Over Ten Million Yuan in Debt: Another Packaging Plant Enters Bankruptcy Liquidation

On March 16, Guangdong Zhenghong Law Firm accepted the designation of the Zhongshan No. 1 People's Court to serve as the bankruptcy administrator of Zhongshan Lianming Packaging & Printing Co., Ltd. and to take charge of its bankruptcy liquidation.

Public records show that Zhongshan Lianming Packaging & Printing Co., Ltd. was established on June 7, 2006, with registered capital of 1.5 million yuan, mainly engaged in the production and sale of paper packaging products. However, in recent years, affected by a downturn in industry conditions and intensifying market competition, the company's operations continued to deteriorate, and it fell behind on payments owed to a number of packaging enterprises.

On January 23 this year, the Zhongshan No. 1 People's Court, based on applications from a number of well-known packaging enterprises in Zhongshan and Dongguan and a certain financial leasing company, ruled to accept the bankruptcy liquidation case of the debtor Zhongshan Lianming Packaging & Printing Co., Ltd. With that, the company formally entered the bankruptcy liquidation stage.

The court found that, as of December 30, 2025, there were 12 cases in which Zhongshan Lianming Packaging & Printing Co., Ltd. was the person subject to enforcement and which had been filed for enforcement but not yet fully executed, and 11 such cases filed with other courts, 23 in total, with a total enforcement amount of 10,012,915.61 yuan.

In addition, the Zhongshan No. 1 People's Court has 1 litigation case in which Zhongshan Lianming Packaging & Printing Co., Ltd. is the defendant and which has not yet entered enforcement proceedings, plus 3 similar cases in other courts. This also means that the company's total liabilities have not yet been fully determined and may increase further.

Because it "cannot pay off due debts, its assets are insufficient to pay off all its debts, or it clearly lacks the ability to pay", the Zhongshan No. 1 People's Court ultimately ruled to accept the bankruptcy application against Zhongshan Lianming Packaging & Printing Co., Ltd. At present, the related claims declaration work is being carried out in an orderly manner.

The collapse of Zhongshan Lianming Packaging & Printing Co., Ltd. is not an isolated case in the industry. Data show that in 2025, the papermaking and paper products industry achieved total profits of 44.30 billion yuan, down 13.6% year on year; the printing and reproduction of recording media industry achieved total profits of 31.24 billion yuan, down 6.6% year on year. In Zhongshan alone, a number of packaging enterprises entered bankruptcy proceedings last year.

Against a backdrop of low industry transparency and fierce homogeneous competition, a single round of raw material price increases, one large bad debt, or even the sudden collapse of a downstream customer can all become the last straw that breaks the camel's back. Problems such as difficulty in developing markets, low customer stickiness and slow customer payments make matters even worse, leaving companies able to do nothing but watch their debt snowball grow ever larger.

Caught between overcapacity and industry reshuffling, small and medium-sized packaging enterprises have seen their room to survive squeezed to the limit. Where should they go from here? This is not only a difficult problem facing business owners, but also a question worthy of deep reflection by the entire industry.

——This article is reprinted from China Packaging Network (pack.cn). Original link: http://news.pack.cn/show-379800.html