Chenming's large-scale production shutdown has resulted in the freezing of 65 bank accounts

On November 19th, Chenming Paper announced that since the third quarter, the prices of the company's main products, especially white cardboard, have continued to decline, resulting in serious operating losses. In addition, some financial institutions have compressed the company's loan scale, leading to tight liquidity. In order to reduce losses, the company has implemented production restrictions and shutdowns on some production bases since November.

As of the disclosure date of this announcement, the company's Shouguang base has temporarily suspended production of one white cardboard production line, one cultural paper production line, one copperplate paper production line, one chemical pulp production line, one cultural paper production line, and one white cardboard production line, as well as the Jiangxi and Jilin bases. The production capacity of pulp and paper is 7.03 million tons, accounting for 71.7% of the total production capacity, affecting monthly pulp and paper production of about 580000 tons and paper sales of about 350000 tons. The company is making every effort to raise working capital, actively resuming work and production, and has not yet encountered the situation described in Article 9.8.1 of the Shenzhen Stock Exchange Listing Rules.

As of November 18, 2024, the cumulative overdue principal and interest amount of the company and its subsidiaries amounted to RMB 1.82 billion, accounting for 10.91% of the company's latest audited net assets. The company provides joint and several liability guarantee for the financing of its subsidiaries, with a corresponding overdue amount of RMB 574 million, accounting for approximately 3.44% of the company's latest audited net assets. As of November 18, 2024, the company and its subsidiaries have accumulated 65 frozen bank accounts, with a total frozen amount of RMB 64.837 million.