2266Tons of tons, answering the “how big” but not three more difficult questions: why can you expand? How can new production be absorbed by markets? What will improve future ton paper profits and capital returns?

Four key figures:

Note: Production, design capacity and sales are of different statistical periods, calibres and cannot be added directly or replaced by one another.

One word for a dragon.

The Xiaolong is completing a competitive coordinates migration: from organizing global regenerative fibres, increasing the size of packaging paper to determining profitability by multifibre raw materials, pulp integration, product structure and capital efficiency.

CORE JUDGMENT

First, let's conclude that the Qing is turning scale into business results.

The most difficult to replicate is not a paper machine, a base or a piece of paper but six capabilities that are gnawing along the same value chain:

01 ..SCALE AS A NETWORK

First floor:2266Tonne's just the result. The reason is network synergy.

According to the company network and2025I'm not sure.2026The interim report revealed that the Chinese layout of Jilong is a good idea.10A paper base,8A packing base, with paper-making, sulpting and packaging assets in Viet Nam, Malaysia and the United States; the main base is also equipped with a combined thermal power production, warehousing and logistics system.

Such sizes are of real value and must be transformed three times: by converting centralized procurement into a cost advantage for raw materials, by transforming multi-base configurations into shorter client delivery radiuss, and by turning large equipment into stable quality and sustained high load operations.

2025Year7to12Month, the Group China market sales increase by the same amount60Tonnes, extra overseas market40Ten thousand tons, with a total sales volume of six months running for the third comparable period.2500For enterprises with tons of greenhouse gases, the sustainability of orders to absorb additional capacity is more important than nominal capacity per se.

02 • FIBER CONTROL

Second layer: Reconstructing raw materials is the main line of this transformation

The most typical early ability of the Xiaolong is to link overseas recovery of fibre resources to China’s industrial packaging needs, creating global purchasing and regenerative fibre tissue advantages. This capability has not disappeared as import reclamation policies, international logistics, and raw material price systems have changed, but the boundary between feedstock advantage has shifted from “access to low-cost waste paper” to “hold options among multiple fibres.”

The new answer from the Xialong is to install a combination of scrap paper, wood pulp, recycled slurry and wood fibres in the country.2025Year12At the end of the month, its fibre raw materials were designed to produce an annual energy contract820Ten thousand tons of wood.540Ten thousand tons, regenerative slurry.70Ten thousand tons, wood fibres.210Tons; this design capacity is expected to be achieved when the full project is fully delivered as disclosed1070The latter figure is a future design capability, not current production and does not equal the self-sufficiency of raw materials.

The value of this system is more than just a purchase-down. Sulp and high quality fibres raise the quality ceiling for high-end cattle, white card paper and cultural paper; regenerative fibres retain the recycling and cost base of industrial packaging paper; and multifibre combinations enable firms to adjust their formulations to paper properties, material price differentials and market cycles, thereby gaining greater scope for cost and product selection.

03 • PRODUCT MIX

Third floor: High end is not more paper, but a rewrite of profit structure

Packaging boards, by company, include cattle cardboard, high-strength cyborg paper, dusted white sheet paper and white cardboard.2025Year7to12Total monthly contribution89%The “remaining dominant” does not mean that the internal structure remains unchanged: white card paper sales have increased on a par over the same period.133.3%It's obviously faster than the cardboard.1.1%And the high-powered cyborg.2.4%I'm sorry.

This group of changes suggests that the thugs do not leave the wrapping paper, but add a new product and profit curve to the original size curve.2025Year12At the end of the month, the company had an annual capacity for white card and cultural paper design.300Ten thousand tons and continues to extend in the direction of high-end cattle cardboard, high-value special paper etc.

White card, food and consumer goods packaging paper relies more on fibre purity, surface strength, printing suitability, odour control, folding styles and customer certification than conventional industrial packaging paper.

04 • NEW INDUSTRIAL HUBS

Level 4: North Sea and North Lake are not two new factories, but two integration hubs

According to the company network, North Sea base is now being configured.325Tonne paper production and190Tens of tons of annual woodpowder capacity; Lake North base configuration approximation300Ten thousand tons of paper,195Ton of wood and21Two bases share the task of refuelling raw materials and expanding high-end paper.

The North Sea is of particular importance in terms of its strategic value. It is close to the port, can absorb raw materials such as ASEAN wood chips and connect markets in western China, ASEAN, and the Middle East through new roads on land and sea in the west.2026Year1The month ' s opening of the North Seaport wooden chips for collection and inspection means that the logistics chain between wood imports, port handling and paper production is further completed.

In terms of industrial systems, the value of both bases is not simply to add a few paper machines, but to organize fibre raw materials, sulpting, paper, public engineering, logistics and regional markets into new cost centres and growth centers. The success of large projects ultimately depends on coordinated delivery of the entire system, rather than on the completion of single production lines.

