Bohui Paper plans major expansion, forecasts 2026 transactions

Shandong Bohui Paper Industrial announced its 2026 related party transaction forecast, totaling 1,022.432m yuan, up from 916.613m yuan in 2025. This increase is driven by higher production, rising chemical input costs, increased raw material purchases, and growing demand for industrial wastewater treatment services. The company also plans a major chemical pulp expansion, investing 170.066m yuan to boost capacity from 95,000 tons to 320,000 tons annually. This project, which has secured government approval, aims to enhance raw material self-sufficiency and reduce production costs, with an expected return on investment of 9.63%.

In addition, Bohui Paper outlined its 2026 derivatives trading strategy, focusing on hedging risks associated with paper pulp, offset printing paper, and caustic soda. The company will allocate up to 15m yuan for transaction margins, with a maximum daily contract value of 150m yuan. Concurrently, Bohui Paper announced substantial guarantees for its wholly-owned subsidiaries, including Jiangsu Bohui Paper, Zibo Dahua Paper, Zibo Huahui Paper, and Hong Kong Bohua Feng Holdings International, totaling 11.278bn yuan. The guarantees cover various financial needs and reflect the company's commitment to supporting its subsidiaries' operational stability and expansion.

All these proposals are subject to shareholder approval at the upcoming 2025 Third Extraordinary General Meeting on December 19, 2025. Related party shareholders will abstain from voting on the relevant resolutions.