Gelonghui, September 11, 丨 Jingxing Paper (002067.SZ) announced that the company held the 9th meeting of the 8th board of directors on September 11, 2024 to review and pass the “Proposal on Adding a Natural Color Recycled Pulp Preparation Line for the Household Paper Division”, and agreed that the company's household paper division would add a 200T/D environmentally friendly recycled pulp preparation production line.

The company's deinking workshop currently has a 200T/D ink removal paste production line. The product design plan is to use office waste paper and book paper as the main raw materials to replace bleached wood pulp to produce hand wipes and toilet paper. After the first phase of the recycled pulp project, Jingxing Holdings (Malaysia) Co., Ltd. (hereinafter referred to as “Jingxing Holdings (Malaysia) Company”), a wholly-owned subsidiary of the company, was put into operation, the company developed a new product and used the recycled pulp of Jingxing Holdings (Malaysia) as a raw material to produce household paper. Due to the increase in production varieties and different raw material strengths, the ink removal production line needs to switch between different raw materials for slurry production, which affects production efficiency. At the same time, due to limited drum crushing capacity, when using Jingxing Holdings (Ma)'s recycled pulp as a raw material, the production capacity utilization rate of paper is biased and cannot meet the needs of paper machines, leading to an increase in the consumption of various types of materials.

Therefore, after carrying out a feasibility analysis by the internal technical department, the company proposed adding a 200T/D environmentally friendly recycled pulp preparation production line. The production line can separately process various types of raw materials such as recycled pulp, cup paper, household paper, high humidity and strength loss paper from Jingxing Holdings (Ma), and use it to regenerate household paper after making pulp. After completion, the production capacity of the deinking workshop was increased from the current 200T/D to 400T/D, which can meet the production and preparation needs of two different types of slurry at the same time, increase the diversity of the company's products and reduce the production costs of some products, thereby improving the competitive advantage of the product market, increasing the profitability of the machine, and complying with the requirements of the country's dual carbon policy and enhancing the company's sustainable development capacity.

The estimated construction period for this technical reform is 8 months, with an estimated investment cost of 30 million yuan, of which equipment is 6.45 million yuan, material costs are 15.5 million yuan, civil construction costs are 4.05 million yuan, installation and design costs are 3.5 million yuan, and other expenses are 0.5 million yuan. After the technical reform is completed, the proportion of products using pulp as raw material is 20%, and the proportion of products using recycled pulp from Jingxing Holdings (Ma) Company is estimated to be 80%, which can generate an annual benefit of 2.34 million yuan. The recycling of tail pulp can be used to produce yarn tube paper, corrugated paper, and box board, which can save 2.7 million yuan in raw material costs every year. Together, the two can generate an annual benefit of 5.04 million yuan. The project's static payback period is 5.95 years.