ND PAPER (02689) has issued a positive profit alert, projecting a net profit between RMB 3.9 billion and RMB 4.1 billion for the fiscal year ending June 30, 2026.

This anticipated result marks a substantial increase of 77.1% to 86.2% compared to the RMB 2.2017 billion profit recorded in the previous fiscal year ending June 30, 2025.

The company attributes the robust earnings growth primarily to higher sales volumes. Additionally, the pace and scale of product price increases have significantly outpaced the rise in raw material costs, which has consequently bolstered gross margins.

In a related development, the company issued USD 400 million in perpetual capital securities back in June 2024. For the current fiscal year, the profit attributable to holders of these perpetual capital securities is approximately RMB 375.6 million.

Consequently, ND PAPER expects the profit attributable to its equity shareholders for the year to be in the range of RMB 3.4 billion to RMB 3.6 billion. This represents an increase of 92.4% to 103.7% from the RMB 1.7671 billion reported in the previous year.

The company has fully redeemed its outstanding perpetual capital securities on August 11, 2026. These USD 400 million securities have been redeemed, cancelled, and subsequently delisted from the Singapore Exchange Securities Trading Limited.