Future Development Strategy

In response to the nation’s call for a significant shift in the economic growth model and accelerated restructuring of the economy, Liuyuan, based on the company’s actual situation, has conducted a comprehensive assessment and analysis of the paper-making market conditions, project resources, and environmental factors. Seizing the growing market opportunities both in China and globally for paper and cardboard, our company plans to invest 120 million yuan to establish a “150,000-ton per year gray board paper project” on the site of a previously closed coking coal mine located south of the factory premises. This project aims to optimize industrial layout while sharing resources, enabling us to compete in the market with low energy consumption and eco-friendly practices, thus achieving sustainable development in the competitive marketplace. The project is aligned with industrial policies and industry planning and has already entered the approval stage. Upon completion and commissioning, the project is expected to generate annual sales revenue of 630 million yuan and an annual profit margin of over 50 million yuan under normal operating conditions. At that time, the company will have reached a production capacity of 330,000 tons per year.