Date
28 May 2017
Lee Man-bun says oversupply in the industry eased after a government crackdown on illegal capacity. Photo: HKEJ
Lee Man-bun says oversupply in the industry eased after a government crackdown on illegal capacity. Photo: HKEJ

Lee & Man Paper sees growth driven by e-commerce

Lee & Man Paper Manufacturing Ltd. (02314.HK) is expecting e-commerce to drive demand for cardboard liners.

Chief executive Lee Man-bun said the rapid growth of e-commerce means more and more sellers are shipping their products in paper boxes.

The company said net profit grew 22.7 percent to HK$1.12 billion (US$144.5 million) in the six months to June.

It sold 2.68 million tons of kraftliner products and expects full-year sales of 5.23 million tons, rising to 5.63 million tons in 2016, according to the Hong Kong Economic Journal.

Lee said oversupply in the industry has eased after a crackdown by the Guangdong government on illegal operations involving 2.3 million tons of annual production capacity.

Kraftliner profit rose 7 percent to HK$411 per ton from a year earlier despite a 4.6 percent drop in selling prices to HK$3,182.

Meanwhile, its toilet paper business contributed HK$15 million of profit, or HK$1,300 per ton.

[Chinese version中文版]

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