Zhengye International (03363.HK) issues a profit warning, expecting that the mid-term profit attributable to shareholders will not be less than 20 million yuan.

According to the Zhihui Finance APP, Zhengye International (03363.HK) announced that the group expects to achieve a profit attributable to owners of the company of no less than RMB 20 million for the six months ending June 30, 2026, compared to an attributable profit of approximately RMB 2.33 million for the six months ending June 30, 2025. This increase is primarily due to the recovery of prices in the Chinese packaging paper industry and improvements in the export market in the first half of 2026, which have driven up the average selling price of the groups corrugated core paper products year-on-year. Additionally, the group's phased upgrades to the production lines in the paper division have optimized production costs, leading to an increase in profitability in the paper division during the period.