Changes in Hong Kong stocks | Nine Dragons Paper (02689) rebounded by nearly 5%, and annual profit pre-increased by no less than 77.1%. The completion of repurchases and cancellations will drastically reduce subsequent financing costs

The Zhitong Finance App learned that Nine Dragons Paper (02689) rebounded by nearly 5%. As of press release, it had risen 4.86% to HK$6.905, with a turnover of HK$230 million.

According to the news, on August 20, Nine Dragons Paper announced that the Group is expected to make a profit of about RMB 3.9 billion to RMB 4.1 billion as of June 30, 2026 (this year), an increase of 77.1% to 86.2% over RMB 2,201.7 billion for the year ended June 30, 2025 (last year). According to the announcement, Nine Dragons Paper redeemed all of its unexpired priority perpetual capital securities on August 11, 2026. The US$400 million preferred perpetual capital securities have been redeemed, cancelled, and delisted from the Singapore Stock Exchange Limited.

CITIC Construction Investment released a research report stating that it is expected that the completion of the repurchase and cancellation of Nine Dragons Paper will drastically reduce the financing costs of subsequent companies (according to estimates, it can save nearly 300 million yuan in interest per year). In addition, benefiting from the appreciation of the RMB, this repurchase can generate a one-time income of about 200 million yuan. Repurchasing perpetual bonds will also help optimize the company's capital structure. As of December 31, 2025, the company's balance ratio was 64.7%. As the company's capital expenditure slows down and profits increase in the future, the company is expected to achieve positive free cash flow, strengthen dividends, and enhance shareholder returns.