Nine Dragons Paper profit alert: interim profit expected to surge up to 2.3 times to 2.25bn yuan

Nine Dragons Paper (2689) said on Wednesday that it expects profit for the six months ended December 31, 2025, to surge 216 to 231 percent to between 2.15 billion yuan (HK$2.41 billion) and 2.25 billion yuan.

The company's shares closed on the same day at HK$7.46, up 2.8 percent, with a turnover of HK$61.31 million.

The company said the strong profit growth was mainly attributable to higher product sales volumes and selling prices, as well as lower raw material costs, which led to a significant increase in gross profit.

In June 2024, Nine Dragons Paper issued US$400 million (HK$3.12 billion) of perpetual capital securities. Profit attributable to holders of the securities amounted to about 200 million yuan during the period.

As a result, profit attributable to equity shareholders is expected to reach 1.95 billion yuan to 2.05 billion yuan, representing a year-on-year increase of 315.2 percent to 336.5 percent.

Cynthia ZHONG