Sun Paper Reports 2025 Net Profit Growth Amid Industry Downturn

Shandong Sun Paper Industry Co., Ltd. reported a net profit attributable to shareholders of 3.251 billion yuan for 2025, marking a 4.82% year-on-year increase, even as China’s paper industry experienced a broader decline in profitability. Total operating revenue reached 39.192 billion yuan, according to the company’s annual report released on April 10.

The company also announced a planned cash dividend of 2 yuan (tax inclusive) per 10 shares, amounting to approximately 559 million yuan in total payouts to shareholders.

The results contrast with wider industry trends. Data from the National Bureau of Statistics of China showed that while national output of machine-made paper and paperboard rose 2.9% in 2025, total industry profits fell by 13.6%, reflecting structural pressure from “increased production but not increased revenue.”

Sun Paper attributed its performance to capacity expansion and operational upgrades. During the year, the company commissioned eight paper machines and three pulp lines, including projects at its Guangxi and Shandong bases. These developments form part of its integrated pulp and paper strategy and signal a new phase of growth.

The company operates across three main segments—industrial paper, biomass-based materials, and fast-moving consumer goods—supported by a diversified portfolio that includes cultural paper, packaging paper, tissue products, specialty paper, and dissolving pulp. By the end of 2025, its annual pulp and paper production capacity exceeded 14 million tonnes.

By product category, kraft linerboard generated revenue of 11.374 billion yuan, up 4.05% year-on-year, while tissue paper revenue rose 33.47% to 2.699 billion yuan, making it the fastest-growing segment.

Analysts from Guotou Securities said the company’s ability to grow profits despite industry headwinds highlights its resilience and capacity to navigate economic cycles.

Looking ahead, Sun Paper is advancing projects at its Shandong base, including a 600,000-tonne bleached chemical pulp facility and a 700,000-tonne high-grade packaging paper line, both expected to begin trial production in the third quarter of 2026. The company is also strengthening synergies between its Guangxi operations and expanding its international footprint in Laos.

Chairwoman Li Na described 2026 as a year focused on transformation, efficiency, and quality improvement, with an emphasis on product innovation and digitalization to support future growth.