ND Paper (Nine Dragons Paper (Holdings) Ltd.) has issued a circular calling a Special General Meeting (SGM) on 21 July 2026 to renew two sets of continuing connected transactions covering key production inputs through 30 June 2029.
Key Agreements and Annual Caps • Chemicals Purchase Agreement — ND Paper will source chemicals from Cheng Ming Group and Guangdong Chengming: • FY2027 cap: RMB 2.00 billion • FY2028 cap: RMB 2.50 billion • FY2029 cap: RMB 3.00 billion
• Recovered Paper, Pulp Products & Woodchips Agreement — supplies from America Chung Nam (ACN), Tianjin ACN and Hainan ACN: • FY2027 cap: RMB 15.00 billion • FY2028 cap: RMB 20.00 billion • FY2029 cap: RMB 30.00 billion
Rationale The group cites a 36.8 % jump in pulp capacity in FY2027 and higher oil-linked chemical costs following Middle-East geopolitical tensions as drivers for the enlarged caps. The agreements secure critical raw materials—chemicals, recovered paper, pulp and woodchips—needed for ND Paper’s expanding packaging-paper and pulp operations.
Pricing & Governance Prices will reference prevailing market rates: 1. Benchmark quotations from industry data platforms (e.g., SCI99 for paper/pulp, Forisk Wood Fiber Review for woodchips). 2. Competitive bids from at least three independent suppliers. 3. Historical transaction prices when market data are insufficient.
Monthly monitoring, quarterly board reporting, annual review by independent non-executive directors, and auditors’ confirmation are stipulated to ensure compliance with Listing Rules.
Related-Party Nature The counterparties are controlled by members of the Cheung, Liu and Zhang families, who collectively own 66.36 % of ND Paper. These shareholders and their associates (holding 63.77 % of issued shares via Best Result Holdings and personal stakes) will abstain from voting on the resolutions.
Independent Assessments An Independent Board Committee and VBG Capital, acting as independent financial adviser, both conclude the terms and caps are fair, reasonable and in the company’s and shareholders’ interests.
Next Step Shareholders eligible as of 15 July 2026 can vote at the SGM on 21 July 2026 in Hong Kong. Proxies must be lodged 48 hours before the meeting.