Paper & Forest Products

Nippon Paper announced on the 10th that it has established a "Damage Investigation Committee" to determine the cause of the damage and collapse of the smokestack at its Yatsushiro Mill, which was hit by the July 28 Kumamoto earthquake. The committee is made up of experts in earthquake engineering. At the Yatsushiro Mill, the earthquake caused the smokestack to collapse, resulting in nine deaths and other severe damage. Removal of part of the smokestack began in late August, but a fire broke out during demolition work on the 3rd of this month, and the prospect for resuming operations remains unclear.

Nippon Paper announced on the 10th that it has established a Damage Investigation Committee to determine the cause of the damage and collapse of a chimney at its Yatsushiro Mill, which was hit by the July 28 Kumamoto earthquake. The committee is made up of experts in earthquake engineering and related fields. At the Yatsushiro Mill, the earthquake caused the chimney to collapse, resulting in nine deaths and other severe damage. Removal of part of the chimney began in late August, but a fire broke out during demolition work on the 3rd of this month, and the prospect for resuming operations remains unclear.

Kangxin New Materials announced on the evening of September 4 that the company had received a notice of case filing from the China Securities Regulatory Commission because its periodic reports were suspected of violating information disclosure laws and regulations, and the CSRC decided to place the company under investigation. The company said its operating activities are currently normal, and it will actively cooperate with the investigation and fulfil its information disclosure obligations. The company's previously disclosed 2026 interim report showed that it achieved total operating revenue of 198 million yuan in the first half of the year, up 6.56 percent year on year, while net profit attributable to the parent company was a loss of 136 million yuan, compared with a loss of 134 million yuan in the same period last year. As of September 4, the company's share price stood at 3.17 yuan per share, giving it a total market value of 4.262 billion yuan.

Nippon Paper has said it cannot foresee when operations at its Yatsushiro Mill in Yatsushiro, Kumamoto Prefecture, which was damaged by the July 28 Kumamoto earthquake, will resume, and has changed its full-year earnings outlook to undecided. The mill is the only newsprint production base in Kyushu, accounting for just under 10% of domestic share (2025), but the company has begun supply from its Iwanuma Mill, and Oji Paper, Daio Paper, and Chuo Pulp Industry have started alternative production. The earthquake killed nine people, caused severe damage including damage to three chimneys and the collapse of office buildings, and a fire also broke out on September 3. In the Great East Japan Earthquake, it took about a year and a half to fully restore three mills in the Tohoku region, including the Ishinomaki Mill, and the restart of the Yatsushiro Mill is expected to require huge costs. The company had planned to invest about 31 billion yen to increase production of toilet paper and other products, but the disaster has forced it to navigate the difficult course of restarting the mill and rebuilding its production system.

LP Building Solutions announced it will indefinitely curtail oriented strand board production at its Jasper, Texas facility starting in October 2026 due to soft demand. The facility has an annual capacity of approximately 475 million square feet on a 3/8-inch basis. The decision follows a review of production needs across LP's network, considering operating costs, capital requirements, logistics, and long-term asset utilization. CEO Jason Ringblom stated that aligning production with demand is necessary for efficient operation through the cycle, while maintaining flexibility to restart capacity when conditions improve. LP will provide job search and career transition support to affected employees.

Yibin Paper released its 2026 interim report. During the reporting period, the company's total operating revenue was 1.023 billion yuan, down 16.87% year on year. Net profit attributable to the parent company was a loss of 43.63 million yuan, swinging from profit to loss year on year, a decline of 297.75%. Net cash inflow from operating activities was a negative 6.31 million yuan, down 101.97% year on year. The company's asset-liability ratio was 87.05%, gross margin was 19.55%, return on equity was negative 20.84%, and diluted earnings per share was negative 0.25 yuan. The number of shareholders was 20,100, and the top ten shareholders held 56.00% of total share capital.

