Source: State Administration of Taxation
5.5 Paper making and paper product industry
As an important part of light industry, paper making and paper product industry produced a total industrial output value of 8.16% of light industry in 2008. China's paper making and paper product industry includes pulp manufacturing, paper making and paper product manufacturing. Although the national government issued a series of encouragement and burden-reduction policies, paper making industry witnessed a sharp drop of foreign and domestic demand and encountered the worst year in 2008 since the foundation of China. The production capacity surplus was a foregone conclusion in 2008. As a capital-intensive industry, China's paper making industry had carried out technology updates all through the industry since 2002. Typically, several leading listed companies utilized capital advantage and deployed facilities of high speed, wide paper pieces and large production. There were as many as 7 enterprises of annual output over a million tons in 2006. The productivity expanded abruptly but the demand didn't follow up. The profitability of paper industry will continue to decline in 2009 and becomes stable at latest in 2010. For the short-run, the most pessimistic situations might happen in the first two quarters of 2009. The industry is expected to revive at latest in 2010.
During 2004 to 2008, the number of paper making and paper product enterprises increased from 7,743 to 8,715. The asset size increased from 414.7 billion yuan to 698.3 billion yuan. The total industrial output value and industrial sales value increased to 337.2 billion yuan and 321.8 billion yuan in 2004 to 700.6 billion yuan and 664.7 billion yuan in November 2008. The contribution margin increased from 15.4 billion yuan to 35.6 billion yuan. The number of employees increased from 130,000 to 141,000.
Figure5-25 Scale growth of paper making and paper product industry 2004-2008
Item
|
Jan.-Nov. 2008
|
2007
|
2006
|
2005
|
2004
|
Number of enterprises
|
8715
|
8376
|
7892
|
7461
|
7473
|
Average annual employees
|
14.1
|
13.8
|
13.5
|
13.0
|
13.0
|
Total asset (100 million yuan)
|
6983
|
6115
|
5326
|
4660
|
4147
|
Total industrial output value (100 million yuan)
|
7006
|
6325
|
5035
|
4161
|
3372
|
Industrial sales revenue (100 million yuan)
|
6647
|
6226
|
4952
|
4063
|
3281
|
Contribution margin (100 million yuan)
|
356
|
381
|
263
|
194
|
154
|
Source: China National Light Industry Council
The total industrial output value of pulp manufacturing stood at 9.5 billion yuan in 2004 and increased to 18.7 billion yuan in 2008. The total industrial output value of paper making stood at 211.7 billion yuan in 2004 and increased to 457.1 billion yuan in 2008. The total industrial output value of paper produce manufacturing stood at 116.0 billion yuan in 2004 and increased to 257.7 billion yuan in 2008. In this year, paper making accounted for the largest proportion of 62%, while pulp manufacturing and paper product manufacturing 38%.
Figure5-26 Total industrial output value of major sectors of paper making and paper product industry
Unit: 100 million RMB
Item
|
2008
|
2007
|
2006
|
2005
|
2004
|
Pulp manufacturing
|
187
|
173
|
153
|
128
|
95
|
Paper making
|
4571
|
3829
|
3062
|
2584
|
2117
|
Paper product manufacturing
|
2577
|
2323
|
1819
|
1449
|
1160
|
Source: China National Light Industry Council
The sales cost of paper making and paper product industry stood at 279.7 billion yuan in 2004 and increased to 580.5 billion yuan in the first 11 months of 2008. The sales cost was 521.5 billion yuan in 2007 and 423.3 billion yuan in 2006. It decreased 11.3% on a year-on-year basis in 2005 whereas increased 23.4% in the first 11 months of 2008. The management expense of paper making and paper product industry was 13.4 billion yuan in 2004, up by 25.7% on a year-on-year basis. The management expense in the first 11 months of 2008 was 19.6 billion yuan, up by 19.3% on a year-on-year basis, at the rapidest speed in the recent five years. The financial expense in 2004 was 6.7 billion yuan, up by 9.9% on a year-on-year basis. The financial expense in 2004 was 6.5 billion yuan, down by 3.3% on a year-on-year basis. The financial expense in the first 11 months of 2008 was 10.4 billion yuan, up by 10.9% on a year-on-year basis. The year-on-year increase in 2006 reached the highest speed of 40.5% in recent five years. The expense structure of this industry in 2008 made no obvious changes, only a slight increase in management expense, a small growth in financial expense, and almost the same amount in sales cost as last year.
