Chenming Paper (01812) has announced 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 in the range of RMB8.2 billion to RMB8.8 billion. This compares to a loss of approximately RMB7.411 billion in the same period last year, representing a year-on-year expansion. The net loss after deducting non-recurring gains and losses is expected to be between RMB7.55 billion and RMB8.15 billion. The basic loss per share is projected to be RMB2.79 to RMB3.00.

The announcement attributes the performance change primarily 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 resulted in 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 profit. Furthermore, due to the production stoppages, the company recognized impairment provisions for certain assets, which further impacted the current period's profit.

To focus on the development of its core pulp and paper manufacturing business, the company divested all assets related to its financial leasing business in the fourth quarter and will no longer engage in any financial leasing activities. In accordance with accounting standards, the company performed impairment tests on the credit status of leasing clients during the reporting period and made bad debt provisions for a portion of the financial leasing business.

During the reporting period, with strong support from party committees, governments at various levels, and financial institutions, the company actively implemented multiple measures to enhance operational efficiency and management standards, focusing on comprehensive cost reduction and efficiency improvement across the entire process, as well as all-around new product development. These measures included steadily advancing the comprehensive resumption of production and operations, where the current operational rate of restarted production lines and capacity utilization have significantly increased compared to previous years; optimizing procurement processes and strengthening procedural management, leading to a notable reduction in raw material purchasing and logistics costs; and enhancing communication with financial institutions to secure arrangements for interest rate reductions and extensions, resulting in a substantial year-on-year decrease in financial expenses.