2025-08-29-深交所-ST晨鸣B_2025年半年度报告（英文版）页_254页_15mb

2025 Interim Report Summary

Core Content Overview

This document is the 2025 Interim Report of Shandong Chenming Paper Holdings Limited, detailing the company's financial status, business activities, and strategic direction for the first half of 2025. The report includes important notices, definitions, company profile, financial indicators, and management analysis, providing a comprehensive view of the company's performance and outlook.

Main Points and Key Information

1. Important Notices and Definitions

• The Board of Directors, Supervisory Committee, and Senior Management have confirmed the accuracy and completeness of the interim report.
• Key entities and their definitions are outlined in the report, including the Company, Parent Company, Chenming Holdings, and various subsidiaries and stock exchanges.
• The reporting period spans from 1 January 2025 to 30 June 2025.

2. Company Profile

• Stock Abbreviation: ST晨鳴 (000488) on Shenzhen Stock Exchange and Chenming Paper (01812) on Hong Kong Stock Exchange.
• Legal Representative: Hu Changqing.
• Contact Information:
  • Board Secretary: Yuan Xikun
  • Security Affairs Representatives: Zhang Chuanyong
  • Hong Kong Company Secretary: Chu Hon Leung
  • All contact details remain unchanged during the reporting period.

3. Financial Highlights

• Revenue (RMB): 2,106,630,952.30 (a -84.83% decline compared to the prior year).
• Net Profit Attributable to Shareholders (RMB): -3,857,953,190.56 (a -13,567.59% decline).
• Net Cash Flows from Operating Activities (RMB): 785,303,274.19 (a -60.59% decline).
• Total Assets (RMB): 54,698,875,991.74 (a -13.87% decline).
• Net Assets Attributable to Shareholders (RMB): 5,318,763,216.33 (a -41.91% decline).
• No distribution of cash dividends or bonus shares is proposed, and no increase in share capital from reserves is planned.

4. Extraordinary Gains or Losses

• The Company reported extraordinary losses totaling RMB212,589,574.75, including:
  • Loss from disposal of non-current assets: -97,049,878.76
  • Government grants: 25,503,367.73
  • Fair value changes of financial assets: 8,439,571.88
  • Reversal of impairment provisions: 13,201,496.76
  • Debt restructuring: -37,171,293.24
  • Changes in fair value of consumable biological assets: -129,059,190.34
  • Other non-operating expenses: -18,188,031.78
• Income tax effect: -2,948,680.16
• Minority interests (after tax): -24,683,063.16

5. Industry Situation and Market Outlook

• The paper industry is a cyclical industry closely tied to the overall economic state.
• In the first half of 2025, supply increased due to new production capacity, while demand weakened, leading to price declines for products like culture paper and white cardboard.
• Cost reductions in raw materials were not sufficient to offset the revenue decline, pressing profit margins.
• Long-term outlook is positive due to:
  • Implementation of "dual carbon" goals.
  • Policy measures to curb low-price competition.
  • Improved domestic economic circulation.
  • New national standards that increase energy consumption limits and environmental compliance costs.
• The Shanghai Futures Exchange and Central Commission for Financial and Economic Affairs are promoting orderly industry restructuring and market optimization.

6. Business Overview

• The Company is a large modern conglomerate focused on pulp production and paper making.
• It has production bases in Shandong, Guangdong, Hubei, Jiangxi, Jilin, and other regions.
• It is the first domestic paper company to achieve pulp and paper capacity balance.
• During the reporting period, machine-made paper was the main source of revenue and profit.
• Production lines at Zhanjiang, Jilin, and Shouguang were shut down or under maintenance, leading to revenue and profit declines.
• The Company made impairment provisions and bad debt provisions, impacting profitability.
• The Company is working to resume production and improve operational efficiency through equipment upgrades, cost control, and cash flow management.

7. Major Products and Applications

• The Company offers a wide range of products across various series:
  • Culture Paper Series: Includes brands like "BIYUNTIAN", "CLOUDY MIRROR", "CLOUDY LEOPARD", and "YUNJIN" for printing publications, textbooks, and promotional materials.
  • Coated Paper Series: Offers "SNOW SHARK", "EAGLE", and "RABBIT" for high-quality printing.
  • White Cardboard Series: Used in cigarette packaging, food containers, and packaging materials.
  • Copy Paper Series: Includes "GOLDEN MINGYANG", "GOLDEN CHENMING", and other brands for office and educational use.
  • Industrial Paper Series: Includes anti-stick base paper and PE paper for industrial and packaging applications.
  • Special Paper Series: Such as thermal paper and glassine paper for electronic, medical, and food packaging.
  • Household Paper Series: Includes toilet paper, facial tissue, and other daily consumer products.

8. Liquidity and Capital Structure

• Current Ratio: 23.72%
• Quick Ratio: 17.34%
• Gearing Ratio: 85.93%
• The Group’s liquidity was affected by production shutdowns.
• A syndicated loan of RMB2.31 billion was approved for resuming production.
• The Group has 9,095 employees as of 30 June 2025.
• Staff remuneration for the first half of 2025 was RMB432.1004 million (down from RMB1,144.3267 million in 2024).
• The Group's existing bank deposits are used for production, operation, equipment maintenance, and R&D.

9. Core Competitiveness

• The Company has developed strong brand influence and comprehensive competitiveness through over 60 years of innovation.
• Pulp and Paper Integration Strategy:
  • The Company is the first in China to achieve wood pulp self-sufficiency.
  • It has chemical pulp production lines in Shouguang, Zhanjiang, and Huanggang.
  • This integration provides cost advantages, upstream material security, and long-term competitiveness.
• Scale Advantages:
  • The Company operates in major markets across China.
  • It has built international logistics centres, railway dedicated lines, and docks to improve logistics efficiency and stabilise logistics costs.
• Product Advantages:
  • Offers the widest and most complete product range in the Chinese paper industry.

Summary of Key Strategic Measures

• Production Resumption: The Company is working to resume operations at its production bases.
• Cost Management: Implemented cost-saving measures, raw material procurement control, and operational efficiency improvements.
• Financial Support: Secured RMB2.31 billion in syndicated loans to support resumption of production.
• Government and Financial Collaboration: Actively engaged with government authorities and financial institutions for working capital support and interest rate reduction.
• Future Outlook: Optimistic about industry restructuring, market concentration, and operational recovery in the second half of 2025.