Yueyang Forest & Paper's Q1 profits plunge 68.4%

Yueyang Forest & Paper (SSE:600963) announced a 68.39% year-over-year decrease in net profit attributable to shareholders for Q1 2025, falling to CNY 46.92 million, compared to CNY 148.44 million in the same period last year. Revenues decreased by 16.44% year-over-year, reaching CNY 2.11 billion compared to CNY 2.52 billion. Operating cash flow experienced a significant negative shift, decreasing CNY 343.99%, down to -CNY 536.81 million. Basic earnings per share also declined to CNY 0.03. The company attributes part of the profit decline to increased production capacity and related raw material procurement, as well as the previous year's one-time gain from the sale of a subsidiary. The company is undergoing an upgrade of its production capabilities that will lead to 450,000 tons of new capacity by the end of the year.