ST Chenming has issued its 2026 half-year earnings forecast, projecting a net loss attributable to the parent of 700 million to 800 million yuan, a significant reduction from the 3.858 billion yuan loss in the same period last year. The company attributed the narrower loss mainly to the full resumption of production, higher output and sales, reduced shutdown losses, a notable decline in financial expenses, and lower asset impairment losses. On the same day, the company announced that 20,826,013 A-shares held by controlling shareholder Chenming Holdings are set for judicial auction, representing 2.54 percent of its holdings and 0.71 percent of the company's total share capital. The auction is scheduled for August 13 to 14, 2026. If all shares are sold, Chenming Holdings' stake will drop from 27.87 percent to 27.17 percent, but this will not trigger a change in control. The company has posted losses for three consecutive years from 2023 to 2025, with the 2025 loss reaching 8.296 billion yuan, and its asset-liability ratio has climbed to 94.44 percent.
Shandong Chenming Paper Holdings LtdForecast narrower loss is positive, but controlling shareholder's shares being auctioned and high debt ratio are negative; overall ambiguous.