Guangdong Songyang Recycle Resources Co Ltd

Songyang Resources released its 2026 interim report. Total operating revenue was 280 million yuan, net profit attributable to the parent company was a loss of 29.2372 million yuan, and net cash flow from operating activities was a negative 11.4633 million yuan. The company's latest asset-liability ratio was 75.42 percent, up 1.84 percentage points from the previous quarter and up 9.14 percentage points from the same period last year. Gross margin was negative 0.19 percent, return on equity was negative 13.41 percent, and diluted earnings per share was negative 0.14 yuan. The number of shareholders was 14,700, and the top ten shareholders held 34.97 percent of total share capital.

Songyang Resources released its 2026 interim report on August 28. The company focused on its core business of environmentally friendly recycled paper, raised funds and optimized its asset structure by selling equity in a loss-making subsidiary, and also benefited from a market recovery that drove sales volume growth. During the reporting period, performance showed revenue growth and a significant narrowing of losses. However, affected by the production halt at a wholly owned subsidiary and asset disposal losses, the company remained in an overall loss-making position. In the reporting period, the company achieved operating revenue of 280 million yuan, up 25.91 percent year on year. Net profit attributable to the parent company was negative 29 million yuan, compared with negative 46 million yuan in the same period last year, with the loss narrowing year on year. Net profit after deducting non-recurring items was negative 27 million yuan, also a substantial reduction in losses compared with negative 46 million yuan in the same period last year. Net cash flow from operating activities was negative 11 million yuan. Although it was still a net outflow, it improved compared with negative 21 million yuan in the same period last year. The company is mainly engaged in the research, development, production and sales of high-strength corrugated base paper. During the reporting period, high-strength corrugated paper, as the core product, benefited from the market recovery, and increased sales volume drove operating revenue higher. However, the wholly owned subsidiary Shantou Songyang New Material Specialty Paper Company continued to incur losses due to the industry downturn and intensifying competition. It has suspended production since the fourth quarter of 2025 and has been advancing equity transfer matters during the reporting period, dragging down overall performance. The company recorded asset disposal gains of negative 46 million yuan in the current period, mainly due to losses from asset disposals, which had a negative impact on profit. Other income grew 81.42 percent year on year, thanks to an increase in value-added tax refunds, which to some extent offset the losses in the main business. Looking ahead, the company will deepen its presence in the core recycled paper sector, leverage the capacity advantage of 180,000 tonnes of high-strength corrugated paper, and strive to turn the segment from loss to profit.

Songyang Resources disclosed its earnings forecast, expecting a net loss attributable to the parent company of 28 million to 35 million yuan in the first half of 2026, compared with a loss of 45.6953 million yuan in the same period last year. The net loss after deducting non-recurring items is expected to be 25 million to 32 million yuan, compared with a loss of 45.8054 million yuan in the same period last year. The company is mainly engaged in the research, development, production and sales of environmentally friendly recycled paper. During the reporting period, through measures such as recovering funds, focusing on the main business, and reducing costs and increasing efficiency, the loss in the papermaking segment narrowed. However, affected by the shutdown of its wholly-owned subsidiary Shantou Songyang New Material Specialty Paper Company, the overall operation remains in a loss-making state with limited improvement.