ND PAPER (02689) saw its share price rebound nearly 5% during Hong Kong trading, last up 4.86% at HK$6.905, with turnover reaching HK$230 million.

The surge follows the company's August 20 announcement projecting a net profit of approximately RMB 3.9 billion to RMB 4.1 billion for the fiscal year ending June 30, 2026, representing a 77.1% to 86.2% increase from the RMB 2.2017 billion recorded in the prior fiscal year ending June 30, 2025.

ND PAPER confirmed it fully redeemed its outstanding perpetual preferred capital securities on August 11, 2026. The US$400 million securities have been redeemed, cancelled, and delisted from the Singapore Exchange.

According to a research note from China Securities, the completion of this buyback and cancellation is expected to significantly reduce the company's future financing costs, saving approximately RMB 300 million in annual interest expenses. Additionally, benefiting from the appreciation of the Chinese yuan, this buyback is projected to generate a one-time gain of around RMB 200 million.

The perpetual bond redemption is also poised to optimize the company's capital structure. As of December 31, 2025, ND PAPER's debt-to-asset ratio stood at 64.7%. With moderating capital expenditures and improving profitability ahead, the company is expected to achieve positive free cash flow, which could enable enhanced dividend distributions and improved shareholder returns.