HK Stock Market Move | Shandong Chenming Paper (01812) fell more than 6%, expecting a full-year loss of over 6.5 billion yuan, with the company involved in lawsuits exceeding 2.6 billion yuan.

Shandong Chenming Paper (01812) fell more than 6%, as of the time of writing, it has fallen by 5.98% to HKD 1.1, with a turnover of HKD 2.6972 million. In terms of news, Shandong Chenming Paper issued a profit warning last night, expecting a net loss attributable to shareholders of the listed company of RMB 6.5 billion to RMB 7.5 billion in 2024, compared to a loss of RMB 1.281 billion in the same period last year. During the reporting period, the company's main product prices continued to decline, gross profit decreased; some financing lease customers operated poorly, leading to lawsuits, seizures, and other emergency situations, leading the company to increase the bad debt provision ratio for some financing lease customers; affected by the sequential shutdowns for maintenance of major production bases in the fourth quarter, production and sales volume declined, and the company made impairment provisions for some assets. Additionally, Shandong Chenming Paper announced that, up to now, a total of 164 lawsuits and arbitration cases have occurred within the past twelve months due to overdue debts, contract disputes, etc., involving a total amount of RMB 2.638 billion, accounting for 15.8% of the absolute value of the recent net assets. From November 19 last year to the 22nd of this month, a total of 165 bank accounts have been frozen, accounting for 23.64% of the company's total bank accounts; the cumulative amount frozen in the frozen bank accounts amounts to RMB 45.12 million. Currently, the Huanggang base is in normal production, one cultural paper production line and one mechanical pulp production line in the Shouguang base have resumed production, with a restored production capacity ratio of 23.23%; other production bases are undergoing planned shutdowns for maintenance, making efforts to promote resumption of work and production after the Spring Festival.