CHENMING PAPER (01812) announced its annual results for the period ended December 31, 2025. The company recorded operating revenue of RMB 6.187 billion, a decrease of 72.78% year-on-year. The net loss attributable to shareholders of the listed company was RMB 8.296 billion, representing an 11.94% widening compared to the previous year. The basic loss per share was RMB 2.83.

During the reporting period, the company's Huanggang production base operated normally. However, the Shouguang, Jiangxi, and Jilin production bases were largely idle for the first three quarters of 2025, while the Zhanjiang base was shut down for the entire year. This resulted in a significant year-on-year increase in shutdown-related losses and maintenance expenses. The production and sales volume of machine-made paper declined substantially compared to the prior year, negatively impacting both revenue and profit. Furthermore, due to the production stoppages, the company recognized impairment provisions on certain assets, which further affected the current period's profit.

Additionally, to focus on its core pulp and paper manufacturing business, the company divested all assets related to its financing lease operations in the fourth quarter of 2025. Consequently, the company no longer engages in any financing lease activities. In accordance with relevant accounting standards, the company performed impairment tests on the credit quality of its lease customers during the reporting period and recognized bad debt provisions for a portion of the financing lease business.

During the reporting period, with strong support from government authorities and financial institutions, the company implemented multiple measures to enhance operational efficiency and management standards, focusing on comprehensive cost reduction and efficiency improvements across all processes, as well as the development of new products. These measures included: steadily advancing the full resumption of production, with the operational rate and capacity utilization of restarted production lines significantly higher than in previous years; optimizing procurement processes and strengthening procedural management, leading to a notable reduction in raw material purchasing and logistics costs; and enhancing routine communication with financial institutions to secure interest rate reductions and loan extensions, resulting in a 16.87% decrease in financial expenses compared to the same period last year.