Lee and Man Paper Manufacturing: & Man Paper announces its 2021 annual results

[For Immediate Release]

Lee & Man Paper announces its 2021 annual results

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Actively strengthen the establishment and create more growth opportunities

(Hong Kong, March 7, 2022) – Lee & Man Paper Manufacturing Limited (“Lee & Man Paper” or the “Group”) (HKEX: 2314), one of China’s largest containerboard manufacturers, today announced its annual results for the fiscal year ended December 31, 2021 During the year, the Group recorded total revenue of HK$32.51 billion (2020: HK$25.87 billion), an increase of 25.7% compared to the previous year. Full year profit for the year decreased by 11.0% to HK$3.25 billion (2020: HK$3.65 billion) due to higher costs and net profit per ton was 513 HK dollars (2020: HK$587). Earnings per share were 71.87 HK cents (2020: 80.99 HK cents).

The Board of Directors has declared the payment of an annual dividend of 11 HK cents per share for the year ended 31 December 2021 (2020: 18 HK cents per share). With the interim dividend of 15 HK cents per share already paid (2020: 12 HK cents per share), total dividends for the year amounted to 26 HK cents per share (2020: 30 HK cents per share ), representing a payout ratio of approximately 36% (2020: 37%).

Dr. Raymond Lee, President of Lee & Man Papersaid: “In 2021, the situation of the novel coronavirus pandemic remained unstable and a new variant of the virus brought new uncertainties to the global economic recovery. The continued political tensions between the US and Chinese governments, rising prices energy and mounting inflationary pressures all meant that companies continued to face challenges that could impact their businesses and operations.

“In 2021, the “waste ban” was fully implemented in mainland China. As a result, waste paper was tightened and pulp prices continued to rise. In addition, shipping capacity Restricted international caused a bottleneck in the supply chain and transportation energy consumption (《完善能源消費強度和總量雙控制度方案》), various local governments imposed restrictions on electricity supply and production activity, resulting in soaring energy prices which, in turn, led to a sharp increase in paper manufacturing costs. Faced with changing market supply and demand and government policies, the Group continued to consolidate its upstream resources and develop a vertical business model covering pulp manufacturing and waste paper recycling in order to ‘integrate the industrial chain and ensure the supply of raw materials. At the same time, the Group continued to expand its size, control its costs and increase its production capacity, creating more growth opportunities for its results.”

Packaging paper remains the Group’s core business. In the wake of the pandemic, online shopping has become more common, driving up the demand for wrapping paper. Additionally, the plastic restriction ordinance implemented by the Chinese government has resulted in a trend of using paper packaging instead of plastic, which in turn has boosted the demand for wrapping paper. The Group is actively developing its recycled pulp activity as well as the coverage and diversification of its production capacities with the aim of sustainably improving the Group’s profitability. The Malaysian plant’s second paper machine went into production in April 2021 with an annual capacity of 350,000 tons. The group

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Lee & Man Paper announces its 2021 annual results March 7, 2022

also finalized the acquisition of a business in Cambodia and the project is currently in the early stages of coordinating land acquisition and plant construction. In addition, the Group plans to add semi-chemical pulp production lines at its mills in Jiangxi province and Chongqing, respectively, to increase the supply of virgin fiber pulp for packaging paper. .

With respect to the tissue paper sector, the market demand for consumer tissue is increasing due to economic growth, increasing disposable income per capita and the pandemic, which has heightened public awareness of the hygiene. The Group considers the business of consumer fabrics as its major axis and has endeavored to improve its quality and increase its production scale. The Group produces unbleached natural bamboo fabric to meet health and environmental protection needs as well as consumer requirements. The Group will increase its capacity based on market and customer demand, and add new consumer tissue paper production lines at its Jiangxi plant.


As of December 31, 2021, the Group maintained a strong financial position with bank balances and cash of HK$1,909 million (2020: HK$1,185 million). The Group’s net debt ratio fell from 0.33 as of December 31, 2020 to 0.36 as of December 31, 2021.

Mr. Edmond Lee, Managing Director of Lee & Man Paperconcluded: “As we enter 2022, the Group will continue to optimize its industrial chain in order to diversify its paper and pulp businesses, further improve its operational stability and strengthen its profit base. The Group supported the “Belt and Road” initiative by targeting the Southeast Asian market, expanding its presence in international markets and making good use of local resources to optimize its operational efficiency. It has already added new production capacities and established production plants in countries such as Vietnam, Malaysia and Indonesia, and will continue to seek business opportunities in “Belt and Lane” countries and cities. Road” in the future. Leveraging its leading position in the papermaking industry and its strong development strengths, the Group intends to further improve its profitability and create greater benefits for shareholders, employees and society.”

– To finish –

About Lee & Man Paper Manufacturing Limited

Lee & Man Paper Manufacturing Limited is one of the leading paper manufacturers in China and was included in the MSCI China Index in 2017. The Group specializes in the production of a range of linerboard, corrugated board and coated duplex paperboard used to produce paperboard boxes. for packaging purposes. The Company has also entered the tissue paper market in recent years. Currently, the Group has five paper production plants in China, located in Huangyong in Dongguan, Hongmei in Guangdong, Changshu in Jiangsu, Yongchuan in Chongqing and Jiujiang in Jiangxi; And two production plants in Southeast Asia, one in Hau Giang, Vietnam and one in Selangor, Malaysia. The Group’s total annual production capacity is currently 6.88 million tons of corrugated cardboard, 180,000 tons of paper pulp and 995,000 tons of tissue paper.

For media inquiries:

Strategic Financial Relations Limited

Mrs. Cindy Lung

Tel: (852)

2864 4867

E-mail: [email protected]

Ms. Phoebe Leung

Tel: (852)

2114 4172

E-mail: [email protected]

Mrs. Aggie Fang

Tel: (852)

2114 4987

E-mail: [email protected]


Lee & Man Paper Manufacturing Ltd. published this content on March 07, 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unmodified, on March 07, 2022 09:08:09 UTC.

Public now 2022


Sales 2021 31,891 million
4,081 million
4,081 million
Net income 2021 3,996 million
Net debt 2021 10,709 million
1,370 million
1,370 million
PER 2021 ratio 5.49x
2021 performance 6.37%
Capitalization 22,032 million
EV / Sales 2021 1.03x
EV / Sales 2022 0.95x
# of employees 9,800
Floating 27.6%


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Average Spread / Target 49.8%

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