Annie's Co released its interim 2026 report, with total operating revenue of 185 million yuan and net profit attributable to the parent of 1.4296 million yuan, down 27.16% from the same period last year. Net cash flow from operating activities was negative 58.724 million yuan, down 1225.55% year-on-year. The company's asset-liability ratio was 34.46%, gross margin was 13.71%, ROE was 0.20%, and diluted earnings per share was 0.00 yuan. The number of shareholders was 52,900, and the top ten shareholders held 25.33% of total share capital.

Bohui Paper has released its 2026 interim report. Total operating revenue was 9.454 billion yuan, down 1.15% year on year. Net profit attributable to the parent company was 77.0631 million yuan, a decrease of 14.39% from the same period last year. Net cash inflow from operating activities was 1.621 billion yuan. The asset-liability ratio was 69.77%, gross margin was 9.57%, return on equity was 1.03%, and diluted earnings per share was 0.06 yuan. The company had 39,500 shareholders, and the top ten shareholders held 62.22% of the total share capital.

ST Chenming released its 2026 interim report. Total operating revenue was 6.865 billion yuan, up 225.90% year-on-year. Net profit attributable to the parent was a loss of 786 million yuan, an improvement of 3.071 billion yuan compared with the same period last year, narrowing the loss. Net cash inflow from operating activities was 322 million yuan. The asset-liability ratio was 96.09%. Gross margin was negative 7.19%, up 1.42 percentage points from the previous quarter, rising for five consecutive quarters. Diluted earnings per share were negative 0.27 yuan, an improvement of 1.04 yuan from the same period last year. The number of shareholders was 93,700, and the top ten shareholders held 44.01% of total share capital.

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.

Vohringer has released its 2026 interim report. The company's total operating revenue was 96.2976 million yuan, down 30.42% year on year, while net profit attributable to the parent company was a loss of 37.0864 million yuan, with the loss widening compared with the same period last year. Net cash flow from operating activities was a negative 53.939 million yuan. The asset-liability ratio was 26.29%, the gross margin was negative 1.90%, return on equity was negative 4.47%, and diluted earnings per share was negative 0.10 yuan. The company had 7,068 shareholders, and the top ten shareholders held 74.86% of the total share capital.

Yongan Forestry released its 2026 interim report. Total operating revenue was 151 million yuan, up 14.73 percent year on year, but net profit attributable to the parent company was a loss of 19.3362 million yuan, with the loss widening by 1.7186 million yuan compared with the same period last year. Net cash flow from operating activities was a negative 31.3914 million yuan, down 465.08 percent year on year. The company's asset-liability ratio was 36.56 percent, and gross margin was 11.88 percent, marking a second consecutive year of improvement. Diluted earnings per share were a negative 0.06 yuan, total asset turnover was 0.10 times, and inventory turnover was 0.27 times. The number of shareholders was 18,900, and the top ten shareholders held 45.98 percent of total share capital.

Pingtan Development released its 2026 interim report, showing total operating revenue of 482 million yuan, down 35.13% year on year. Net profit attributable to the parent company was a loss of 69.47 million yuan, swinging from profit to loss and down 560.50% year on year. Net cash inflow from operating activities was 36.02 million yuan, down 57.02% year on year. The company's asset-liability ratio was 39.35%, gross margin was 7.89%, return on equity was negative 4.08%, and diluted earnings per share was negative 0.04 yuan.

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.

HuaWang Technology disclosed its 2026 semi-annual report on August 27. In the first half, it achieved total operating revenue of 1.457 billion yuan, down 10.42% year-on-year; net profit attributable to the parent company was 131 million yuan, down 15.66% year-on-year; and non-GAAP net profit was 111 million yuan, down 27.67% year-on-year. The company plans to distribute a cash dividend of 2 yuan, tax included, for every 10 shares to all shareholders. Net cash flow from operating activities was 145 million yuan, up 31.82% year-on-year. As of the end of the first half, the company's inventory book value was 813 million yuan, accounting for 20.74% of net assets.