Figure5-27 Cost and expenses of paper making and paper product industry 2004-2008
Item
|
Jan.-Nov. 2008
|
2007
|
2006
|
2005
|
2004
|
Sales costs (100million RMB)
|
5805
|
5215
|
4233
|
2480
|
2797
|
Year-on-year growth (%)
|
23.4
|
23.2
|
70.7
|
-11.3
|
35.4
|
Management expenses (100million RMB)
|
196
|
198
|
169
|
152
|
134
|
Year-on-year growth (%)
|
19.3
|
16.7
|
11.6
|
13.0
|
25.7
|
Financial expenses (100million RMB)
|
104
|
102
|
92
|
65
|
67
|
Year-on-year growth (%)
|
10.9
|
11.6
|
40.5
|
-3.3
|
9.9
|
Source: China National Light Industry Council
The asset growth ratio of paper making and paper product industry kept a steady growth during 2004 to 2008. It peaked at 25.9 % in 2007 and marked as low as 12.4% in 2005. The asset growth ratio was 15.9% in the first 11 months of 2008. The asset-liability ratio maintained a steady change, which was 62.7% in 2005 and 59.3% in the first 11 months of 2008. On the whole, the asset-liability went down in the five years. The profit growth increased remarkably. The profit growth ratio was 45.2% in 2007. It kept as high as 39.1% on a year-on-year basis in the first 11 months of 2008. During this period, the annual employee growth ratio was 2.6%, the same as in last year. It stood at 3.6% in 2006, 14.5% in 2004, and 14.3% in 2005. The profit of this industry in 2008 stayed almost the same as last year. The asset growth ratio increased while the total industrial output value growth and profit growth dropped slightly.
Figure5-28 Profit growth of paper making and paper product industry 2004-2008 Unit: %
Item
|
Jan.- Nov. 2008
|
2007
|
2006
|
2005
|
2004
|
Asset growth ratio
|
15.9
|
14.8
|
14.3
|
12.4
|
25.9
|
Asset-liability
|
59.3
|
58.8
|
60.1
|
61.6
|
62.7
|
Profit growth ratio
|
39.1
|
45.2
|
35.3
|
26.1
|
31.5
|
Growth ratio of total industrial output value
|
24.0
|
25.6
|
21.0
|
23.4
|
33.5
|
Annual employee growth ratio
|
2.6
|
2.6
|
3.6
|
-0.2
|
14.5
|
Source: China National Light Industry Council
The total output of pulp in 2004 was 1.52 million tons, up by 17.3% on a year-on-year basis. It was 2.058 million tons in 2008, down by 1.9% on a year-on-year basis. The year-on-year decline peaked in 2008 while the year-on-year increase peaked in 2005. The output of machine-made paper and paperboard was 83.909 million tons in 2008, up by 8.7% on a year-on-year basis, at the lowest speed in recent four years. The year-on-year growth exceeded 20% during 2005 to 2007. The output of newsprint paper was 2.999 million tons in 2004, up by 20.1% on a year-on-year basis, and 4.61 million tons in 2008, up by 9.5% on a year-on-year basis. The year-on-year growth grew stably higher than 10% from 2004 to 2007. The output of paper product was 1.306 million tons in 2004, up by 18.2% on a year-on-year basis. It increased to 2.23 million tons in 2006, up by 20.9% on a year-on-year basis, at the highest speed in recent five years. On the whole in 2008, pulp manufacturing had encountered a sharp drop in output and year-on-year growth. Compared with other sectors, the year-on-year growth of paper making declined slowly, still higher than 10% in 2008. The output of other products decreased to different degrees.
Figure 5-29 Major products output of paper making and paper product 2004-2008
Item
|
Pulp
|
Year-on-year increase or decrease
|
Machine-made paper and paperboard
|
Year-on-year increase or decrease
|
Newsprint paper
|
Year-on-year increase or decrease
|
Paper product
|
Year-on-year increase or decrease
|
(10,000 tons)
|
(%)
|
(10,000
tons)
|
(%)
|
(10,000 tons)
|
(%)
|
(10,000 tons)
|
(%)
|
2008
|
205.8
|
-1.9
|
8390.9
|
8.7
|
461.4
|
9.5
|
319.1
|
10.2
|
2007
|
210.1
|
16.1
|
7787.0
|
18.1
|
442.9
|
18.0
|
271.4
|
18.3
|
2006
|
252.9
|
21.7
|
6804.3
|
20.0
|
400.8
|
17.7
|
223.3
|
20.9
|
2005
|
195.5
|
25.3
|
5404.3
|
26.3
|
341.0
|
15.1
|
187.2
|
17.9
|
2004
|
151.6
|
17.3
|
-
|
-
|
299.9
|
20.1
|
130.6
|
18.2
|
Source: China National Light Industry Council
China's top 50 enterprises of paper making and paper product industry in terms of tax payment are as follows:
Figure5-30 China's top 50 enterprises of paper making and paper product industry in terms of tax payment 2007
Ranking
|
Region
|
Name of enterprise
|
Tax (10,000 yuan)
|
1
|
Shandong
|
Shandong Chenming Paper Holdings Ltd.
|
51051
|
2
|
Hainan
|
Hainan Jinhai Pulp & Paper Co., Ltd.
|
50154
|
3
|
Jiangsu
|
Gold East Paper(Jiangsu)Co., Ltd.
|
40983
|
4
|
Beijing
|
TetraPak (Beijing) Co., Ltd.
