Shanying International (600567) Q2 2025 earnings summary

Executive summary

• Revenue for H1 2025 was RMB 13.84 billion, down 2.89% year-over-year due to lower paper prices.

• Net profit attributable to shareholders was RMB 41.82 million, a 63.17% decrease year-over-year.

• Operating cash flow was RMB 1.38 billion, down 46.24% year-over-year.

• The company completed the construction of the Suzhou paper project, finalizing its seven-base domestic paper production layout.

• No interim dividend or capital increase from reserves was proposed.

Financial highlights

• Gross margin for the main business was 9.5%, up from 8.69% year-over-year.

• Basic EPS was RMB 0.01, down 74.37% year-over-year.

• Total assets reached RMB 53.98 billion, up 3.71% from the end of 2024.

• Net assets attributable to shareholders were RMB 15.11 billion, up 0.26% from year-end 2024.

• Non-recurring profit and loss items contributed RMB 107.60 million, mainly from government subsidies.

Outlook and guidance

• Industry expects continued pressure from overcapacity and price competition, but government anti-unfair competition policies may improve profitability in H2 2025.

• Cost-side relief is anticipated as new pulp capacity comes online and raw material prices stabilize.

• The company will focus on high-end corrugated paper, technology upgrades, and digital transformation to enhance competitiveness.