Shanying International (600567) investor relations material

Executive summary

• Revenue for 2025 was RMB 28.78 billion, down 1.54% year-over-year, with a net loss attributable to shareholders of RMB -1.14 billion, a significant increase in loss compared to 2024.

• Gross margin and profitability declined due to lower paper prices and strategic liquidity management, with a focus on cash flow and debt structure optimization.

• The company completed major capital projects, including the commissioning of a 900,000-ton packaging paper project in Suzhou.

• The board proposed no cash dividend for 2025, but executed a share buyback totaling RMB 500 million, equivalent to 44.03% of the year’s net loss.

Financial highlights

• Operating income: RMB 28.78 billion, down 1.54% year-over-year.

• Net loss attributable to shareholders: RMB -1.14 billion, compared to RMB -450.65 million in 2024.

• Operating cash flow: RMB 3.38 billion, down 6.64% year-over-year.

• Basic EPS: -0.20; diluted EPS: -0.18.

• Gross margin for the paper segment: 3.22%, down 1.49 percentage points year-over-year.

Outlook and guidance

• The company expects a moderate recovery in demand for packaging paper in 2026, with industry supply growth slowing and headwinds from import competition easing.

• Strategic focus will shift from asset expansion to liquidity and profitability improvement, with a “7030” target: paper business gross margin in the 70th percentile of the industry, and 30% annual growth in high-return packaging orders.

• Plans to introduce state-owned strategic investors and further optimize cash flow management.