Report Industry Investment Rating - Not provided in the content Core Viewpoints - The pulp market is expected to fluctuate. The demand in the market remains weak and the supply - demand fundamentals have not changed significantly. The high - level pressure of port inventory persists. The pulp price will mainly be in a narrow - range consolidation. Attention should be paid to the changes in the purchasing willingness of downstream paper mills and the dynamics of foreign offers [4][5] Summary by Relevant Catalogs 1. Fundamental Data - **Futures Market**: The daily closing price of the pulp main contract was 5,224 yuan/ton, up 14 yuan from the previous day; the night - closing price was 5,196 yuan/ton, up 20 yuan. The trading volume was 259,553 lots, a decrease of 119,071 lots; the position of the 05 contract was 186,345 lots, a decrease of 10,462 lots; the warehouse receipt quantity was 186,562 tons, an increase of 3,000 tons; the net position of the top 20 members was - 32,280 lots, an increase of 764 lots [3] - **Spread Data**: The basis of Silver Star - futures main contract was - 24, a decrease of 64; the basis of Goldfish - futures main contract (non - standard) was - 624, a decrease of 14; the month - spread of SP05 - SP07 was - 46, an increase of 4 [3] - **Spot Market**: The domestic prices of coniferous pulp such as Beimu and Kalip were 5,450 yuan/ton, Moon was 5,150 yuan/ton, and Silver Star was 5,200 yuan/ton. The domestic prices of broad - leaf pulp such as Golden and Star were 4,600 yuan/ton. The domestic price of chemimechanical pulp (Yinghe) was 3,800 yuan/ton, and the domestic price of natural pulp (Venus) was 4,800 yuan/ton [3] 2. Industry News - The pulp futures market rose slightly yesterday, driving the spot price of coniferous pulp to rise slightly. However, the actual market trading was rather light. Downstream paper mills had low purchasing enthusiasm due to average profits, and some enterprises adopted a price - pressing strategy, with limited acceptance of high - priced raw materials. The trend of broad - leaf pulp was relatively stable [4][5]

Report Summary 1. Report Industry Investment Rating - No information provided 2. Core Viewpoints - No information provided 3. Key Points from the Report SP Main Contract Information - The closing price of the SP main contract on March 20, 2026, was 5164.00 [3] - The closing prices and related data from March 16 - 20, 2026, are presented, showing price fluctuations and percentage changes [3] Import Profit and Price Information - Import profit calculations for different pulp brands (Canadian Golden Lion, Canadian Lion, Chilean Silver Star) are provided, with values of 165.97, -605.31, and -419.82 respectively [4] - The exchange rate on the previous day was 6.88, and prices are calculated with a 13% VAT [4] Pulp Price Averages - National and Shandong regional average prices for different types of pulp (coniferous, broad - leaf, natural color, chemical mechanical) from March 16 - 20, 2026, are presented, with no changes during this period [4] Paper Index and Profit Margin Information - Index values for cultural paper (double - offset, double - copper), packaging paper (white card), and living paper from March 17 - 20, 2026, are presented, with no changes in most cases [4] - Profit margin estimates for different types of paper from March 17 - 20, 2026, are provided, with a -0.5210 change in the living paper profit margin [4] Pulp Price Spreads - Price spreads between different types of pulp (coniferous - broadleaf, coniferous - natural color, coniferous - chemical mechanical, coniferous - waste paper) from March 16 - 20, 2026, are presented [4]

Group 1: SP Main Contract Information - The closing price of the SP main contract on March 17, 2026, was 5088.00 [3] - The corresponding US dollar price was 644.73, with a daily decline of 2.75229% [3] - The basis of Shandong Yinxing was 52, and that of Jiangsu, Zhejiang and Shanghai Yinxing was 87 [3] Group 2: Import Profit Information - The import profit of Canadian Golden Lion was 157.15, while that of Canadian Lion was -463.56 [4] - The import profit of Chilean Yinxing was -457.85 [4] Group 3: Pulp Price Information - From March 11 to March 17, 2026, the national average prices of softwood pulp, hardwood pulp, natural pulp, and chemimechanical pulp remained unchanged [5] - The average prices in Shandong area also remained unchanged during the same period [5] Group 4: Paper Index and Profit Margin Information - From March 12 to March 17, 2026, the cultural paper, packaging paper, and living paper indices remained unchanged [5] - The profit margins of double - offset paper, double - copper paper, white card paper, and living paper changed on March 17 compared to previous days, with increases of 0.8920, 0.8250, 0.6969, and 0.9702 respectively [5] Group 5: Pulp Price Difference Information - On March 17, 2026, the price difference between softwood and hardwood pulp was 615.00, the difference between softwood and natural pulp was -260, the difference between softwood and chemimechanical pulp was 1330, and the difference between softwood pulp and waste paper was 3564 [5]

