Anhui Shanying Paper Industry Co Ltd

Shanying International disclosed its 2026 interim report, with first-half operating revenue of 14.259 billion yuan, up 3.01% year on year, but net profit attributable to the parent swung from profit to loss, recording a loss of 682 million yuan, compared with a profit of 41.8154 million yuan in the same period last year. Net profit attributable to the parent after deducting non-recurring items was a loss of 724 million yuan, down 1000.36% year on year. In the second quarter, the company's operating revenue was 8.04 billion yuan, up 13.7% year on year, while net profit attributable to the parent was a loss of 184 million yuan, down 2147.7% year on year. The company's gross margin for the first half was 4.55%, down 4.95 percentage points year on year, with the papermaking business gross margin at only 1.01%.

Shanying International disclosed its earnings forecast, expecting a net loss of 680 million yuan for the first half of 2026, swinging from profit to loss year-on-year. The company said its second-quarter performance accelerated its recovery, with a single-quarter net loss of 183 million yuan, narrowing the loss by 314 million yuan compared with the first quarter, a 63.18% reduction in the loss margin, and it achieved a turnaround to profit in the single month of June. In the first half, production and sales in the papermaking segment grew simultaneously, but a decline in gross margin dragged down profitability, though profitability showed a month-by-month improving trend. The company has completed the redemption of its Ying 19 convertible bonds and Shanying convertible bonds, and its non-current liabilities due within one year dropped sharply from 5.766 billion yuan at the end of 2024 to 2.133 billion yuan at the end of 2025, restoring a sound financial structure. In addition, Shanying International launched a buyback plan of 300 million to 600 million yuan for cancellation and capital reduction, and introduced a stock option incentive plan, with vesting conditions requiring net profit attributable to the parent company of no less than 100 million yuan, 450 million yuan, and 900 million yuan for 2026, 2027, and 2028 respectively.

Shanying International issued a performance forecast, expecting a net loss attributable to shareholders of the listed company of 680 million yuan for the first half of 2026, swinging from profit to loss compared with the same period last year.