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.
Yueyang Forest & Paper Co LtdSwung to a loss with net profit down 106.83% due to lower product prices and one-off costs.
