SUNSHINE PAPER issues a profit warning, expecting a decline of approximately 55% to 65% in interim profit attributable to shareholders
SUNSHINE PAPER issued a profit warning, expecting that the interim profit attributable to shareholders for the period ending June 30, 2025, will decline by approximately 55% to 65%. The main reasons include a decrease in paper product prices, a reduction in value-added tax and government subsidies, as well as intensified operating losses due to a sluggish real estate market. Despite the decline in performance, the board remains optimistic about the overall financial condition and long-term development of the group
According to the Zhitong Finance APP, Sunshine Paper (02002) announced that it expects the profit attributable to the owners of the group for the six months ending June 30, 2025, to decline by approximately 55% to 65% compared to the same period in 2024.
The decline in the group's performance for the six months ending June 30, 2025, is mainly due to a decrease in the selling price of paper products, leading to a decline in revenue and gross profit; a decrease in the amount of value-added tax, resulting in a decline in unconditional government subsidies; a sluggish real estate market in China, which has exacerbated the operating losses of Sunshine Prince (Shouguang) Specialty Paper Co., Ltd. (which was accounted for as a joint venture of the company until June 30, 2024, but became a wholly-owned subsidiary of the company by June 30, 2025); and fair value losses on financial assets measured at fair value through profit or loss.
In addition, the board believes that the overall financial condition and operations of the group remain sound and robust, and it maintains an optimistic outlook on the group's long-term growth and development
