Nine Dragons Paper Accelerates Expansion as Integrated Pulp & Paper Capacity Approaches 10.7 Million Tonnes

Hong Kong, 25 February 2026 – Nine Dragons Paper (Holdings) Limited announced significant progress in its integrated pulp and paper expansion strategy, reinforcing its competitive moat and long-term profitability foundation.

Integrated Raw Material Capacity Expansion

During the reporting period:

• Annual design production capacity of 5.4 million tonnes of wood pulp has commenced production.

• The Group has largely completed expansion plans for core raw materials.

Upon full operation of all new projects, total fiber raw material design capacity is expected to reach:

• 10.7 million tonnes per annum, including:

  • 7.9 million tonnes of wood pulp

  • 0.7 million tonnes of recycled pulp

  • 2.1 million tonnes of wood fibre

This significantly reduces exposure to external pulp price volatility and strengthens cost competitiveness.

Expansion at Key Production Bases

The Group is expanding high-end raw material capacity in mature production bases including:

• Tianjin

• Chongqing

• Dongguan

Meanwhile, new production bases such as Beihai are accelerating capacity ramp-up to maximize operational efficiency and profitability .

High-End Product Capacity Additions

To optimize its product mix and enhance margins, the Group added:

• 1.2 million tonnes of bleached folding boxboard capacity (Hubei base)

• 0.6 million tonnes of printing and writing paper capacity (Beihai base)

The expansion increases the proportion of high-end kraftliner and differentiated paper products, strengthening Nine Dragons Paper’s positioning in premium market segments.

Strategic Impact

The integrated pulp-paper model enables:

• Vertical supply chain control

• Cost stability

• Enhanced product quality

• Greater operational flexibility

• Improved profitability resilience

With expansion largely completed, the Group is entering a new stage of scale-driven efficiency and strategic value realization.