LEE & MAN PAPER (2314) released its unaudited results for the six months ended 30 June 2026.

Revenue rose 21.3% year-on-year to HK$14.84 billion, driven by stronger export demand and a gradual domestic recovery. Gross profit reached HK$2.39 billion, up 37.7%.

Profit attributable to shareholders surged 69.3% to HK$1.37 billion. Earnings per share increased to HK31.97 cents from HK18.88 cents a year earlier.

The board declared an interim dividend of HK11.2 cents per share, 69.7% higher than the HK6.6 cents paid in the prior-year period.

Segment performance • Packaging paper remained the core business with external sales of HK$11.16 billion and segment profit of HK$824 million. • Tissue paper delivered HK$3.50 billion in external sales and HK$739 million in segment profit. • Pulp recorded HK$191 million in external sales and HK$57 million in segment profit.

Cost and expenses Distribution and selling expenses were HK$373.86 million, equivalent to 2.5% of revenue, largely steady year-on-year. General and administrative expenses amounted to HK$695.17 million, or 4.7% of revenue, slightly lower as a percentage of sales. Total finance costs fell to HK$90.49 million after HK$245.05 million was capitalised, supported by a lower average interest rate.

Balance-sheet highlights As at 30 June 2026, shareholders’ equity stood at HK$33.13 billion, up from HK$30.44 billion at year-end 2025. Total bank borrowings were HK$21.86 billion; net debt-to-equity improved to 0.60 from 0.63 six months earlier. The current ratio remained stable at 1.11.

Management outlook The company noted that resilient exports, policy support for consumption, and continued pulp-paper integration should sustain earnings momentum, while the new Guigang pulp mill in Guangxi—targeted to start up in 2027—will further strengthen supply-chain control and product diversification.