Pingtan Development disclosed its 2026 semi-annual report on August 27. In the first half of the year, it achieved total operating revenue of 482 million yuan, down 35.13 percent year on year. Net profit attributable to the parent company was a loss of 69.4698 million yuan, compared with a profit of 15.0856 million yuan in the same period last year. Net profit after deducting non-recurring items was a loss of 152 million yuan, compared with a profit of 12.967 million yuan a year earlier. Net cash flow from operating activities was 36.0178 million yuan, down 57.02 percent year on year. During the reporting period, the company's basic earnings per share was negative 0.0367 yuan, and the weighted average return on net assets was negative 3.99 percent. The company's main businesses are afforestation and forest management, processing and sales of forest products, trading, and businesses related to the opening up and development of the Pingtan Comprehensive Experimental Zone.

Huawang Technology released its 2026 interim report. Total operating revenue was 1.457 billion yuan, down 10.42% from the same period last year. Net profit attributable to the parent company was 131 million yuan, down 15.66% year-on-year. Net cash inflow from operating activities was 145 million yuan. The asset-liability ratio was 32.67%, gross margin was 15.56%, and diluted earnings per share was 0.24 yuan, down 14.29% year-on-year. The company had 15,200 shareholders, and the top ten shareholders held 54.43% of total share capital.

Minfeng Special Paper has released its 2026 interim report. The company's total operating revenue was 608 million yuan, up 1.13% year on year. Net profit attributable to the parent company was 6.77 million yuan, down 55.11% year on year. Net cash flow from operating activities was 4.65 million yuan, down 71.75% year on year. The company's asset-liability ratio was 49.37%, gross margin was 13.98%, return on equity was 0.45%, and diluted earnings per share was 0.02 yuan. The number of shareholders was 15,400, and the top ten shareholders held 44.06% of the total share capital.

Pingtan Development released its 2026 interim report on August 26. Affected by the contraction of its real estate segment and the debt crisis of partner Evergrande, performance fell sharply during the reporting period and swung to a loss, though a large investment gain from disposing of a subsidiary's equity partially offset pressure on the core business. During the reporting period, the company achieved operating revenue of 482 million yuan, down 35.13 percent year on year. Net profit attributable to the parent company was negative 69 million yuan, turning from profit to loss year on year. Net profit after deducting non-recurring items was negative 152 million yuan, down 1,275.61 percent year on year. Forest product processing and sales were the core revenue source, generating revenue of 361 million yuan, accounting for 74.86 percent of total revenue and up 13.58 percent year on year. The real estate business generated revenue of only 52 million yuan, down sharply by 80.80 percent year on year, with its revenue share falling to 10.89 percent. The change in performance was mainly because the controlling subsidiary Zhongfu Strait Pingtan Real Estate entered bankruptcy liquidation proceedings and was no longer included in the consolidated statements, while the company also recognised asset impairment losses of 221 million yuan. The company generated investment income of about 107 million yuan through disposal of long-term equity investments, making the net loss attributable to the parent company smaller than the net profit after deducting non-recurring items, but this gain is not sustainable. Going forward, the company's business focus will return further to its forestry and wood industry core business, but it needs to guard against challenges such as raw material cost fluctuations, stricter environmental standards, and weak downstream demand.

Kangxin New Materials released its 2026 interim report, showing total operating revenue of 198 million yuan, up 6.56 percent year on year, but net profit attributable to the parent company was a loss of 136 million yuan, with the loss widening compared with the same period last year. Net cash flow from operating activities was negative 80.72 million yuan, a decrease of 58.80 million yuan year on year. The asset-liability ratio rose to 51.05 percent, gross margin was negative 18.21 percent, return on equity was negative 3.90 percent, and diluted earnings per share was negative 0.10 yuan. The company had 47,200 shareholders, and the top ten shareholders held 43.78 percent of total share capital.

