Chenming Paper reported a sharp recovery for the six months ended 30 June 2026 as production returned to normal across its five mainland mills.

Revenue surged 225.90 % year-on-year to RMB 6.87 billion (USD 945 million), driven by a 403 % jump in machine-made paper sales to RMB 5.64 billion. Chemical pulp contributed RMB 1.00 billion, while electricity, steam and other ancillary businesses added the balance.

The group cut its net loss attributable to shareholders to RMB 0.79 billion, a 79.61 % improvement from the RMB 3.86 billion deficit posted a year earlier. After stripping out extraordinary gains—chiefly RMB 0.19 billion from divesting non-core assets—core net loss narrowed 70.11 % to RMB 1.09 billion. Basic and diluted losses per share improved to RMB 0.27 from RMB 1.31.

Cost pressures remained acute. Operating costs nearly doubled to RMB 7.36 billion, limiting gross margin recovery. Net operating cash inflow fell 58.95 % to RMB 0.32 billion, reflecting higher raw-material outlays.

Balance-sheet leverage is still heavy. Total assets inched up 0.68 % since December to RMB 50.97 billion, while total liabilities rose to RMB 48.97 billion, lifting the gearing ratio to 96.09 %. Bank borrowings stood at RMB 28.92 billion; the current ratio was 18.43 % and the quick ratio 8.70 %.

Management attributed the earnings improvement to full restart of Shouguang, Zhanjiang, Huanggang, Jiangxi and Jilin sites, lower finance expenses and reduced impairment charges after the 2025 exit from financial leasing. The company continues to negotiate debt extensions and interest-rate cuts with lenders and has no major capex planned for 2H 2026.

No interim dividend was proposed.

Chenming warned that industry overcapacity, pulp price volatility and high leverage remain key risks. The board reiterated its “One-Two-Five” strategy focused on cost reduction, product upgrades and disposal of non-core assets to restore profitability.