Shandong Chenming Paper Holdings (Chenming Paper, 01812) expects to report a consolidated net loss of RMB0.70–0.80 billion for the six months ended 30 June 2026, a significant improvement from the RMB3.86 billion deficit recorded in the same period of 2025.

Adjusted for extraordinary items, net loss is forecast at RMB1.03–1.13 billion, narrowing from the prior-year loss of RMB3.65 billion. Basic loss per share is estimated at RMB0.24–0.27, versus RMB1.31 a year earlier.

Management attributes the year-on-year turnaround to:

• Cost and efficiency gains: streamlined organisational structure, logistics optimisation, process improvements and expanded sales channels drove lower operating costs and improved supply–demand balance. • Production recovery: all production bases resumed full operations, lifting output and sales volumes and curbing shutdown-related losses. • Lower financing burden: negotiations with creditors reduced interest expenses. • Reduced impairments: the full disposal of financial leasing assets in 4Q25 cut credit and asset impairment losses in the current period.

The company has engaged its external auditor regarding the forecast, but the figures remain unaudited and subject to adjustment pending the release of the 2026 interim report.

Looking ahead, Chenming Paper will continue implementing its “Twelfth Five-Year Plan”, centred on cost-efficiency, product-mix optimisation, compliance risk control, and divestment of non-core assets to support sustainable growth.