According to the annual report issued on March 19, Shanying Intl achieved business income of 24.267 billion yuan in 2018, a year-on-year increase of 39.48%; The net profit attributable to shareholders of the listed company was 3.204 billion yuan, up 59.04% year-on-year; The net cash flow generated by operating activities was 3.248 billion yuan, up 16.84% year-on-year.
In that buyback plan issue by Shanying pap on the same day, the company plans to pay no less than 375m yuan, And the self-owned funds not exceeding RMB 750 million yuan (all inclusive) repurchase the RMB common shares (A shares) issued by the Company in the form of centralized bidding transactions, and the repurchase price shall not exceed RMB 5.58 yuan / share.
The repurchased shares are intended to be used in the Company’s Employee Shareholding Plan, including but not limited to the Employee Shareholding Plan established by the Company’s Incentive Fund Management Measures (2018-2020). It is understood that in addition to the launch of the buyback plan, since 2018, Shanying Paper has been through a number of ways in the secondary market to absorb equity. The total investment of the controlling shareholder, Taisheng Industrial Co., Ltd. is not less than RMB 200 million within 12 months from June 20, 2018 (in case of window period and suspension of trading of Shanying paper stock due to major issues, etc.) And not more than 1 billion yuan to increase the company’s shares. Up to now, Taisheng Industrial Co., Ltd. has accumulated 63730728 shares of the Company by means of centralized bidding transactions, accounting for 1.39% of the total share capital of the Company, with an increased holding amount of RMB 20,464.22 million yuan.
In addition, that first-phase shareholding plan of the incentive fund has also purchase 72614742 shares of Shanying pap stock through the secondary market trading system, accounting for 1.58% of the total share capital issued by the company, The transaction amount is RMB 267,29,900 Yuan in total. As of March 19, 2019, Shanying Paper closed at a closing price of $4.05 per share, a price-to-earnings ratio (PE) of 5.79 based on earnings per share (EPS) of 2018.
Shanying Paper Co., Ltd. is an international paper group integrating recycling, papermaking, packaging, printing, trade, logistics, investment and financing. It has 9 paper-making bases at home and abroad, including 4 domestic bases located in Ma’anshan, Anhui. Zhejiang Jiaxing Haiyan, Hubei Jingzhou Public Security (construction) and Fujian Zhangzhou, overseas 5 bases located in Sweden, Norway and the United States of Kentucky. The annual output of raw paper of Shanying paper is 4.6 million tons, and the volume of packaging paper is the third in China, accounting for 9% of the market in China. At present, the Company invests in the newly-built Huazhong Paper-making Base. It is estimated that the annual production capacity will reach 1.27 million tons after the completion of Phase I and Phase II project in 2019, and the annual planned capacity of the Company will approach 6 million tons.