Zhengye International Warns of Sharp Profit Decline on Weaker Packaging Demand

Zhengye International Holdings Co., Ltd. ( (HK:3363) ) has shared an update.

Zhengye International Holdings has warned that profit attributable to shareholders for 2025 is expected to fall sharply to about RMB12 million–16 million from RMB36.4 million a year earlier. The drop underscores the pressures on its paper-based packaging segment, which relies heavily on orders from home appliance makers and has faced both weaker demand and higher depreciation.

The company said that despite lower base paper costs, packaging orders from existing home appliance customers declined amid uncertainties over trade policies and tariffs. Expansion into new packaging business lines also required additional equipment investment, driving up depreciation and eroding margins, and the improved performance of its paper manufacturing business was not enough to offset the packaging slowdown.

Management stressed that the figures are based on unaudited management accounts and could change once the full-year results are finalized. The group plans to release its audited annual results by the end of March 2026 and urged shareholders and potential investors to exercise caution when trading its shares in light of the expected earnings decline.

The most recent analyst rating on (HK:3363) stock is a Hold with a HK$0.33 price target. To see the full list of analyst forecasts on Zhengye International Holdings Co., Ltd. stock, see the HK:3363 Stock Forecast page.

More about Zhengye International Holdings Co., Ltd.

Zhengye International Holdings Company Limited is a Bermuda-incorporated company listed in Hong Kong that operates paper-based packaging and paper manufacturing businesses. Its core operations include supplying packaging, particularly to home appliance customers, and manufacturing paper, with profitability sensitive to raw material costs, capital investment, and trade policy conditions.

Average Trading Volume: 108,875

Technical Sentiment Signal: Sell

Current Market Cap: HK$180M

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