In a recent move signaling its commitment to transformation, Dashengda (603687.SH), a prominent paper bag manufacturer, is poised to venture into new territories by delving into the pulp molding sector and high-quality packaging. According to Hu Xin, the secretary of the company's board of directors, the strategic shift aims not only to deepen the core business of paper packaging but also to explore related fields for increased gross profit. Leveraging its expertise in smart factory construction, Dashengda is set to enter the realm of industrial interconnection.
Hu Xin, in an interview with reporters from the Financial Associated Press, disclosed that the first phase of Dashengda's pulp molding project is slated to commence trial production within the current year. The resultant products will primarily target European and American markets, with an anticipated gross profit margin of around 20%-30%. While specifics regarding the premium packaging venture are yet to be finalized, Hu Xin hinted at the company's future plans to enter the wine packaging sector through strategic acquisitions. Additionally, Dashengda is actively exploring opportunities in the new tobacco Heat-Not-Burn (HNB) segment, contemplating acquisitions to fortify its strategic position.
Embracing the digital economy is a key aspect of Dashengda's approach, serving as a catalyst for the upgrade and development of traditional manufacturing. The integration of "intelligence" forms the cornerstone of the company's trajectory towards high-quality development. A recent on-site investigation of Dashengda's smart factory in Xiaoshan, Hangzhou, conducted by a reporter from China Federation of Finance and Economics on January 22, highlighted the company's commitment to leveraging its smart factory experience. Building on the success of their self-built smart factory projects, Dashengda plans to further advance into the realm of the industrial Internet, collaborating with professional technical teams to export solutions and propel its digital initiatives forward.
