Zhejiang Great Shengda Packaging Co., Ltd. – Recent Developments
Zhejiang Great Shengda Packaging Co., Ltd. (stock code 603687), listed on the Shanghai Stock Exchange, has reported a series of corporate actions and financial results in the first quarter of 2026. The company’s market‑capitalisation stands at approximately 10.8 billion CNY, with a price‑earnings ratio of 41.56. The share price closed at 18.59 CNY on 21 April 2026, having peaked at 20.80 CNY five days earlier and fallen to a 52‑week low of 6.87 CNY in April 2025.
1. Change of Accounting Policy
On 21 April 2026, Zhejiang Great Shengda announced that its board had approved a change in accounting policy in accordance with a revision issued by the Ministry of Finance on 8 July 2025. The adjustment concerns the treatment of standardized warehouse receipt contracts that the company enters into on futures exchanges. Under the new guidance, such contracts are classified as financial instruments. Consequently:
- Sales revenue from short‑term disposal of standardized warehouse receipts will no longer be recognised; instead, the difference between the contract price and the book value of the sold receipt will be recorded as investment income.
- Unsold standardized warehouse receipts at year‑end will be reported as other current assets.
- The company may, at initial recognition, elect to value the receipts at fair value with changes incorporated into the profit or loss, if this reduces accounting mismatches.
The board has stated that the policy change will not materially affect the company’s financial position, operating results, or cash flows, nor will it harm the interests of shareholders.
2. Quarterly Performance
In the quarter ended 31 December 2025, Zhejiang Great Shengda posted:
| Metric | 2025 | 2024 | % Change |
|---|---|---|---|
| Net loss per share | –0.03 CNY | +0.04 CNY | – 0.07 CNY |
| Revenue | 617.0 million CNY | 615.4 million CNY | +0.25 % |
| Annual net profit per share | +0.14 CNY | +0.19 CNY | –0.05 CNY |
| Annual revenue | 2.20 billion CNY | 2.11 billion CNY | +3.90 % |
The company’s quarterly loss per share, while smaller than the profit recorded in the same period last year, reflects a modest decline in profitability. The overall revenue increase of 0.25 % in the quarter and a 3.9 % rise in annual sales underscore steady demand for packaging solutions, though the decline in profit margin indicates pressure on earnings.
3. Dividend Proposal
The board also presented a dividend plan for the fiscal year 2025, as disclosed on 21 April 2026. Key points of the proposal include:
- Cash dividend of 0.4244 CNY per 10 shares (inclusive of tax).
- The dividend will be calculated on the total issued capital at the dividend‑record date, after subtracting shares held in the company’s share‑repurchase account.
- As of 31 March 2026, the company’s issued capital was 550,031,864 shares, of which 4,845,900 were in the repurchase account. This leaves 545,185,964 shares eligible for the dividend.
- The total cash dividend amount is estimated at 23,137,692.31 CNY (tax‑included).
The proposal has not triggered any risk warnings under the Shanghai Stock Exchange listing rules and is subject to final approval at the forthcoming shareholder meeting.
4. Governance and Audit Matters
No significant changes to the company’s board composition were reported. However, the company reaffirmed its commitment to sound corporate governance by maintaining the same audit engagement with Lixin Accounting Firm (Special General Partnership), which also serves other listed companies on the Shanghai Stock Exchange.
Summary
Zhejiang Great Shengda Packaging Co., Ltd. continues to navigate the evolving regulatory landscape through timely adjustments to its accounting practices while sustaining modest revenue growth. The recent quarterly results illustrate a slight decline in profitability, but the company’s dividend strategy reflects confidence in its cash‑generating ability. As the market watches the company’s performance and governance decisions, the 2026 trading session will likely reflect both the underlying business fundamentals and the broader economic environment impacting the packaging sector.
