Announcement time of this financial report: 2023-10-25 16:20:02

Rongsheng Environmental Protection (stock code: 603165) is an enterprise operating in China's paper industry, mainly engaged in the procurement of waste paper, wood pulp and other raw materials, and sells base paper products to printing, packaging and other downstream enterprises. Although under the pressure of the manufacturing industry, Rongsheng Environmental Protection is facing the characteristics of low market concentration, technology-intensive, labor-intensive, capital-intensive and other industrial characteristics, but with the sustained and rapid development of China's economy, China's paper industry is also gradually transitioning to an intensive development model, and Rongsheng Environmental Protection is expected to play an important role in this process.

In terms of assets and liabilities, Rongsheng Environmental Protection's total assets reached 3.532 billion yuan in the third quarter of 2023, an increase of 32.86% compared with 2.659 billion yuan at the end of the previous year, mainly due to the increase in convertible bond issuance and short-term borrowing. The total liabilities were 1.367 billion yuan, more than double the 668 million yuan at the end of last year. The net asset was 2.165 billion yuan, up from 1.99 billion yuan at the end of last year. The asset-liability ratio was 38.72%, up from 25.14% at the end of the previous year.

In terms of profit, Rongsheng Environmental Protection's operating income in the third quarter of 2023 was 1.679 billion yuan, down from 1.933 billion yuan in the same period last year. Operating profit was 217 million yuan, up from 136 million yuan in the same period last year. The net profit was 222 million yuan, up 64.39% from 135 million yuan in the same period last year. This is mainly due to the decline in the cost of raw materials, resulting in an increase in the gross profit margin of the company's products. The gross profit margin was 14.22%, up from 6.98% in the same period last year. The net interest rate was 13.23%, up from 6.99% in the same period last year.

In terms of cash flow, the net cash flow generated by Rongsheng Environmental Protection's operating activities in the third quarter of 2023 was 219 million yuan, down slightly from 229 million yuan in the same period last year. Cash inflow from operating activities totaled 1.802 billion yuan, down from 2.175 billion yuan in the same period last year. Cash outflow from operating activities totaled 1.583 billion yuan, down from 1.946 billion yuan in the same period last year.

To sum up, Rongsheng Environmental Protection's overall operating condition in the third quarter of 2023 is stable, its profitability has been improved, and its asset scale has also increased significantly. Although the operating income has declined, the company's gross profit margin and net profit margin have increased due to the decline in raw material costs, and the net profit has also increased significantly. In addition, the company's asset-liability ratio has increased, but the overall level is still within a reasonable range.

For investors, Rongsheng Environmental Protection, as a major enterprise in the paper industry, the steady growth of its performance and the expansion of its assets show the company's good operating conditions and market competitiveness. At the same time, with the transition of China's paper industry to an intensive development model, Rongsheng Environmental Protection is expected to further enhance its market position and profitability in the future. Therefore, investors can consider Rongsheng Environmental Protection as a long-term investment object. But at the same time, we also need to pay attention to the company's debt and cash flow, in order to adjust the investment strategy in a timely manner.

This article only represents the judgment made by the analyst himself or the analyst on the basis of AI analysis, and can not be used as any investment index, nor does it constitute any investment advice. The original intention of this paper is to help investors analyze and judge the capital market data in the most intuitive and fast way and from the most professional perspective.