CHENMING PAPER (01812) expects a net loss attributable to the parent company of 700 million to 800 million yuan in the first half of the year.

CHENMING PAPER (01812) announced that it is expected to incur a net loss attributable to shareholders of the listed company of RMB 700 million to 800 million in the first half of 2026, compared to a loss of RMB 3.858 billion in the same period last year. During the reporting period, the company actively adapted to market changes, strengthened refined management, set clear strategic operational goals, streamlined organizational structure, improved management systems, and coordinated optimization of logistics transportation, promoted technological innovation, strengthened equipment maintenance, expanded diversified sales channels, among a series of measures to achieve production and sales balance, further reduce costs and increase efficiency, significantly reducing the overall operating losses of the company. During the reporting period, all production bases of the company resumed operations, with production and sales volume increasing significantly year-on-year, and losses from suspension of work decreasing significantly year-on-year; the company actively negotiated further interest rate reductions with creditors, resulting in a significant decrease in financial expenses; in the fourth quarter of last year, the company divested all assets related to its finance leasing business, leading to a substantial decrease in credit impairment losses and asset impairment losses compared to the current reporting period. Next, the company will firmly implement the "125" strategic development plan, focusing on the goal of "building a first-class management team and creating first-class operational performance", with a focus on "cost reduction and efficiency enhancement, product innovation, and compliance and prevention". Strengthen team building, deepen management reform and innovation, improve the industrial ecological chain, restructure the production management system, increase efforts to dispose of non-core assets, cultivate brand credibility, and strive to achieve high-quality and sustainable development of the enterprise.