Linping's IPO application to the Shanghai Stock Exchange has been accepted. The annual production capacity of original paper exceeds 1 million tons.

On June 25th, Anhui Linping Circular Development Co., Ltd. (referred to as Linping Development) submitted its application for an IPO on the main board of the Shanghai Stock Exchange. Minsheng Securities is the sponsor institution, with plans to raise 1.2 billion yuan. According to the prospectus, Linping Development is mainly engaged in the research and development, production, and sales of corrugated paper and box board paper products. After years of development, the company has grown into a resource comprehensive utilization enterprise integrating waste paper utilization, cogeneration of heat and power, and green papermaking. The company's main products include corrugated paper and box board paper, which are sold to downstream manufacturers to be made into corrugated boxes widely used in the logistics, industrial, and consumer goods packaging fields. In terms of competition, China has numerous papermaking enterprises, with a decentralized industry and low market concentration, leading to intense competition. However, there are few large papermaking enterprises with high production capacity, and the production capacity is mainly concentrated in mid-to-low-end products. According to the "China Paper Industry 2024 Annual Report" published by the China Papermaking Association, there are approximately 2,600 paper and paperboard production enterprises in the country, with 30 enterprises producing over 1 million tons annually. The company currently has a production capacity of 1.2 million tons, and in 2024, the company's total raw paper production was 1.0197 million tons, placing it among the top papermaking enterprises in the country. According to the annual report of the China Papermaking Association, the company's raw paper production accounted for 35.65% and 0.75% of the paper and paperboard production in Anhui Province and the country, respectively, making it a major papermaking enterprise in Anhui Province. With the completion and operation of the investment projects, the company's total raw paper production capacity will increase from 1.2 million tons per year to 2.4 million tons per year, further enhancing its market position and competitiveness in the raw paper sector. In terms of sales, the company adopts a direct sales model, with direct customers as the main customer base and trading companies as supplementary customers. The company has been deeply involved in the corrugated paper and box board paper fields for many years, establishing stable cooperation relationships with many well-known domestic companies such as Xiamen Hexing Packaging Printing Co., Ltd., Xiamen C&D Inc., and Xiamen ITG Group Corp. The net proceeds from this issuance, after deducting issuance expenses, will be entirely used for investment projects related to the company's main business. In terms of financials, for the years 2022, 2023, and 2024, Linping Development achieved operating revenues of approximately 2.879 billion yuan, 2.8 billion yuan, and 2.485 billion yuan, respectively. During the same period, the company achieved net profits of approximately 154 million yuan, 212 million yuan, and 153 million yuan, respectively.