Tens of millions in debt: another packaging factory enters bankruptcy liquidation

On March 16, Guangdong Zhenghong Law Firm accepted the designation of the Zhongshan First People's Court to serve as the bankruptcy administrator of Zhongshan Lianming Packaging & Printing Co., Ltd., responsible for its bankruptcy liquidation work.

Public information shows 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 sales of paper packaging products. However, in recent years, affected by the decline in industry prosperity and intensifying market competition, the company's operations have continued to deteriorate, and it has defaulted on payments owed to a number of packaging enterprises.

On January 23 this year, the Zhongshan First People's Court, based on applications from several 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. At this point, the company officially entered the bankruptcy liquidation stage.

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

In addition, the Zhongshan First People's Court has 1 litigation case in which Zhongshan Lianming Packaging & Printing Co., Ltd. is the defendant and which has not yet entered the enforcement procedure, and 3 similar cases in other courts. This also means that the total liabilities of Zhongshan Lianming Packaging & Printing Co., Ltd. have not been fully determined and may further increase.

Because the company "cannot repay due debts, its assets are insufficient to repay all debts, or it is obviously lacking in solvency", the Zhongshan First People's Court ultimately ruled to accept the bankruptcy application against Zhongshan Lianming Packaging & Printing Co., Ltd. At present, the related creditor claim declaration work is being carried out in an orderly manner.

The fall of Zhongshan Lianming Packaging & Printing Co., Ltd. is not an isolated case in the industry. Data show that in 2025, the paper making and paper products industry achieved total profits of 44.3 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, several packaging enterprises entered bankruptcy proceedings last year.

Against the backdrop of low industry transparency and fierce homogenized competition, a rise in raw material prices, a large bad debt, or even the sudden collapse of a downstream customer can become the last straw that breaks the camel's back. Moreover, problems such as difficulty in market development, low customer stickiness and slow customer payment collection make things worse, leaving enterprises able to do nothing but watch their debt snowball grow ever larger.

Caught between overcapacity and industry reshuffling, the survival space of small and medium-sized packaging enterprises is being compressed to the limit. Where exactly should they go in the future? This is not only a difficult problem facing business owners, but also a question worthy of deep thought by the entire industry.

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