|
27974
|
5
|
Shandong
|
Yunzhou Tianzhang Paper Co. ,Ltd.
|
27227
|
6
|
Shandong
|
Shandong Huatai Paper Industry Shareholding Co., Ltd.
|
25124
|
7
|
Hebei
|
Baoding Banknote Paper Making Plant
|
23419
|
8
|
Jiangsu
|
TetraPak (Kunshan) Co., Ltd.
|
18956
|
9
|
Guangdong
|
TetraPak Huaxin(Foshan) Co., Ltd.
|
17772
|
10
|
Jiangsu
|
Nine Dragons Paper (Taicang) Co., Ltd.
|
16647
|
11
|
Guangdong
|
Dongguan Nine Dragons Paper Co., Ltd.
|
16294
|
12
|
Shandong
|
Shandong Bohui Paper Industry Co., Ltd.
|
15503
|
13
|
Shandong
|
MCC Paper Yinhe Co., Ltd.
|
14317
|
14
|
Hunan
|
Yueyang Paper Co., Ltd.
|
13559
|
15
|
Henan
|
Henan Yinge Industrial Investment Co., Ltd.
|
13456
|
16
|
Jiangsu
|
Gold Huasheng Paper (Suzhou industrial zone) Co., Ltd.
|
13393
|
17
|
Shandong
|
Qihe Paperboard Co., Ltd. of Shandong Chenming Paper Holdings Ltd
|
12605
|
18
|
Henan
|
Xinxiang Xinya Paper Industry Group
|
12431
|
19
|
Hubei
|
Wuhan Chenming Hanyang Paper Co., Ltd.
|
11684
|
20
|
Jiangxi
|
Jiangxi Chenming Paper Holdings Ltd
|
11393
|
21
|
Shandong
|
Shandong Sunpaper Group Joint Stock Co., Ltd
|
9948
|
22
|
Jiangsu
|
UPM—Kymmene (Changshu) Paper Industry Co., Ltd
|
9462
|
23
|
Hunan
|
Yuanjiang Paper Co., Ltd.
|
9384
|
24
|
Jiangsu
|
Kunshan Banknote Paper Mill
|
9251
|
25
|
Ningbo
|
Ningbo Zhonghua Paper Co.,Ltd.
|
9160
|
26
|
Jiangsu
|
Jiangsu Lee & Man Paper Manufacturing Limited.
|
8778
|
27
|
Heilongjiang
|
Mudanjiang Hengfeng Paper Co., Ltd.
|
8116
|
28
|
Fujian
|
Heng'an (Jinjiang) Women's Supplies Co., Ltd.
|
7978
|
29
|
Guangdong
|
Guangzhou Paper Co., Ltd.
|
7925
|
30
|
Zhejiang
|
Minfeng Special Paper Co., Ltd.
|
7334
|
31
|
Shandong
|
Shandong Asia Pacific SSYMB Pulp & Paper Co., Ltd.
|
7296
|
32
|
Guangdong
|
Guangdong Dingfeng Paper Co., Ltd.
|
7040
|
33
|
Guangdong
|
Dongguan Lee & Man Paper Manufacturing Limited.
|
6972
|
34
|
Hunan
|
Hunan Golden Shine Color Printings Co., Ltd.
|
6837
|
35
|
Anhui
|
Anhui Shanying Paper Industry Co., Ltd.
|
6131
|
36
|
Guangdong
|
Zhuhai S.E.Z. Hongta Renheng Paper Co., Ltd.
|
6075
|
37
|
Hubei
|
Chibi Chenming Paper Holdings Ltd
|
5992
|
38
|
Hunan
|
Yongzhou Xiangjiang Paper Co., Ltd.
|
5889
|
39
|
Shandong
|
Shandong Huajin Group Co., Ltd.
|
5887
|
40
|
Inner Mongolia
|
Nine Dragons (Xingan) Pulp & Paper (Inner Mongolia) Co., Ltd.
|
5868
|
41
|
Shandong
|
International Paper Sun Cartonboard Co. Ltd
|
5708
|
42
|
Yunnan
|
Yunnan Hongta Lanying Paper Industry Co., Ltd.
|
5693
|
43
|
Ningxia
|
MCC Meili Industry Co., Ltd.
|
5685
|
44
|
Fujian
|
NANZHI CO., LTD.,FUJIAN
|
5516
|
45
|
Fujian
|
Fujian Qingshan Paper Industry Co., Ltd.
|
5509
|
46
|
Jiangsu
|
Avery dennison China Co., Ltd.
|
5382
|
47
|
Liaoning
|
Jincheng Paper Co., Ltd.
|
5172
|
48
|
Jiangsu
|
SIG Combibloc (Suzhou) Co., Ltd.
|
4981
|
49
|
Yunnan
|
Yunan Yunjing Forestry and Paper Co., Ltd.
|
4958
|
50
|
Jiangsu
|
Gold Hong Ye Paper (Suzhou Industrial Park) Co., Ltd.
|
4894
|
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