(Yicai) Nov. 21 -- Chenming Paper Holdings' debt crisis continues to widen, with the Chinese paper giant saying it has more than CNY1.8 billion (USD248.5 million) in overdue and CNY30 billion (USD4.1 billion) in short-term debt while also shutting most of its production bases.

Chenming Paper and its subsidiaries had accumulated the CNY1.8 billion overdue debt principal and interest as of Nov. 18, the Weifang-based firm announced on Nov. 19.

As of the end of September, Chenming Paper's monetary fund balance was only about CNY10 billion, with lots of it being restricted. Its total short-term borrowings and non-current liabilities due within one year had exceeded CNY32 billion.

Chenming Paper is in a debt crisis due to the continuous decline in operations. It reported a net loss of more than CNY800 million (USD110.4 million) in the three months ended Sept. 30, mainly due to a drop in demand and prices, while its cash flow shrank.

To reduce losses, Chenming Paper has limited or suspended production at its bases in Shandong, Jiangxi, Jilin, and other provinces since the start of this month, involving nearly 72 percent of its output. It has also sold several assets since last year.

Chenming Paper fell into the red with a net loss of CNY1.3 billion last year from a net profit of CNY317 million in 2022 and CNY2.1 billion in 2021, while its revenue dropped to CNY26.6 billion from CNY32 billion and CNY33 billion, respectively.

Shares of Chenming Paper [SHE: 000488] rose 3 percent to CNY3.47 (48 US cents) apiece as of 10.35 a.m. in Shenzhen today, after plunging 9.9 percent yesterday.

Editor: Martin Kadiev