Shandong Huatai Paper Industry Shareholding Co Ltd

Huatai Co., Ltd. released its 2026 interim report, with net profit attributable to the parent company of 18.8906 million yuan, down 72.07% from the same period last year. Total operating revenue was 6.211 billion yuan, down 3.10% year-on-year. Net cash flow from operating activities was negative 69.8886 million yuan. The company's latest asset-liability ratio was 43.69%, gross margin was 7.69%, return on equity was 0.21%, and diluted earnings per share was 0.01 yuan.

Huatai Shares released its 2026 half-year report, with net profit attributable to the parent company of 18.89 million yuan, down 72.07% year on year. Operating revenue was 6.211 billion yuan, down 3.10% year on year. Net profit attributable to the parent company excluding non-recurring items was a loss of 1.98 million yuan, swinging from profit to loss compared with the same period last year. Net operating cash flow was negative 69.89 million yuan, mainly due to a large increase in receivables during the period. The company said competition in the cultural paper and coated paper markets is fierce, with end-user selling prices falling to recent lows, while production costs for wood pulp and coating chemical auxiliary materials remain rigid, and the decline in product selling prices exceeded the decline in raw material costs. The company plans to accelerate the ramp-up and output increase of its pulp lines, raise the substitution ratio of self-produced pulp, optimize the product mix of its paper products, and enhance the profitability of its chemical segment to offset pressure on the paper business.

Huatai Shares disclosed a performance forecast, estimating that net profit attributable to the parent company for the first half of 2026 will be between 14 million yuan and 21 million yuan, a year-on-year decline of 68.95% to 79.3%. Deducted non-recurring net profit is expected to be between negative 10 million yuan and 5 million yuan. The company stated that competition in the cultural paper and coated paper markets is intense, with market prices continuing to fluctuate downward. End-user selling prices have fallen to recent lows, while production costs such as wood pulp and coating chemical auxiliaries remain rigid. The decline in product selling prices has outpaced the drop in raw material costs, leading to a year-on-year decline in profit. Based on the latest closing price, the company's price-to-book ratio is approximately 0.54 times, and its price-to-sales ratio is approximately 0.39 times.