Forest Packaging Group Co Ltd

Forest Packaging held a results briefing on October 8, disclosing that in the first half of this year it achieved operating revenue of 2.025 billion yuan, up 74.51% year on year, while net profit attributable to the parent was 8.1931 million yuan, down 73.68% year on year, and non-GAAP net profit was 5.3886 million yuan, down 79.62% year on year. The company said the revenue growth mainly came from increased papermaking capacity. Total profit was negative 5.9888 million yuan, narrowing the loss by 4.7651 million yuan compared with the same period last year, mainly because the loss at its controlling subsidiary United Paper narrowed. The decline in net profit was due to investment in papermaking projects, increased fixed-asset investment reducing VAT deductions, and a reduction in VAT refunds upon collection. Regarding the annual production capacity of 600,000 tonnes of digital inkjet paper industrial upgrade project that investors are focused on, the company responded that the project has not yet been profitable since it began production in 2025, but the loss in the reporting period narrowed significantly compared with 2025, and in the fourth quarter it may increase gains such as VAT refunds upon collection from comprehensive resource utilisation, which would help improve profitability. The company said the 600,000-tonne digital inkjet paper industrial upgrade project and the 500,000-tonne packaging paper equipment renewal and technical renovation project have both reached full production, forming a full industrial chain operating system from papermaking to paper packaging. After the two projects reach full production, product operating revenue is expected to grow exponentially compared with the scale of assets and operating revenue before the investment. As for the impact of the slow recovery in the consumer market, the company said it will leverage its advantage of a complete industrial chain, step up marketing efforts and increase R&D investment to respond, while also noting that based on historical years, second-half operating performance has shown some recovery compared with the first half.

Forest Packaging released its 2026 interim report, with net profit attributable to the parent company of 8.19 million yuan, down 73.68% from the same period last year. Total operating revenue was 2.03 billion yuan, and net cash inflow from operating activities was 80.70 million yuan. The latest asset-liability ratio was 40.62%, gross margin was 5.70%, ROE was 0.32%, and diluted earnings per share was 0.02 yuan.