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Nine Dragons Paper Reports 225% Surge in Net Profit for 1H FY2026 as Sales Volume Hits Record High

PAPER INDUSTRY NEWS

Jino John

2/26/20261 min read

Hong Kong, 25 February 2026 – Nine Dragons Paper (Holdings) Limited today announced its unaudited interim results for the six months ended 31 December 2025, delivering record-breaking sales volume and a threefold increase in profitability as its integrated pulp-and-paper strategy entered its harvest phase.

Financial Highlights

For the first half of FY2026, the Group reported:

  • Sales Volume: 12.4 million tonnes, up 8.3% year-on-year (third consecutive comparable period record high)

  • Revenue: RMB 37.22 billion, up 11.2% year-on-year

  • Gross Profit: RMB 5.35 billion, up 67.4% year-on-year

  • Net Profit: RMB 2.21 billion, up 225.1% year-on-year

  • Profit Attributable to Equity Holders: RMB 1.97 billion, up 318.8% year-on-year

The strong performance was driven by both volume growth and a 2.7% increase in average selling price despite volatility in raw material costs.

Profitability Significantly Outperformed Industry

The Group demonstrated strong margin expansion supported by:

  • Integrated pulp and paper production strategy

  • Optimized product mix with higher proportion of high-end paper

  • Lean operational management and cost control

  • Technological innovation and AI-enabled production optimization

Gross profit increased sharply by 67.4%, while net profit surged 225.1%, reflecting the strategic payoff from raw material integration and improved operational efficiency .

Financial Stability & Risk Management

Nine Dragons Paper maintained prudent financial discipline during the period:

  • Strengthened working capital management

  • Controlled exchange rate risks

  • Enhanced capital and compliance controls

No dividend declaration, acquisition, merger, restructuring, or layoff announcements were disclosed in the interim results .

Outlook

Management expects improving industry conditions in the second half of FY2026, supported by:

  • Domestic demand stimulus policies

  • “Replacing plastic with paper” environmental trend

  • Continued cost optimization and product differentiation strategy

The Group remains focused on strengthening profitability resilience and enhancing shareholder returns.