Report Summary 1. Report Industry Investment Rating - The trend strength of pulp is 1, indicating a "偏强" (relatively strong) outlook. The range of trend strength is from -2 (most bearish) to 2 (most bullish) [3]. 2. Core Viewpoint - The pulp market is in a state of shock and is expected to be relatively strong. The current supply is characterized by a game between cost support and inventory pressure, while demand is in a slow post - holiday recovery with tepid procurement sentiment [1][4][5]. 3. Summary by Relevant Catalogs 3.1 Fundamental Data - **Futures Market**: The day - session closing price of pulp's main contract decreased by 66 yuan/ton to 5,246 yuan/ton, and the night - session closing price decreased by 32 yuan/ton to 5,240 yuan/ton. The trading volume decreased by 5,973 hands to 172,356 hands, while the open interest of the 05 contract increased by 10,364 hands to 253,941 hands. The warehouse receipt quantity increased by 474 tons to 153,011 tons, and the net position of the top 20 members decreased by 3,483 hands to - 32,812 hands [3]. - **Spread Data**: The basis of "Yinxing - futures main contract" decreased by 34, and the basis of "Jinyu - futures main contract (non - standard)" increased by 66. The month - spread of SP03 - SP05 decreased by 8 [3]. - **Spot Market**: The domestic prices of various pulp varieties are as follows: coniferous pulp (Beimu and Kailipu at 5,500 yuan/ton, Yueguang at 5,200 yuan/ton, Yinxing at 5,250 yuan/ton, Ezhen at 5,100 yuan/ton), broad - leaf pulp (Jinyu and Mingxing at 4,600 yuan/ton, etc.), chemimechanical pulp (Kunhe at 3,800 yuan/ton), and natural pulp (Jinxing at 4,850 yuan/ton). The international price of Yinxing is 710 US dollars/ton, Mingxing is 600 US dollars/ton, and Jinxing is 620 US dollars/ton [3]. 3.2 Industry News - **Supply**: The cost of traders has increased due to the rise in the FOB price of broad - leaf pulp, reducing their willingness to sell at low prices. After the holiday, port inventories have increased by 206,000 tons compared to before the holiday, but the absolute increase is lower than last year, alleviating concerns about high - inventory pressure [4]. - **Demand**: The demand is in a slow post - holiday recovery. The operating rate of downstream paper enterprises has increased, but paper mills are mostly in a wait - and - see mode, with low enthusiasm for purchasing. The expected post - holiday concentrated restocking has not occurred. The pulp market will follow market sentiment and ignore fundamental impacts due to the impact of the US - Iran conflict on the shipping market [5].

