New Risk • May 23
New major risk - Dividend sustainability The dividend is not well covered by earnings and cash flows. Payout ratio: 108% The company is paying a dividend despite having no free cash flows. Dividend yield: 0.6% This is considered a major risk. Companies that pay out too much of their earnings and cash flows are at risk of having to reduce or cut their dividend in future. If earnings or cash flows stagnate or fall, then there may not be enough to maintain the same dividend. Or in extreme cases, companies may opt to dig into capital reserves or take on debt to maintain the dividend. For dividend paying companies, any reduction in the dividend can significantly impact the share price. Currently, the following risks have been identified for the company: Major Risks Dividend is not well covered by earnings and cash flows. Payout ratio: 108% Paying a dividend despite having no free cash flows. Earnings have declined by 21% per year over the past 5 years. Minor Risk Profit margins are more than 30% lower than last year (0.8% net profit margin). Reported Earnings • Apr 28
Full year 2025 earnings released: EPS: CN¥0.15 (vs CN¥0.47 in FY 2024) Full year 2025 results: EPS: CN¥0.15 (down from CN¥0.47 in FY 2024). Revenue: CN¥2.79b (up 18% from FY 2024). Net income: CN¥61.2m (down 68% from FY 2024). Profit margin: 2.2% (down from 8.2% in FY 2024). Over the last 3 years on average, earnings per share has fallen by 3% per year but the company’s share price has increased by 8% per year, which means it is well ahead of earnings. Announcement • Apr 28
Forest Packaging Group Co.,Ltd., Annual General Meeting, May 18, 2026 Forest Packaging Group Co.,Ltd., Annual General Meeting, May 18, 2026, at 13:30 China Standard Time. Location: The Company's Meeting Room, Wenling, Zhejiang China 
