STOCKS | Dashengda Shares Fall 9.8% as Company Comments on Rising Corrugated Paper Costs

Dashengda shares fell again, closing at 15.18 yuan per share, down 9.8%. According to Jin10, some market participants said corrugated paper, a key raw material for the company, has seen sustained price increases. They added that downstream customers have strong bargaining power and that long price-lock periods for orders can delay the pass-through of higher raw-material costs, squeezing profits from the company’s core business. Dashengda responded that its share price is influenced by multiple factors. The company said corrugated paper base paper is one of its raw materials, and it processes purchased base paper into packaging boxes. It said higher corrugated paper prices raise its costs and can only be passed on to downstream customers. Dashengda also said downstream demand is mainly tied to the consumer sector. It said it produces both general corrugated packaging boxes and packaging such as inner boxes for baijiu.