Minfeng Special Paper held an online briefing on its 2026 first-half results and cash dividend on October 8, responding to investor concerns about the earnings decline, gross margin trends across its three major businesses, and industry response measures. According to the semi-annual report disclosed on August 25, the company's first-half operating revenue was 608 million yuan, up 1.13% year on year; net profit attributable to the parent was 6.77 million yuan, down 55.11% year on year; net profit attributable to the parent after deducting non-recurring items was 3.16 million yuan, down 78.98% year on year; net operating cash flow was 4.65 million yuan, down 71.75% year on year. The company plans to distribute a cash dividend of 0.1 yuan per 10 shares, tax included, to all shareholders. The company explained that the decline in results was mainly due to intense competition in its leading products, a year-on-year decline in average gross margin, and the fact that after the phase one and phase two projects were transferred from construction in progress to fixed assets, the interest on project loans was no longer capitalized and was fully recorded in financial expenses. As for whether the second half can be turned around, the company said the overall operating trend is improving, and it is working hard on cost reduction, efficiency improvement, and market expansion. Specific results will be detailed in the third-quarter report to be disclosed on October 21. By business segment, in 2025 main business revenue was 1.181 billion yuan with a gross margin of 15.40%, of which cigarette paper series revenue was 540 million yuan with a gross margin of 25.16%, industrial supporting paper revenue was 490 million yuan with a gross margin of 9.85%, and tracing paper was 150 million yuan with a gross margin of negative 2.09%. In the first half of 2026, main business revenue was 575 million yuan, down slightly year on year, with a gross margin of 16.81%, including 28.02% for cigarette paper series, 9.57% for industrial supporting paper, and 3.72% for tracing paper. The company said it has improved production efficiency through intelligent manufacturing and digital transformation, completing 171 sample submissions in the first half, with cigarette paper for 10 new cigarette products passing user technical evaluation.
Minfeng Special Paper Co LtdFirst-half net profit fell 55.11% year on year on lower gross margin and higher financial expenses after project loans stopped being capitalized.
