SHANDONG, CHINA —Chenming Paper Holdings Limited disclosed its 2026 interim report on the evening of August 28. During the reporting period, the company recorded operating revenue of RMB 6.865 billion, representing a year-on-year increase of 225.90%.
Net profit attributable to shareholders of the listed company was a loss of RMB 786 million, but the loss narrowed significantly from RMB 3.858 billion in the same period last year, signaling a clear improvement in operating performance.
In March this year, Chenming’s five major production bases fully resumed production and operations. The bases simultaneously completed major equipment overhauls as well as process and technological upgrades, allowing the core advantages of its integrated pulp-and-paper operations to be fully restored. Production and sales volumes increased significantly. The company continued to expand diversified sales channels and maintain a dynamic balance between production and sales, driving both year-on-year and sequential growth in operating revenue during the reporting period. Meanwhile, the company stepped up development of overseas markets, with overseas revenue reaching RMB 1.216 billion during the reporting period, representing a substantial recovery year on year.
The company actively negotiated with financial institutions to advance debt-extension and interest-rate reduction measures. According to the report, Chenming’s financial expenses totaled RMB 561 million in the first half of 2026, down 30.31% year on year. Financial expenses in the second quarter also decreased 26.41% from the first quarter, highlighting the accelerating realization of cost-reduction and efficiency-improvement results and effectively easing the pressure of interest expenses on operating performance.
During the reporting period, the company also completed the disposal of equity interests in and creditor’s rights relating to Shandong Yujing Grand Hotel Co., Ltd. In addition, benefiting from the overall exit from its financial leasing business, the company recorded a year-on-year decrease in provisions for bad debts on receivables during the reporting period, further releasing asset-related risks. Through the disposal of inefficient non-core assets, the company has further concentrated resources on its core papermaking business, with asset quality continuing to improve.
Industry analysts believe that the paper industry remains at the bottom of its current cycle. Although Chenming has not yet returned to profitability, multiple positive factors—including the full release of production capacity, implementation of refined cost controls, reduced debt burden, and disposal of non-core assets—are converging. The company’s narrowing losses therefore have the potential to be sustainable.
Chenming said it will focus on cost reduction and efficiency improvement as well as product innovation, advance refined management, further tap the potential for cost control, and increase investment in research and development. The company will accelerate R&D of higher-value-added products, including industrial paper and food packaging paper. The gradual formation of a new product portfolio is expected to provide incremental growth drivers for subsequent earnings recovery.
Looking ahead to the second half of the year, as the advantages of released production capacity continue, new products gradually ramp up in volume, and asset disposal efforts move forward, Chenming’s scope for earnings recovery is expected to expand further, with potential for a medium- to long-term turnaround in operations.
