Shandong Chenming Paper Holdings Reports RMB 8.3 Billion Loss Amid Production Shutdowns and Industry Downturn

Shandong Chenming Paper Holdings Reports RMB 8.3 Billion Loss in FY2025 Amid Production Shutdowns and Industry Downturn

- During FY 2025, the Company produced 1.09 million tonnes of machine-made paper and sold 1.00 million tonnes of machine-made paper, achieving revenue of RMB 6,187 million

The Pulp and Paper Times

The year 2025 marked an exceptionally challenging year in Chenming Group’s development history. Confronted with multiple hurdles, including a prolonged cyclical industry downturn, suspended operations and production at its production bases, an urgent need to enhance internal controls, and the imposition of other risk warnings, the Company once fell into operating difficulties and faced unprecedented challenges to its development. During FY 2025, the Company produced 1.09 million tonnes of machine-made paper and sold 1.00 million tonnes of machine-made paper, achieving revenue of RMB 6,187 million and net profit attributable to shareholders of the Company of a loss of RMB 8,296 million. During this critical time, bolstered by the robust support of Party committees, governments at all levels and financial institutions, the management team of the Company led the entire workforce to tackle these challenges head-on and fight against the odds. Through steady progress in executing a series of initiatives, such as resuming operation and production, capital coordination, deepening reforms, and enhancing quality and efficiency, the Company managed to secure its foundation for business development and open a new chapter for the Company’s turnaround and recovery.

“During the reporting period, the Company consistently regarded the resumption of production as its top priority for overcoming its operational difficulties. Under the meticulous guidance of Party committees and governments at all levels, and with strong support from financial institutions, the Company actively secured the new syndicated loan disbursement, diversified its raw material supply channels, aggressively advanced equipment maintenance, and pushed for the orderly resumption of operation and production across its production bases. In 2025, thanks to the relentless efforts of all the management and staff, the Huanggang production base maintained stable production, while the three major production bases in Shouguang, Jiangxi and Jilin successfully resumed operation one after another. As of the date of this report, the Zhanjiang production base has resumed full operation. The Company’s ability to generate its own working capital gradually recovers, laying a robust foundation for securing market share, upholding its brand reputation and driving a return to profitability.” Mr. Jiang Yanshan, Chairman of Shandong Chenming Paper Holdings said in the annual report for FY 2025.

Riding the momentum of the long journey ahead, the Company presses forward to shoulder the challenges that await. The year 2026 marks the beginning year of China’s 15th Five-Year Plan. It is a year of both opportunities and challenges, and a critical year for Chenming Group to turn the tide and embark on a path of high-quality development. In the coming year, the Company will closely align with the “One-Two-Five” strategic development plan. It will boost efficiency across five areas: management team building, industrial ecosystem chain enhancement, smart technology and digitalisation development, reform and innovation deepening, and brand credibility building. 

It will strictly enforce flexible mechanisms that allow for upward and downward mobility in management roles, performance-based compensation adjustments and dynamic staff adjustments. It is committed to fostering a sense of vigilance, a pragmatic work ethic and problem-solving capabilities among all employees. With an unwavering spirit and a forward-moving determination, the Company will tackle challenges head-on and take concrete actions to steer the Company towards sustained stability, continuous improvement and high-quality development, rewarding the trust and support of shareholders with outstanding performance.

In 2025, the Company’s Huanggang production base was in normal operation, while the production bases in Shouguang, Jiangxi and Jilin were largely inactive during the first three quarters, and the Zhanjiang production base remained idle throughout the year. Shutdown losses and maintenance expenses incurred for the period increased year-on-year, and the production and sales of machine-made paper experienced a significant year-on-year decrease, which affected both revenue and profit. Meanwhile, due to the operational halts, the Company made impairment provisions for certain assets, which further affected profit for the current period. Furthermore, to focus on its principal activities of pulp production and papermaking, the Company divested all assets related to its financial leasing business in the fourth quarter of 2025 and had since ceased all financial leasing activities.
 

Published at : Sep 23, 2026 06:29 AM (IST)

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