CHENG YANG PAPER MILL CO., LTD: A Paper Industry Giant with Resurgent Profitability Despite Revenue Dip

CHENG YANG PAPER MILL CO., LTD (CÔNG TY TNHH XƯỞNG GIẤY CHÁNH DƯƠNG), a veteran in Vietnam’s industrial landscape, continues to command attention with its scale, longevity, and recent financial rebound. Established in 2003 and located in the My Phuoc Industrial Park in Binh Duong Province, the company has grown into one of the largest foreign-invested enterprises in Vietnam’s paper sector. With a workforce of over 530 employees, CHENG YANG PAPER MILL CO., LTD focuses on manufacturing carton boxes, civil and industrial paper, and other paperboard articles, catering to a wide range of packaging and consumer needs.

Legally structured as a limited liability company with 100% foreign direct investment (FDI), CHENG YANG is backed by international shareholders from the Cayman Islands and Taiwan. The largest stake—66.82%—is held by Best Shine International Development (Cayman V) Ltd, while another 27.72% belongs to its sister company, Cayman VII. Taiwan-based Lee Yang Paper Co., Ltd, owns the remaining 5.46%. This ownership model provides CHENG YANG with robust access to foreign capital and integration into global supply chains, particularly in East Asia.

The company’s 2023 financials present a compelling story. Despite a 16.62% drop in revenue to USD 213.2 million, CHENG YANG PAPER MILL CO., LTD achieved a dramatic 347.77% increase in profit, reaching USD 5.88 million, compared to just over USD 1.3 million in 2022. The turnaround is significant when viewed against the backdrop of 2022’s steep profit collapse from USD 34.7 million in 2021. While revenue has yet to recover to prior levels, this jump in profitability suggests a renewed emphasis on margin protection, cost optimization, or favorable input pricing.

One of the most striking figures from a financial risk standpoint is the consistency and strength of owner’s equity, which rose to USD 163.68 million in 2023—a 3.72% increase from the previous year. Total assets also rebounded by nearly 6% to USD 295.33 million, after dipping the previous year. This recovery in balance sheet health indicates that the company is continuing to make strategic reinvestments and maintain its long-term operational integrity, despite a tougher market for paper products.

Working capital, however, deserves closer scrutiny. Standing at USD 12.88 million—a drop of over 51% year-on-year—it reflects tighter liquidity conditions, which could pose short-term financial pressure if not managed prudently. That said, with a net worth of over USD 162 million, CHENG YANG retains a strong financial cushion that most peers in the sector would envy.

Led by General Director Mr. Li Yuming and Finance Director Mr. Wu Liang Ming, both of Chinese nationality, the leadership structure combines global perspective with deep-rooted industry experience. This team has clearly steered the company through volatile cycles and seems committed to recalibrating operations for long-term profitability.

In terms of registered business activities, CHENG YANG is licensed for paper product manufacturing as well as warehousing and storage services. These verticals support its core business and add operational flexibility, especially important when navigating fluctuations in both demand and raw material costs.

For manufacturers, exporters, and partners in Vietnam’s industrial supply chain, CHENG YANG PAPER MILL CO., LTD represents a resilient and strategically positioned player. While the paper industry is exposed to environmental regulation, global pulp price volatility, and shifting demand from the e-commerce and logistics sectors, CHENG YANG’s financial resurgence makes it a credible and reliable name in the business.

Before entering any financial or trade engagement with CHENG YANG PAPER MILL CO., LTD, stakeholders are encouraged to conduct proper due diligence. VANGUARD BUSINESS INFORMATION LLC (VBI) offers specialized financial health assessments, credit checks, and risk analysis to ensure your business decisions are grounded in verified data.