Zhongshan Lianming Packaging & Printing Enters Bankruptcy Liquidation Amid Industry Pressures

On March 16, Guangdong Zhenghong Law Firm was appointed by the First People's Court of Zhongshan City to serve as the bankruptcy administrator of Zhongshan Lianming Packaging and Printing Co., Ltd., and to be responsible for its bankruptcy liquidation.

　　Public records show that Zhongshan Lianming Packaging & Printing Co., Ltd. was established on June 7, 2006, with a registered capital of 1.5 million yuan, mainly engaged in the production and sales of paper packaging products. However, in recent years, affected by the decline in industry prosperity and intensified market competition, the company's operations have continued to deteriorate, resulting in overdue payments to many packaging companies.

　　On January 23 this year, the First People's Court of Zhongshan City, upon application by several well-known packaging companies in Zhongshan and Dongguan, as well as a financial leasing company, ruled to accept the bankruptcy liquidation case of the debtor, Zhongshan Lianming Packaging & Printing Co., Ltd. Thus, the company officially entered the bankruptcy liquidation stage.

　　The court found that as of December 30, 2025, there were 12 cases in which Zhongshan Lianming Packaging Printing Co., Ltd. was the defendant and had been filed for enforcement but had not yet been fully enforced. There were also 11 cases in which other courts had filed for enforcement but had not yet been fully enforced, totaling 23 cases with a total enforcement target of RMB 10,012,915.61.

　　In addition, there is one lawsuit filed by the First People's Court of Zhongshan City against Zhongshan Lianming Packaging & Printing Co., Ltd. that has not yet entered the enforcement proceedings, and three similar cases in other courts. This also means that the total liabilities of Zhongshan Lianming Packaging & Printing Co., Ltd. have not yet been fully determined and there is a possibility of further increases.

　　The First People's Court of Zhongshan City ultimately ruled to accept the bankruptcy application against Zhongshan Lianming Packaging and Printing Co., Ltd., citing its "inability to pay debts as they fall due, insufficient assets to pay all debts, or obvious lack of solvency." Currently, the relevant creditor claims filing process is proceeding in an orderly manner.

　　The collapse of Zhongshan Lianming Packaging & Printing Co., Ltd. is not an isolated case in the industry. Data shows that in 2025, the paper and paper products industry achieved a total profit of 44.3 billion yuan, a year-on-year decrease of 13.6%; the printing and recording media reproduction industry achieved a total profit of 31.24 billion yuan, a year-on-year decrease of 6.6%. In Zhongshan City alone, several packaging companies entered bankruptcy proceedings last year.

　　In an industry characterized by low transparency and fierce competition based on product homogeneity, a surge in raw material prices, a large bad debt, or even the sudden bankruptcy of a downstream customer can be the final straw that breaks the camel's back. Problems such as difficulty in market expansion, low customer loyalty, and slow customer payments further exacerbate the situation, leaving businesses helplessly watching their debt snowball.

　　Caught between overcapacity and industry reshuffling, the survival space for small and medium-sized packaging enterprises has been squeezed to the extreme. What will their future hold? This is not only a difficult problem for business owners, but also a question that the entire industry should ponder deeply.