Sun Paper's Q1 2026 Results Show Double-Digit Growth; Phase II of Specialty Paper Project Commences Production

Sun Paper reported higher revenue and profit for the first quarter of 2026, supported by ongoing expansion projects and increased production capacity across its pulp and paper operations.

According to the company’s first-quarter results released on May 9, revenue reached 10.083 billion yuan, up 1.87% year-on-year, while net profit attributable to shareholders rose 2.29% to 906 million yuan. Net profit excluding non-recurring items increased 0.35% to 886 million yuan.

As of the end of the quarter, Sun Paper’s total assets stood at 59.897 billion yuan, representing a 2.2% increase from the end of 2025. Net assets attributable to shareholders rose 2.4% to 31.23 billion yuan.

The company said it continues to advance several major production projects, including a 140,000-ton specialty paper project at its Yandian facility in Shandong Province. The second phase of the project, identified as PM43 at the Shandong base, commenced operations in January 2026.

Supporting facilities under development include a 600,000-ton-per-year bleached chemical pulp and alkali recovery project, as well as a 700,000-ton-per-year high-grade packaging paper project. Both facilities are expected to enter trial production during the third quarter of 2026.

In its previously released 2025 annual report, Sun Paper stated that it continued to strengthen its integrated forestry, pulp and paper strategy, establishing coordinated operations across its major production bases in Shandong and Guangxi in China, as well as Laos.

The company also confirmed that multiple projects entered operation during 2025, including the Phase II integrated forestry, pulp and paper project at its Guangxi Nanning Park and the Yandian specialty paper project in Shandong. A total of eight paper machines and three pulp lines were commissioned during the year.

By the end of 2025, Sun Paper’s annual pulp and paper production capacity had exceeded 14 million tonnes.