Fujian Nanwang Environment Protection Scien-Tech Co. Ltd. A

Nanwang Technology released its 2026 interim report. Total operating revenue was 906 million yuan, and net profit attributable to the parent company was negative 12.5488 million yuan, swinging from profit to loss. This was a decrease of 14.8759 million yuan compared with the same period last year, down 639.25 percent year on year. Net cash inflow from operating activities was 19.193 million yuan. The asset-liability ratio was 40.92 percent, gross margin was 13.25 percent, return on equity was negative 0.86 percent, and diluted earnings per share was negative 0.06 yuan. The company had 13,200 shareholders, and the top ten shareholders held 49.90 percent of the total share capital.

Nanwang Technology disclosed its 2026 semi-annual report on August 29. In the first half of the year, it achieved total operating revenue of 906 million yuan, up 16.60% year-on-year, but net profit attributable to the parent company showed a loss of 12.5488 million yuan, compared with a profit of 2.3271 million yuan in the same period last year. Net profit after deducting non-recurring items was a loss of 16.4166 million yuan, compared with a profit of 1.7794 million yuan a year earlier. Net cash flow from operating activities was 19.193 million yuan, up 2.90% year-on-year. The company's main business is the research, manufacturing and sales of packaging such as eco-friendly paper bags, food packaging, non-woven bags, labels and cash register paper.

Nanwang Technology has decided to resubmit a director remuneration proposal to an extraordinary general meeting after it was previously vetoed by minority shareholders with 94.4% of votes against. At the same time, the company announced that the total investment for its core fundraising project, the annual production of 3.8 billion environmentally friendly paper products construction project, will be cut from 500 million yuan to 300 million yuan, a reduction of 40%, and the completion date will be further postponed from June 30, 2026 to September 30, 2026. The remuneration proposal sets an annual allowance of 100,000 yuan for independent directors and 30,000 yuan for external directors, while internal directors' pay is linked to performance, with performance-based compensation accounting for no less than 50% of the total of base salary and performance-based compensation. The company stated that the plan is necessary for healthy operations and development. Nanwang Technology reported its first annual loss after listing in 2025, with a net loss attributable to the parent company of 26.4315 million yuan, mainly due to impairment provisions, increased expenses, and declining gross margins. The adjusted fundraising project itself was originally changed from another IPO fundraising project, and the use of the remaining 112 million yuan in raised funds has not yet been clarified. Nanwang Technology's major clients include Anta, Meituan, Heytea, and McDonald's, and its founder Chen Kaisheng is known as the 'Paper Bag King'.

Nanwang Technology has reduced the investment for its annual production capacity of 3.8 billion eco-friendly paper products project from 500 million yuan to 300 million yuan, and postponed the expected date of reaching usable condition from June 30, 2026 to September 30, 2026. The company stated that the recovery of end-market demand in the industry has fallen short of expectations, and the original equipment procurement and investment pace does not match the current market environment, hence it is slowing down procurement and scaling back the investment. As of July 10, 2026, the cumulative amount of raised funds invested in the project, the investment progress, and the amount not yet invested have been disclosed in an announcement. Nanwang Technology is mainly engaged in eco-friendly paper bags, food packaging, and other products. In 2025, its revenue was 1.759 billion yuan, up 25.60 percent year-on-year, but it recorded a net loss attributable to the parent company of 26.4315 million yuan. In the first quarter of 2026, net profit attributable to the parent company was 1.9065 million yuan, down 73.39 percent year-on-year, and its share price has fallen 27.3 percent so far this year.