Yueyang Forest & Paper Co Ltd

Yueyang Forest Paper released its 2026 interim report. Total operating revenue was 3.954 billion yuan, down 11.69 percent year-on-year. Net profit attributable to the parent company was negative 9.7512 million yuan, swinging from profit to loss year-on-year, a decline of 106.83 percent. Net cash inflow from operating activities was 741 million yuan, an increase of 993 million yuan year-on-year. The company's asset-liability ratio was 61.99 percent, gross margin was 8.69 percent, return on equity was negative 0.13 percent, and diluted earnings per share was negative 0.01 yuan. The number of shareholders was 48,700, and the top ten shareholders held 52.00 percent of total share capital.

Yueyang Forest Paper issued a profit warning, estimating a net loss attributable to shareholders of 14 million yuan to 8 million yuan for the first half of 2026, with a net loss after deducting non-recurring items of 15 million yuan to 9 million yuan. The company explained that its main business was affected by market conditions, with average product selling prices falling year-on-year and gross margins trailing the same period last year. At the same time, a reduction in government grants led to lower other income, and an increase in losses on scrapping non-current assets pushed up non-operating expenses. In addition, to align with its medium- and long-term business strategy, the company implemented organisational and personnel changes, recognising severance benefits that drove up administrative expenses compared with the same period last year. In the first quarter of this year, net profit attributable to shareholders was 12.9183 million yuan, down 73.57 percent year-on-year, implying a second-quarter loss of more than 20 million yuan. For the full year 2025, Yueyang Forest Paper posted a net loss attributable to shareholders of 235 million yuan, a rare loss since its listing.