Fujian Qingshan Paper to restructure governance, reduce capital amid profit slump

Fujian Qingshan Paper Industry Co., Ltd. is undertaking significant governance changes, including the abolition of its board of supervisors, effective July 1, 2024, with the board's audit committee assuming its statutory functions. This move aligns with recent amendments to the Company Law.

Concurrently, the company's registered capital is being reduced from RMB 2,253,255,047 to RMB 2,240,826,747 following the repurchase and cancellation of restricted shares. These changes necessitate revisions to the Articles of Association and various governance policies, which will be submitted for shareholder approval at an extraordinary general meeting on November 12, 2025.

In addition to governance restructuring, the company approved a RMB 63,045,700 investment in a wastewater treatment upgrade project. It also intends to use up to RMB 1.4 bn of its own idle funds and up to RMB 600 m of idle raised funds for low-risk cash management to optimize asset utilization and increase returns.

The company's third-quarter report indicates a decrease in total profit by 69.34% and net profit attributable to shareholders by 71.82% for the current period, largely due to reduced sales volumes and product gross margins.