Nine Dragons renews connected transactions, triggers independent review

Nine Dragons Paper Holdings ( (HK:2689) ) just unveiled an announcement.

Nine Dragons Paper Holdings has renewed its suite of continuing connected transaction agreements originally entered into in 2023, ahead of their expiry on 30 June 2026. The renewed arrangements cover purchases and supplies of packaging materials, packaging paper, chemicals, recovered paper, pulp products and woodchips with entities controlled by or associated with senior members of the founding Cheung and Zhang families.

Under Hong Kong listing rules, the packaging materials purchase and packaging paper supply deals remain subject to reporting, annual review and announcement requirements but are exempt from independent shareholders’ approval. However, higher-value chemical procurement and recovered paper and pulp supply agreements require independent shareholders’ approval, prompting the formation of an independent board committee and the appointment of an independent financial adviser to assess the terms and safeguard minority investor interests.

The most recent analyst rating on (HK:2689) stock is a Hold with a HK$8.80 price target. To see the full list of analyst forecasts on Nine Dragons Paper Holdings stock, see the HK:2689 Stock Forecast page.

More about Nine Dragons Paper Holdings

Nine Dragons Paper Holdings is a Hong Kong-listed paper manufacturer, operating in the packaging materials sector with a focus on products such as packaging paper, recovered paper and pulp-based materials. The group’s operations span various upstream and downstream paper-related supplies, positioning it as a major player in the regional packaging and paper supply chain.

YTD Price Performance: 3.55%

Average Trading Volume: 11,852,429

Technical Sentiment Signal: Buy

Current Market Cap: HK$28.72B

For a thorough assessment of 2689 stock, go to TipRanks’ Stock Analysis page.