Yueyang Forest Paper released its 2026 interim report on August 26. Affected by lower prices for major products and one-off costs from organizational changes, the company swung to a loss in the reporting period, but operating cash flow improved significantly. During the period, the company achieved operating revenue of 3.954 billion yuan, down 11.69 percent year on year. Net profit attributable to shareholders was negative 10 million yuan, down 106.83 percent year on year. Net profit excluding non-recurring items was negative 13 million yuan, down 110.65 percent year on year. Net cash flow from operating activities was 741 million yuan, a sharp improvement from negative 252 million yuan in the same period last year, mainly due to stronger collection of accounts receivable and changes in the scale of bill settlement business. The company's main business covers pulp and papermaking, ecological landscaping, and carbon sink development, with pulp and paper production capacity of 2.4 million tonnes per year. Subsidiary Juntai Technology was squeezed by an approximately 18 percent year-on-year decline in pulp product prices and rising costs, with net profit falling sharply by 61.31 percent year on year to 86 million yuan. In addition, the company implemented organizational and personnel changes, and recognized severance benefits that caused administrative expenses to rise 17.36 percent year on year. Looking ahead, the company relies on its integrated forestry, pulp, and paper layout and advantages in centralized raw material procurement, and is expected to remain resilient amid industry consolidation. However, raw material price fluctuations, slower-than-expected recovery in downstream demand, and industry capacity expansion remain the main risks.

Kangxin New Materials disclosed its 2026 semi-annual report on August 26. In the first half, total operating revenue reached 198 million yuan, up 6.56% year on year, but net profit attributable to the parent company was a loss of 136 million yuan, slightly wider than the loss of 134 million yuan in the same period last year. Net profit after deducting non-recurring items was a loss of 137 million yuan, and net cash flow from operating activities was negative 80.72 million yuan, a marked deterioration from negative 21.92 million yuan a year earlier. The company mainly engages in container flooring, new wood-based composite materials, and prefabricated timber structural building components. As of the end of the first half, the company's inventory book value was 4.17 billion yuan, accounting for 119.94% of net assets, with an inventory write-down provision ratio of 4.26%.

HuaWang Technology released its 2026 interim report on August 26. Revenue and profit both declined during the reporting period, but operating cash flow improved significantly, and the company announced a substantial cash dividend plan. The financial report shows the company achieved operating revenue of 1.457 billion yuan, down 10.42% year-on-year; net profit attributable to the parent company was 131 million yuan, down 15.66% year-on-year; and non-GAAP net profit was 111 million yuan, down 27.67% year-on-year. Net cash flow from operating activities was 145 million yuan, up 31.82% year-on-year. The company plans to distribute a cash dividend of 2.00 yuan per 10 shares before tax to all shareholders, totaling 111 million yuan, accounting for 84.78% of the first-half net profit attributable to the parent company. The decline in performance was mainly affected by weak downstream demand for home furnishing consumption, increased exchange losses due to currency fluctuations, and reduced government subsidies. Through cost reduction and efficiency improvement, the company's operating costs fell more than revenue, easing profit pressure. Looking ahead, the decorative base paper industry is characterized by optimizing existing capacity and improving the quality of new capacity. With its green manufacturing advantages and global footprint, the company is expected to benefit from increasing industry concentration.

Yueyang Forest & Paper disclosed its 2026 semi-annual report on August 27. In the first half of the year, it achieved total operating revenue of 3.954 billion yuan, down 11.69 percent year on year. Net profit attributable to the parent company was a loss of 9.7512 million yuan, compared with a profit of 143 million yuan in the same period last year. Net profit after deducting non-recurring items was a loss of 13.0898 million yuan, compared with a profit of 123 million yuan a year earlier. Net cash flow from operating activities was 741 million yuan, versus negative 252 million yuan in the prior-year period. During the reporting period, basic earnings per share were negative 0.01 yuan, and the weighted average return on equity was negative 0.13 percent. The company's main businesses are pulp and paper manufacturing, as well as ecological landscaping, forestry, and carbon sink operations.

Shanying International released its 2026 interim report, with net profit attributable to the parent company at negative 682 million yuan, swinging from profit to loss. Total operating revenue was 14.259 billion yuan, and net profit attributable to the parent company decreased by 724 million yuan compared with the same period last year, down 1730.29 percent year on year. Net cash inflow from operating activities was 1.644 billion yuan, the asset-liability ratio was 71.15 percent, gross margin was 4.55 percent, and diluted earnings per share was negative 0.11 yuan.

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%.