Yueyang Forest & Paper Reports Steady Revenue Growth in 2025, Strengthens Core Business After Strategic Asset Optimization

Yueyang Forest & Paper Co., Ltd. has reported steady revenue growth for 2025 while undertaking strategic asset adjustments aimed at strengthening its core pulp and paper operations and positioning the company for long-term development ahead of China’s upcoming 15th Five-Year Plan.

According to the company’s 2025 annual report released on March 11, Yueyang Forest & Paper recorded operating revenue of 8.665 billion yuan, representing a year-on-year increase of 6.78%. The growth was achieved despite intensified competition in the paper industry and continued price pressure in the cultural paper segment.

At the end of the reporting period, the company reported total assets of 20.535 billion yuan, while net assets attributable to shareholders reached 7.612 billion yuan, with an asset-liability ratio of 62.93%. The company’s core pulp and paper operations maintained stable production and sales performance during the year.

Non-Recurring Impairments Drive Reported Loss

Yueyang Forest & Paper recorded a net loss of 235 million yuan attributable to shareholders in 2025, compared with a profit in the previous year. The loss was primarily the result of non-recurring, non-cash impairment charges totaling approximately 399 million yuan.

These included:

• Goodwill impairment of 348 million yuan, mainly related to the ecological landscaping business operated by subsidiary Chengtong Kaisheng.

• Contract asset impairment losses of 51 million yuan.

The ecological landscaping segment has faced operational challenges due to cyclical industry conditions and slower government investment in infrastructure and landscaping projects. In line with prudent accounting standards, the company recorded impairment provisions to more accurately reflect asset values and reduce potential future financial uncertainties.

While these adjustments impacted short-term profitability, Yueyang Forest & Paper emphasized that its core paper manufacturing and commodity cellulose businesses remained stable, with no significant decline in operational performance.

Strategic “Burden Clearing” to Strengthen Core Operations

The impairment measures represent what the company described as a strategic cleanup of legacy assets, enabling it to streamline operations and concentrate resources on its primary pulp and paper business.

By downsizing operations within the ecological landscaping segment and recognizing the related asset impairments, the company aims to improve asset quality and enhance financial transparency. The move is expected to support stronger operational performance over the long term.

Operational Highlights

Despite the accounting adjustments, Yueyang Forest & Paper reported several positive developments across its business units:

Capacity and Technology Upgrades
The first phase of the 450,000-ton cultural paper technological upgrade project at the Yueyang production base progressed smoothly during the year. Paper machines involved in the project achieved record production speeds for comparable units, improving both capacity and operational efficiency.

Strong Performance from Juntian Technology
At the Huaihua production base, subsidiary Juntian Technology maintained stable operations and delivered operating profit of 456 million yuan in 2025, making it a key contributor to the group’s overall performance. The unit also continued developing new softwood fiber products and advancing projects in fluff pulp and high-purity lignin, supporting future product diversification.

Enhanced Raw Material Security
Maoyuan Forestry strengthened its wood chip procurement network and expanded supply channels, enhancing raw material security for the company’s pulp and paper operations.

Carbon Sequestration Business Development
Chengtong Carbon Sequestration, the company’s ecological carbon project entity, made steady progress in project development, advancing 20 carbon sequestration projects into the development stage during 2025. The company believes its early participation in this field positions it well to benefit from the expansion of China’s carbon market.

Operational Efficiency Improvements
Yueyang Forest & Paper continued to implement lean management practices and cost control measures, focusing on improving efficiency in areas such as self-produced pulp utilization and energy consumption. The company also strengthened internal control systems and risk management to improve operational performance.

Positioned for Industry Transformation and Policy Opportunities

Looking ahead, Yueyang Forest & Paper expects structural changes in China’s paper industry—including stricter environmental standards and the gradual elimination of outdated capacity—to favor companies with integrated forestry, pulp, and paper operations.

The company’s strategy of forestry-pulp-paper integration, supported by Juntian Technology’s raw material capabilities, is expected to help improve supply stability and reduce exposure to raw material price volatility.

In addition, the company believes it is well positioned to benefit from China’s “dual-carbon” strategy, which encourages low-carbon industrial development. Yueyang Forest & Paper has already received national “Green Factory” certification, reflecting its progress in energy conservation, emission reduction, and clean production.

The gradual reopening of China’s CCER (China Certified Emission Reduction) market could also create new opportunities in forestry carbon sequestration, where the company has already begun building project experience and operational capacity.

Looking Toward the 15th Five-Year Plan

Entering 2026, Yueyang Forest & Paper says it is moving forward with a clearer strategic focus on eco-friendly pulp and paper manufacturing, sustainable forestry and agriculture, and emerging green industries.

By optimizing its asset structure in 2025 and strengthening its core operations, the company aims to improve profitability, expand into new materials and ecological businesses, and capitalize on industry recovery and policy support in the coming years.

With a healthier balance sheet and renewed strategic focus, Yueyang Forest & Paper believes it is well positioned to pursue sustainable growth as China enters the 15th Five-Year Plan period.