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Long Chen Paper Reports September Pre-tax Profit of NT$79 Million

Process Industries · Pulp & Paper · economic_daily · 2026-10-05

1909

Long Chen Paper posted a 25.3% year-on-year increase in September revenue, maintaining profitability despite higher logistics costs and seasonal demand challenges.

What Happened

Financial Performance: Long Chen Paper reported a September consolidated revenue of NT$4.79 billion, a 25.3% increase year-on-year, with a year-to-date revenue of NT$37.92 billion. The company achieved a pre-tax profit of NT$79 million for the month, reflecting a significant improvement compared to the same period last year.

Cost Pressures: The company's core business faced short-term margin compression in September due to extreme weather conditions that disrupted waste paper collection and logistics. However, non-operating income, bolstered by approximately NT$160 million in government subsidies in China, helped maintain overall profitability.

Market Dynamics: While end-user demand remains soft, major paper mills are balancing supply through maintenance shutdowns and capacity adjustments, leading to a gradual reduction in inventory. Improved manufacturing PMI in China and potential easing of US-China trade tariffs are expected to support packaging demand.

Outlook: Analysts anticipate a stronger performance in the fourth quarter as traditional peak season demand from e-commerce festivals and holiday stocking kicks in. Long Chen plans to focus on product mix optimization and cost management to drive sustained operational improvements.

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