Linping Development Approved for 12 Billion Yuan IPO on Shanghai Exchange

Linping Development, a leading manufacturer of packaging paper products, has received approval for its initial public offering (IPO) on the Shanghai Stock Exchange. The company, backed by CITIC Securities as its underwriter, aims to raise 12 billion yuan through this offering. Linping Development specializes in the research, development, production, and sale of packaging corrugated paper and cardboard products, and has evolved into a comprehensive resource utilization enterprise that integrates waste paper utilization, cogeneration, and green papermaking.

The company's primary products include corrugated paper and cardboard, which are widely used in the logistics, industrial goods, and consumer goods packaging sectors. Linping Development's products are sold to downstream manufacturers who produce corrugated boxes, which are then used in various industries. The company's annual production capacity currently stands at 120,000 tons, with a production output of 101.97 million tons in 2024. This places Linping Development among the top 30 paper producers in China, underscoring its significant market presence.

Linping Development's IPO comes at a time when the paper industry in China is characterized by a large number of enterprises, low market concentration, and intense competition. However, the company's high production capacity and focus on quality and service have enabled it to establish a strong market position. The company's products are sold directly to customers, with a focus on direct sales and a strong emphasis on customer service. Linping Development has built stable partnerships with numerous well-known enterprises, including Xiamen Hexing Packaging Printing, Xiamen Jianfa, and Xiamen Guotao Group.

With the completion of its investment projects, Linping Development's total paper production capacity is expected to increase from 120,000 tons per year to 240,000 tons per year. This expansion will further enhance the company's market position and competitive edge in the paper industry. The IPO proceeds will be used to fund the expansion of production facilities, which will enable Linping Development to meet the growing demand for paper products more effectively. The company's strong financial performance, with annual revenues of approximately 28.79 billion yuan, 28 billion yuan, and 24.85 billion yuan for the years 2022, 2023, and 2024 respectively, and net profits of approximately 1.54 billion yuan, 2.12 billion yuan, and 1.53 billion yuan for the same period, underscores its robust financial health and growth potential.