05 . OPERATING SYSTEM

Level 5: invisible barriers are the reproduction capacity of large systems

When an enterprise has only one base, the good factory director and the craft team can rely on experience to solve problems; when a business has more than 10 large production nodes, competitiveness must come from standardization, dataization and cross-base replication.

Companies disclose that they continue to promote the refinement of whole chains for targets, cross-base synergies, best practices sharing and technology empowerment. Digital tools are not barriers per se for companies with a volume like Qinglong; real barriers are uniform data calibres and unusual closed rings, turning slurry yields, paper machine efficiency, steam consumption, chemical consumption, quality complaints and stock turnover into comparable, accountable, replicable business moves.

2026Year7In January, North Sea and Guangxi University built a “college of the academic innovation studio” to organize research teams, pilot platforms, and results-transformation mechanisms around the real needs of companies. Public information has not yet revealed specific technical topics and outcomes, so it is more accurate to judge that this is a new organizational signal for strengthening production transformation capabilities than evidence of a breakthrough in a product.

06 .. CAPITAL EFFICIENCY

Sixth floor: scale costs, eventually tested with capital returns

The integration of paper and the construction of large bases require long-term, heavy asset inputs.2024I'm not sure.2025Capital expenditure for the fiscal year148.32Billion dollars; as at2025Year6Total liabilities as a percentage of total assets at end of month66.0%. As of2025Year12Late month, group borrowings734.67Total of billions of dollars in bank and cash balances, short-term bank deposits and restricted cash66.13Billion; unrecovered and uncommitted loan amount disclosed532.62Billion dollars. The latter should not be equated with a signed commitment.

The positive side is that the government has been able to provide a good opportunity for the people to be involved in this process.2025Year7to12Monthly Maori rate is estimated at the same time in the previous year9.5%Raise to14.4%, raise the contract4.8percentage points; operating profits increase on a year-on-year basis113.4%, the new paper project is beginning to contribute to performance. This is evidence of the strategy’s start-up, but not yet a full cycle confirmation. The next step will be whether the new productivity climb can be steadily converted into operating cash flows and whether raw materials, inventories and payable systems can remain efficient on a larger scale.

2026Year7Light, the Dragon completes the money4$ billion, face distribution rate14.00%Priority for a permanent cash buy-back offer on capital securities, with eventual acceptance3.995$ billion, or principal outstanding99.9%The company expresses its purpose as a profit-enhancing and capital architecture optimized. This can be understood as an active adjustment to high-cost capital, but single instrument buyback does not per se prove that total leverage has declined significantly.

2026 CHANGE SIGNALS

Six new clues, one strategic thread.

BIOTEN PACKAGING VIEW

BIOTENPackaging observation: Next high end station, paper functionality engineering

When the thugs move further into white card, fine paper and high-end consumer packaged original paper, their products are more directly exposed to the combined requirements of food, catering, beauty, medicine and consumer electronics: not only strength, weight and cost but also surface effects, barrier performance, smell control and migration risks, printing and production efficiency,food contactSafety and circular compliance.

It's worth noting, Dragon.2025I'm not sure.2026The product sections of the interim report are listed50I'm not sure.450mono-surfaced per square metre and kerneled permole paper, application overlayfood packagingThis indicates that the product boundaries of the group have been extended from original to functional paper-based materials; however, public information is not sufficient to determine specific barriers to material routes, scale of operations, certification scope and extent.recyclableShow.

This means that value increment will not occur only at the end of a paper machine, but will continue to be transported along coatings, surface treatment, printing, complexity, heat cover and terminal processing.

The above-mentioned industrial chain, based on changes in the structure of the open product of the Qilong, does not mean that the Xiangyun has chosen a specific material route or that the two are different.BIOTENPackagings have a product adoption, testing or cooperative relationship.

CONCLUSION

2266The result is a million tons.
The answer is scale-to-scale efficiency.

The Dragon Paper industry is really strong, not just2266It's a million tons, not just that.2540Ten thousand tons of designed capacity have been built into a system that has made huge asset organizations a material option, unit costs, product coverage, regional delivery and supply stability.

It is completing a second capacity re-engineering: the first is to build ahead with global renewable fibre tissue and packing paper size; the second is to enter high-end cattle, white cardboard, cultural paper and more high-value paper material markets based on wood pulp, recycled slurry and multifibre systems, and to test expansion in cash flow.

But the expansion of heavy assets must ultimately be subject to three tests:

If the three continue to be delivered, the T-Rone will move ahead from a tonnage lead to a system leader; if it is not, the mass will also magnify fixed costs, stocks, and capital pressures. The watershed between these two outcomes will not be many tons more than they are worth, but rather whether each additional ton of capacity will generate higher-quality returns.

NEXT ISSUE . Series pre-ensure

Next: Why is the Sunpaper industry strong? The answer is hidden in a fibre.

The China Paper Industry Sample Study does not provide simple business presentations and continuously dismantles the resources, costs, products, management and industry chain capabilities of head paper companies.