Nine Dragons Paper (Holdings) Limited is the largest packaging paperboard producer in Asia (including Japan) and one of the largest in the world in terms of production capacity. The Group primarily produces linerboard, including kraftlinerboard, testlinerboard and white top linerboard, high performance corrugating medium and coated duplex board. The Group also participates in unbleached kraft pulp production.

ND Paper's operations enable it to serve as a one-stop shop for a broad range of high quality containerboard products. Due to the size, width, versatility and number of our paper machines, we are able to provide a diversified product portfolio. Multiple production lines allow for flexible configuration offering a diversified product mix in an efficient manner. Our five principal products are available in a variety of basis weights, sizes and type specifications.

The Group has 25 packaging paperboard machines operating in China. These technically advanced paper machines were mainly imported from Europe, North America and Japan, with an aggregate annual design capacity of over 9.0 million tonnes including approximately 5.0 million tonnes of linerboard, over 3.0 million tonnes of high performance corrugating medium and approximately 1.0 million tonnes of coated duplex board. These paper machines are located in Dongguan, Guangdong Province, in the Pearl River Delta, in Taicang, Jiangsu Province, in the Yangtze River Delta Region, in Chongqing, regional hub for the Central-Western provinces, and in Tianjin, in the centre of the Bohai Economic Rim. The Group is also building a medium-sized paper production base in Quanzhou, Fujian Province and planning a new production base near Shenyang with a total annual design capacity of 0.65 million tonnes and 0.7 million tonnes respectively (Phase I). The Group is expected to complete the acquisition of 78.13% controlling equity interest of Hebei Yongxin. As such, the Group’s overall geographical coverage in the PRC market has taken shape.

In May 2008, the Group completed the handover of the operations and productions of high value specialty paper project and pulp project in Sichuan, expanding into the production of electric insulating paper and capacitor tissue paper.

In May 2008, ND Paper entered Vietnam by setting up a joint venture in Vietnam.

In addition to our paper machines, Nine Dragons operates supporting facilities that provide the Group with power, steam, water treatment and excellent logistical support. The integration of these facilities provides cost savings and increases the Group's operational flexibility and control, while enabling the Group to facilitate best practices in terms of environmental protection.

The Group aims to become the world's leading containerboard product manufacturer in capacity, profitability and efficiency. We are able to increase our operational productivity and efficiency through economies of scale, technologically advanced equipment, and integrated production facilities. Nine Dragons will continue to pursue sustainable business growth going forward. In order to achieve this goal, we will expand our leadership position in China through enhancing operating efficiencies, broadening our geographic coverage, increasing product offerings and attracting high caliber employees.