Chenming Paper (ASX: 01812) has issued an announcement projecting a net loss attributable to shareholders of the listed company in the range of 7 to 8 billion yuan for the first half of 2026.

This compares to a loss of 38.58 billion yuan in the same period last year. During the current reporting period, the company proactively adapted to market shifts and enhanced its refined management.

By establishing clear strategic operational objectives, restructuring its organization, improving management systems, and optimizing logistics and transportation, it has also advanced technical process upgrades, strengthened in-house equipment maintenance, and diversified sales channels.

These measures have enabled the company to achieve a production-sales balance, further reduce costs and increase efficiency, resulting in a significant reduction in its overall operating loss. Throughout the reporting period, all of the company's production bases have fully resumed operations, leading to a substantial year-on-year increase in production and sales volume and a significant decrease in losses from operational shutdowns.

The company has actively engaged with various creditors to negotiate further interest rate reductions, leading to a notable decline in financial expenses. Furthermore, the divestment of all assets related to its financial leasing business in the fourth quarter of last year has contributed to a substantial year-on-year reduction in credit impairment losses and asset impairment losses for this reporting period.

Moving forward, the company will resolutely implement its "One-Two-Five" strategic development plan. It is committed to the goal of "building a first-class management team and achieving first-class operational performance."

Focusing on "cost reduction and efficiency improvement, product innovation, and compliance prevention" as its main themes, the company will strengthen team development, deepen management reform and innovation, and enhance its industrial ecosystem.

It plans to restructure its production management system, intensify the disposal of non-core assets, cultivate brand credibility, and make every effort to achieve high-quality and sustainable corporate development.