China Sunshine Paper Holdings Company Limited (SUNSHINE PAPER) has issued a profit warning, projecting a 25–40% year-on-year drop in profit attributable to owners for the six months ended 30 June 2026.

Management attributes the expected decline to two main factors: 1. A rise in prices of key raw materials, which has pushed up procurement costs and compressed gross profit margins. 2. The lack of gains from selling carbon emission allowances, a benefit that was present in the corresponding period of 2025 but absent in the current reporting period.

Despite the anticipated earnings contraction, the board states that the Group’s overall financial position and operations remain “sound and healthy,” expressing confidence in the company’s long-term growth prospects.

Finalised interim results are still being prepared; figures in the profit warning are based on preliminary management accounts and have not yet been reviewed by auditors or the audit committee.

Shareholders and potential investors are advised to exercise caution when dealing in SUNSHINE PAPER shares until the interim results are released.