Group 1: Report Information - Report title: Pulp Morning Report [2] - Research team: Energy and Chemicals Team of the Research Center [2] - Date: March 2, 2026 [2] Group 2: SP Main Contract Closing Price - Closing price on February 27, 2026: 5246.00 [3] - Closing prices from February 13 to February 27, 2026: 5260.00, 5340.00, 5348.00, 5312.00, 5246.00 respectively [3] - Dollar - converted prices from February 13 to February 27, 2026: 664.54, 677.38, 680.16, 678.24, 668.12 respectively [3] - Daily price changes from February 13 to February 27, 2026: 0.42001%, 1.52091%, 0.14981%, - 0.67315%, - 1.24247% respectively [3] - Shandong Yinxing basis from February 13 to February 27, 2026: 50, 25, 27, 28, 79 respectively [3] - Jiangsu - Zhejiang - Shanghai Yinxing basis from February 13 to February 27, 2026: 50, 25, 17, 43, 79 respectively [3] Group 3: Import Profit and Price Information - Import profit calculation based on 13% VAT [4] - Import profit for Canadian Golden Lion, Lion and Chilean Yinxing: 183.60, - 403.81, - 171.26 respectively [4] - Port dollar prices for Canadian Golden Lion, Lion and Chilean Yinxing: 780, 730, 700 respectively [4] - Shandong region RMB prices for Canadian Golden Lion, Lion and Chilean Yinxing: 6300, 5310, 5325 respectively [4] Group 4: National and Regional Average Prices - From February 13 to February 27, 2026, national and Shandong regional average prices of coniferous pulp, broad - leaf pulp, natural pulp and chemimechanical pulp remained unchanged [4] - From February 13 to February 27, 2026, prices of cultural paper (double - offset index, double - copper index), packaging paper (white - card index) and living paper (living index) remained unchanged [4] Group 5: Profit Margin Estimates - Double - offset profit margin estimates from February 24 to February 27, 2026: - 2.9070%, - 2.9412%, - 2.8214%, - 2.8214% respectively [4] - Double - copper profit margin estimates from February 24 to February 27, 2026: 7.3250%, 7.2917%, 7.4083%, 7.4083% respectively [4] - White - card profit margin estimates from February 24 to February 27, 2026: - 8.2333%, - 8.2564%, - 8.1755%, - 8.1755% respectively [4] - Living paper profit margin estimates from February 24 to February 27, 2026: 6.7434%, 6.6356%, 6.6895%, 6.9949% respectively, with a change of 0.3054 on February 27 compared to February 24 [4] Group 6: Price Spreads - Coniferous - broadleaf spreads from February 13 to February 27, 2026: 755, 700, 710, 675, 675 respectively [4] - Coniferous - natural spreads from February 13 to February 27, 2026: - 90, - 35, - 25, - 60, - 75 respectively [4] - Coniferous - chemimechanical spreads from February 13 to February 27, 2026: 1435, 1490, 1500, 1465, 1450 respectively [4] - Coniferous - wastepaper spreads from February 13 to February 27, 2026: 3734, 3789, 3799, 3764, 3749 respectively [4]

Key Points Summary of 玖龙纸业 FY26H1 Conference Call Company Overview - The company discussed its production and sales performance for the first half of FY26, with a focus on the paper manufacturing industry. Core Insights and Arguments - **Production Capacity**: The mid-term production capacity is reported at 2.3 million tons, with an expected increase to 2.5 million tons in FY26H2, which includes an additional 200,000 tons of chemical mechanical pulp [1] - **Cost Advantage**: The self-produced chemical pulp is cheaper by 1,500 RMB per ton compared to imported pulp, while chemical mechanical pulp is cheaper by 500 RMB per ton [1] - **Sales Growth**: The mid-term sales volume is projected at 12.4 million tons, an increase of 1 million tons year-on-year. The total annual sales volume is expected to reach 24.4 million tons, driven by growth in cultural paper from 520,000 tons to 900,000 tons and white card from 400,000 tons to 900,000 tons [1] - **New Production Line**: The completion of a new paper production line is noted, along with a new pulp planning in Dongguan aimed at reducing transportation costs by 100 RMB [2] - **Capital Expenditure**: The total capital expenditure for the year is projected at 12.5 billion RMB, with expectations to decrease to 7 billion RMB in FY27 as the initial investments in pulp production lines conclude [2] - **Wood Chip Supply**: The company has begun to establish a supply of wood chips, which is expected to materialize within 1-2 years [2] - **Debt Management**: The company plans to redeem perpetual bonds using bank loans and its own funds before the June 2027 maturity date. It anticipates resuming dividend payments by the end of FY26, with the payout ratio dependent on debt repayment progress [2] Other Important Insights - The company is strategically positioning itself to enhance production efficiency and cost-effectiveness through self-sourcing of raw materials and optimizing logistics [1][2] - The anticipated growth in specific product lines indicates a positive outlook for the company's market position and revenue generation capabilities in the upcoming fiscal periods [1]

Group 1: Report Industry Investment Rating - No information provided Group 2: Core View of the Report - This week, the imported pulp market showed a trend of first stabilizing and then rising, with improved sentiment. The spot含税 average price of mainstream brands of coniferous pulp was 5268 yuan/ton, up 0.8% from the previous period; the spot含税 average price of broadleaf pulp was 4577 yuan/ton, up 0.4% from the previous period; the spot含税 average price of natural color pulp was 4900 yuan/ton, unchanged from the previous period; and the spot含税 average price of chemimechanical pulp was 3800 yuan/ton, unchanged from the previous period [4] - In terms of price, during the Spring Festival holiday, the market trading was basically stagnant, and the pulp price remained stable. After the holiday, the market gradually started, and the pulp price rose. