August 31 — Xianhe paper Co., Ltd. released its 2026 interim report. During the reporting period, the company recorded operating revenue of RMB 6.304 billion, up 5.23% year on year. Net profit attributable to shareholders of the listed company reached RMB 540 million, an increase of 13.88% year on year.
Net profit attributable to shareholders excluding non-recurring gains and losses was RMB 496 million, up 11.95%. Net cash flow from operating activities rose 26.93% year on year to RMB 417 million. During the same period, Xianhe paper produced 1.3215 million tonnes of specialty pulp and paper products, an increase of 19.28% year on year, while sales volume reached 932,000 tonnes, up 11.83%.
Xianhe paper Co., Ltd. is principally engaged in the research and development, production and sales of high-performance paper, fiber-composite new materials, pulp products and chemical raw materials. Its product portfolio spans six major categories and more than 60 product types, covering food and medical packaging, tobacco-related applications, home furnishings and decoration, business communication and publishing/printing, electrical and industrial papers, and daily consumer products. The company continues to strengthen its integrated forestry–pulp–paper–chemical industrial chain.
On the product side, the food and medical packaging materials segment recorded first-half production of 223,700 tonnes, up 31.67% year on year, with sales of 191,000 tonnes. Sales of paper-based materials for daily consumer products increased 29.52% year on year. Sales of paper-based materials for electrolytic capacitors reached 3,748.09 tonnes, generating revenue 7.35% higher than a year earlier. A specialty paper project with annual capacity of 20,000 tonnes for insulating paper, capacitor paper and related products has entered the equipment installation stage. Xianhe paper's domestic market share for lightweight publishing and printing paper exceeds 90%, while its domestic share of label release paper exceeds 30%.
Research and development remained a key growth driver. The company expensed RMB 109 million in R&D investment during the first half, representing a 46.12% year-on-year increase. Leveraging platforms including its national-level technology center and postdoctoral research workstation, Xianhe paper continued to advance the development of functional paper-based new materials, environmentally friendly processes and functional technologies. As of the end of the reporting period, the company held 59 invention patents and 141 utility model patents, and participated in the formulation of multiple national and industry standards.
In terms of capacity expansion, as of the end of June, the company's two major bases in Guangxi and Hubei province had seven pulp production lines and nine specialty paper production lines in operation. Self-produced pulp at both locations had broadly reached a quality level capable of replacing comparable imported wood pulp. The second phase of the Guangxi project is planned to add 600,000 tonnes of pulp capacity and 700,000 tonnes of specialty paper capacity, with the PM6 production line targeted for commissioning in September. Xianhe paper is also planning a specialty paper production base in Cambodia with annual capacity of 120,000 tonnes. Overseas sales revenue reached RMB 647 million in the first half, up 52.91% year on year.
Xianhe paper continued to advance its green development initiatives. As of the end of June, the company's installed photovoltaic capacity exceeded 132.72 MW, with annual power generation surpassing 90 million kWh. The company is also continuing to develop user-side energy storage projects to further optimize its energy structure.
In risk management, the company primarily monitors risks related to the macroeconomic environment, raw material prices, foreign exchange rates, market competition and project implementation. To address fluctuations in raw material prices, Xianhe paper will continue to deepen its integrated forestry–pulp–paper–chemical strategy, strengthen analysis and forecasting of raw material markets, and optimize inventory and procurement planning. In response to market competition, the company will leverage its diversified product portfolio and full-industry-chain advantages.
Overall, Xianhe paper Co., Ltd. maintained growth in revenue, profit, and specialty pulp and paper production and sales in the first half of 2026. At the same time, the company continued to advance R&D investment, capacity expansion and overseas development, further demonstrating the advantages of its integrated forestry–pulp–paper–chemical industrial chain.
