The announcement shows that the main reason for the pre-estimated loss of Minfeng Special Paper is the impact of its main business. Specifically, the PM20 and PM22 paper machines of Minfeng Special Paper stopped operation in late May and late August of 2024, and the two paper machines did not meet the production target in 2025. At the same time, the company's Nanhu factory area stopped production in full at the end of June, and the capacity of the first and second phase projects of the Haiyan factory area is still in the process of increasing, resulting in a decrease in the company's overall production and sales volume, leading to a decrease in operating income and operating profit this period.
In addition, the fierce market competition for the company's main products in 2025 led to a decrease in the selling price of the company's main products, which also had a certain adverse impact on the company's annual performance.
