenming Paper Group Co., Ltd. said that in the first half of the year, China's pulp and paper market was relatively flat under the influence of the domestic economic environment, and the overall market development was weak.

Due to the slowdown of economic growth and market demand, the paper product market has intensified due to the periodical surplus of some paper types. Fujian South Paper Co., Ltd. believes that in the first half of the year, the domestic newsprint and cultural paper market still had a severe overcapacity. The selling price continued to fall, and the inherent disadvantages and difficulties of the company's inherent high logistics and electricity costs did not change. The company's production and operation and survival and development faced serious difficulties and challenges. Zhejiang Jingxing Paper Co., Ltd. stated that the company ’s Leading products are mainly used for the outer packaging of goods such as daily chemicals, household appliances, and food. The demand for products is closely related to the economic situation, especially the retail situation of social consumer goods. As a heavy capital manufacturing industry, the industry has not yet entered a monopoly operation. At the development stage, companies still prefer to expand production capacity and increase market share as a means of competition in order to increase market power. After the centralized release of production capacity from 2002 to 2008 and the economic crisis, excess production capacity has become a common consensus in the industry.

In recent years, tissue paper, packaging paper, and special paper are the “cakes” in the eyes of papermaking companies. Some companies have launched new tissue paper projects, and some have restructured and expanded onto the “Yangguan Road” of tissue paper. The market's keen sense of smell has always been a basic capability that enterprises must have, but as a result of this coax, several companies can "taste" the sweetness of "cake". In the first half of the year, Zhongshun Jierou Paper Co., Ltd. realized main business income of 1,125.8 million yuan, a year-on-year increase of 0.37%; the net profit attributable to owners of the parent company was 36,155,900 yuan, a year-on-year decrease of 55.65%. The company said that due to the continuous increase in the capacity of the tissue paper market, elimination of backward production capacity and the weakness of the cultural printing paper market, in recent years, new capacity projects for domestic high-end tissue paper have been concentrated, resulting in overheated investment and capacity growth exceeding the market. Demand has increased, and the industry has entered a period of overcapacity. Foshan Huaxin Packaging Co., Ltd. stated in the report that in the paper packaging industry, the decline in the demand for high-end tobacco, alcohol and high-end consumer goods in the domestic end-market, which has produced packaging paper products. In the past two years, the newly-increased production capacity of various types of white cardboard has been released intensively, and the market has become more homogeneous, which has brought unprecedented pressure on the market.

These factors have brought huge difficulties and challenges to the company's operations. Due to the sluggish market conditions in the paper industry, some paper grades have a period of excess capacity and fierce homogeneity competition, and the original capacity cannot be released quickly. Many new capacity projects have been postponed indefinitely or directly killed, plus environmental protection costs. With the continuous increase, paper companies have begun to explore new directions for development in order to obtain new points of profit growth. In the future, the paper industry is fighting for innovation and R & D capabilities, and listed paper companies are beginning to realize this. Although Chenming achieved operating revenue of 9.082 billion yuan in the first half of the year, a year-on-year decrease of 9.43%, and net profit attributable to shareholders of listed companies was 242 million yuan, a year-on-year decrease of 27.28%, but R & D investment was 186 million yuan, a year-on-year increase of 20.80%. Chenming has stepped up innovation and research and development, and established a professional sales team for high value-added products such as thermal paper and glassine paper, which not only keeps the company relatively profitable, but also builds a "wind-resistant wall" for the company .

Diversification is also an effective way to protect the traditional paper industry during the downturn. Shandong Sun Paper Co., Ltd. combined with the actual situation of its own development and the development trend of the industry, at the beginning of 2014, it proposed the "four three, three, three" strategic transformation and development goal, that is, on the basis of improving technical production, the profit of traditional papermaking now accounts for The ratio was reduced to 40%, and two new categories were implanted. Firstly, the fast-moving consumer goods such as household paper, wet tissues, and diapers have a proportion and structure of 30%, which is slightly smaller than the current profit structure; secondly, 30% of new material products, including dissolving pulp and xylose. Sun Paper said that in view of the high leverage and high financial costs of the paper industry, the company's focus in 2014 will be on optimizing the debt structure, focusing on internal cost control and optimizing existing capacity, improving scale efficiency and production efficiency, and continuously improving quality control and production. effectiveness. Experiencing the worst severe storms and transitioning from the rapid development stage to the stable and sustainable development stage test the wisdom and courage of the company. Facing the contradiction of overcapacity, China's paper industry has begun to enter the field of special papers that have not been fully developed in order to win new development space. Although the market space is broad, if it is still produced like other paper types, special paper estimates It is also difficult to escape excess fate. Therefore, what China's papermaking needs in the future is not simply a manufacturer. It must not just look at the immediate interests. It must set out its own long-term plan from its own perspective, and not follow the trend blindly.