HK Stock Market Move | Shandong Chenming Paper (01812) opens lower by more than 14%, with accumulated overdue debt reaching 1.82 billion yuan, and over 70% of production capacity is suspended.

Shandong Chenming Paper (01812) opened more than 14% lower, dropping 14.12% to HK$1.46 by the time of publication, with a turnover of HK$808,100. On the news front, Shandong Chenming Paper announced last night that some of its debts are overdue and some bank accounts have been frozen. As of November 18, the total amount of overdue debts and interest owed by the company and its subsidiaries amounted to 1.82 billion yuan, accounting for 10.91% of the recent net assets; the total amount of frozen bank accounts is 64.83 million yuan, accounting for 0.39% of the net assets, involving 65 frozen bank accounts. Since the third quarter, the prices of the company's main products, especially white cardboard paper, have continued to decline, resulting in severe operating losses. In addition, some financial institutions have tightened the company's loan scale, leading to a tight liquidity situation. As of the date of the announcement, several production lines and bases of the company have temporarily stopped production, with a pulp and paper production capacity of 7.03 million tons, accounting for 71.7% of the total capacity.