Breaking Down Yueyang Forest & Paper Co., Ltd. Financial Health: Key Insights for Investors

Yueyang Forest & Paper Co., Ltd., a pillar of China's forest products industry since 1958, combines a robust industrial backbone-four paper and four pulp production lines with an annual paper capacity of 1,000,000 tons and pulp capacity of 600,000 tons-with a clear mission to prioritize environmental stewardship, product quality, innovation and customer service; as a State-Level Technology Center host conducting roughly 100 R&D activities a year and an approved exporter, Yueyang reinforced its green manufacturing push in 2025 with a new paper machine adding 450,000 tons of annual capacity, while its 2022 financials (approximately RMB 3.5 billion in revenue and an 8.2% net profit margin) and a reported 90% employee satisfaction rate underscore how its vision to lead in all-natural performance materials and core values of innovation, sustainable forest management, stakeholder value and community engagement are being translated into measurable scale, technological depth and market competitiveness-read on to see how these concrete commitments shape strategy, operations and long-term growth.

Yueyang Forest & Paper Co., Ltd. (600963.SS) - Intro

• Deliver sustainable, high-quality paper and packaging solutions that meet domestic and international customer needs.
• Advance green manufacturing through large-scale, low-emission production upgrades (e.g., 2025 paper machine: 450,000 t/yr).
• Create long-term value for stakeholders while preserving local ecosystems and fostering industrial innovation.

• To be a leading global supplier of fine, packaging, and industrial paper recognized for technological excellence and environmental stewardship.
• Achieve integrated capacity and efficiency milestones - targeting optimized utilization across 1,000,000 t paper and 600,000 t pulp platforms - while expanding export footprint.
• Transform into a green manufacturing base through investments, R&D, and adoption of circular-economy practices.

• Innovation: Sustaining ~100 annual R&D activities via the State-Level Technology Center to improve product performance, process efficiency, and sustainability.
• Quality: Meeting rigorous domestic and international standards across fine paper, packaging, and industrial grades - supported by four paper and four pulp lines with combined million-ton capacity.
• Sustainability: Prioritizing low-carbon, resource-efficient upgrades (2025 capacity expansion emphasizes green manufacturing) and responsible sourcing.
• Customer Focus: Strengthening export competitiveness as an approved exporter and tailoring solutions for global buyers.
• Integrity & Compliance: Operating under China Paper Corporation and China Chengtong governance, adhering to regulatory and customs requirements.

• Capacity utilization: Maintain ≥85% utilization on combined paper capacity (1,000,000 t) and integrate the 450,000 t/yr machine efficiently.
• R&D output: Sustain ~100 annual tech projects with targets for patent filings and process energy-intensity reductions (%) measured year-over-year.
• Environmental metrics: Track reductions in specific emissions (kg CO2e/ton), water reuse rates, and waste-to-landfill tonnage after 2025 upgrades.
• Export growth: Increase overseas sales share via customs-approved exporter status and targeted market expansion.

Yueyang Forest & Paper Co., Ltd. (600963.SS) Overview

• Environmental responsibility: sustainable forest management aligned with international standards and certifications.
• Quality and innovation: ongoing process improvements and technology upgrades to enhance pulp and paper output.
• Customer focus: reliable supply chain management and responsive sales/service to meet client needs.
• Community engagement: local employment initiatives, social programs and ecosystem protection efforts.

• Strategic focus: leverage sustainable forestry to secure raw material supply and reduce volatility in input costs.
• Operational priorities: invest in process modernization and quality control to maintain margins and meet regulatory standards.
• Stakeholder commitments: balance shareholder returns with environmental and social responsibilities through transparent reporting.

Yueyang Forest & Paper Co., Ltd. (600963.SS) - Mission Statement

• Deliver high-performance, all-natural fiber products that meet evolving application needs across packaging, hygiene, and industrial uses.
• Continuously improve product quality through targeted R&D, process optimization, and equipment modernization.
• Maintain reliable supply chains and responsive customer service to ensure on-time delivery and consistent product availability.
• Embed sustainability across operations: responsible forestry sourcing, waste reduction, and energy efficiency.
• Engage with local communities via employment, environmental stewardship, and social responsibility programs.

• R&D investment in functional fibers, formulation science, and process automation to expand product applications.
• Upgrading manufacturing lines to improve yield, reduce energy intensity, and lower emissions.
• Strengthening customer partnerships through technical service teams and customized product development.
• Expanding market reach internationally while deepening presence in domestic specialty segments.

• Quality - uncompromising standards across raw materials, process control, and finished goods.
• Innovation - R&D-driven development of new all-natural performance materials and manufacturing technologies.
• Integrity - transparent governance, compliance with environmental and labor regulations, and ethical sourcing.
• Responsiveness - agile service and supply reliability to meet customer timelines and specifications.
• Community - proactive engagement in local economic development and environmental protection.

• Quality control programs and process upgrades aimed at reducing defect rates and improving yield (targeted year‑on‑year improvement in unit cost).
• R&D projects to introduce higher-margin specialty fibers and broaden application portfolios for medical, hygiene, and industrial sectors.
• Sustainability projects to increase use of certified fiber sources, reduce water and energy consumption per ton of output, and manage effluent to regulatory standards.

Yueyang Forest & Paper Co., Ltd. (600963.SS) - Vision Statement

• Innovation: continuous investment in R&D, process optimization, and product diversification to meet evolving customer needs and reduce environmental footprint.
• Growth: disciplined capacity expansion and market penetration focused on higher-margin specialty papers and pulp products.
• Re-innovation: iterative upgrades to facilities, digitalization of operations, and agile product development cycles to stay ahead of industry change.

• Respect for private forest landowners: partnering with local owners to promote sustainable management, fair compensation and secure raw material supply chains.
• Public education and advocacy: proactive outreach to the media, government officials, and communities to communicate the economic and environmental role of the forest products industry.
• Member and stakeholder value: aligning corporate strategy with shareholder returns, supplier stability, customer satisfaction and community welfare.

• Quality-focused production: ongoing quality assurance programs to maintain product specifications and customer trust.
• Environmentally conscious operations: adoption of cleaner energy sources, wastewater and emissions controls, and increased recycled-fiber use where feasible.
• Strategic competitiveness: benchmarking performance, cost control, and selective capital allocation to high-return projects.