Shandong Chenming Paper Holdings Limited (“Chenming Paper”) reported a further deterioration in its balance sheet, disclosing RMB5.12 billion in cumulative overdue debt as of 30 March 2026. The figure rose RMB1.64 billion versus 31 March 2025 and now equals 181.86% of the company’s latest audited net assets. The past-due borrowings comprise working-capital and project loans, supply-chain and equipment financing, plus matured commercial paper under litigation; creditors span banks, leasing firms, factoring companies and suppliers.

Newly accumulated litigation also accelerated. Since the 29 August 2025 cut-off, 239 fresh cases have been filed involving RMB2.26 billion—250.07% of audited net assets. Disputes with financial institutions dominate, accounting for roughly RMB1.69 billion across five cases, while supplier and works-contract conflicts cover another RMB0.36 billion across 231 cases.

Management stated that agreements on extensions, rate reductions and restructurings have been reached with most financial creditors, and negotiations continue with the remainder. On the legal front, selected cases have settled; the company is pursuing negotiations and defensive actions for the rest and will record provisions in accordance with accounting standards.

All production bases are reportedly operating. Chenming Paper plans to intensify cost-cutting, enhance product mix and bolster cash flow in an effort to resolve outstanding debt and litigation risks while maintaining operations. The board will publish further updates if material developments arise.