In the first half of 2024, the Company’s customers have resumed the production after the pandemic. There is increasing demand in major business – corrugated packaging material of the Company, the revenue increased by 1.5% compared to the first half of 2023. In the second half of 2024, dragged by the decrease in customer orders, the revenue decreased by 12% compared with the second half of 2023 and the total revenue decreased by 5.7% for the year.

Since October 2021, the Group’s upstream containerboard business has been temporarily suspended. Currently, the Group continues to coordinate with the local government for the annual inspection procedures of the licenses for the coal-fuel boilers. At the same time, the Group is coordinating with local government for the project to change its boilers from coal-fuel boilers to gas-fuel boilers pursuant to the environmental policies of the local government and it is expected to resume production after completion of the coordination. To ensure stable supply for the Group’s downstream corrugated packaging business, the Group purchases containerboard from third party suppliers. There was no external revenue from upstream business in both 2024 and 2023.

Against the backdrop of surging manufacturing costs and weakening of market demand, the business environment of the corrugated packing industry is expected to remain challenging. The Group has taken efforts to strengthen the cost control management and efficiency management. Therefore, the Group has recorded lower operating losses in 2024.