[Liwen Group] Liwen Paper made 47.8% more profit last year; final dividend increased to 9.3 cents

Livent Paper Manufacturing (02314)
Announces that last year’s revenue was HKD 26.642 billion, up 2.5% year-on-year; net profit was HKD 1.941 billion, up 47.8% year-on-year; earnings per share were HKD 0.452, with a final dividend of HKD 0.093 per share, an increase of 106.7% year-on-year; total dividends for the year were HKD 0.159 per share, up 48.6% year-on-year.

The same group’s Lihua Cultural and Technical increased profit by 15.8% last year, with a final dividend of 14 cents. See [Next Page].

Pulp prices show a pattern of falling first and then rising.

Livent Paper states that last year, pulp prices experienced a trend of falling initially and then rising, with fluctuations. In the first half of the year, global economic growth expectations weakened, and new capacity was released, putting downward pressure on pulp prices. From mid-year to the second half, domestic policies against “internal competition,” along with news of reduced or shifted production from some overseas pulp mills, tightened supply. Paper companies eased cost pressures through price increases. Meanwhile, policies promoting consumption, such as “replacing old with new,” were implemented more deeply domestically, effectively boosting demand for packaging and consumer paper, supporting overall paper prices.

Optimizing Internal Pulp Capacity and External Procurement

Livent Paper states that the company benefits from integrated vertical operations in pulp and paper, effectively alleviating cost pressures caused by significant fluctuations in raw material prices through internal capacity adjustments and external procurement. At the same time, the group continues to optimize the layout of domestic production bases and energy structure, further reducing overall production costs. During the year, the group actively promoted technological upgrades and efficiency adjustments on multiple production lines, improving overall efficiency.

Livent Paper mentions that, in the face of geopolitical and trade policy uncertainties, overseas production bases in Vietnam and Malaysia have played an important role. Expanding export markets will be a strategic focus in the future.

“Boosting Consumption” Expected to Benefit Packaging Paper Business

Livent Paper anticipates that the government’s efforts to control plastic pollution will only intensify, creating strong demand for green packaging solutions. The continued development of e-commerce logistics and policies encouraging “replacing old with new” consumer goods will directly drive growth in high-quality packaging paper. By 2026, China will prioritize “boosting consumption” as a key economic strategy, which is expected to benefit the packaging paper industry. In terms of tissue paper, China still has significant growth potential in per capita paper usage compared to developed markets.

Source: Announcement