Anhui Linping Circular Development Approved for 12 Billion Yuan IPO

An environmental and resource-efficient paper manufacturer, Anhui Linping Circular Development Co., Ltd. (Linping Development), has received approval from the Shanghai Stock Exchange to begin the initial public offering (IPO) process. The company, which specializes in the research, development, production, and sale of packaging corrugated paper and cardboard products, is seeking to raise 12 billion yuan through its IPO. The underwriter for the IPO is CITIC Securities.

Linping Development has established itself as a high-tech enterprise with strong independent research and development capabilities. Over the years, the company has evolved into a comprehensive resource utilization enterprise, integrating waste paper utilization, cogeneration, and green papermaking. The company places a strong emphasis on environmental protection and energy conservation, implementing various technologies such as waste paper utilization, wastewater treatment, white water and gray water recycling, biogas combustion power generation, sludge reuse, cogeneration, and green manufacturing to achieve resource recycling and sustainable development.

The Chinese papermaking industry has seen significant changes in recent years, with the government implementing and refining relevant laws, regulations, and industry policies. This has led to higher entry barriers and increased requirements for production processes and technological levels. As a result, many small and medium-sized papermaking enterprises with low production capacity and outdated technology have been merged or phased out, driving the industry towards consolidation and scale. This trend has led to an increase in industry concentration.

Linping Development currently has a production capacity of 120,000 tons of paper. In 2024, the company's paper production reached 101,970 tons, placing it among the top 30 papermaking enterprises in China by production volume. The company's production volume is well above the industry average. According to the China Paper Association, Linping Development's paper production accounted for 35.65% of Anhui Province's total paper and cardboard production and 0.75% of the national total, making it one of the leading papermaking enterprises in Anhui Province.

With the completion and operation of the planned 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. The funds raised through the IPO will be used for the following projects:

The company's financial performance has been stable in recent years. In 2022, 2023, and 2024, Linping Development reported revenues of approximately 28.79 billion yuan, 28 billion yuan, and 24.85 billion yuan, respectively. During the same periods, the company achieved net profits of approximately 1.54 billion yuan, 2.12 billion yuan, and 1.53 billion yuan, respectively.