Chenming Paper (01812) fell more than 3%, dropping 3.53% to HK$0.82 by the time of writing, with a turnover of HK$1.3429 million.

On the evening of January 30, Chenming Paper issued a profit warning, stating that for the period from January 1, 2025, to December 31, 2025 (the reporting period), the company anticipates a net loss attributable to shareholders of the listed company to be between 8.2 billion yuan and 8.8 billion yuan.

This compares to a loss of approximately 7.411 billion yuan in the same period last year, representing a year-on-year expansion.

The net loss after deducting non-recurring gains or losses is expected to be between 7.55 billion yuan and 8.15 billion yuan.

The announcement attributed the performance change to the normal production at the Huanggang base in 2025, while the Shouguang, Jiangxi, and Jilin bases were largely idled for the first three quarters, and the Zhanjiang base was shut down for the entire year.

This led to a significant year-on-year increase in shutdown losses and maintenance costs, coupled with a substantial decline in production and sales volume, which adversely affected revenue and profits.

Furthermore, due to the production stoppages, the company made impairment provisions for certain assets, further impacting the current period's profit.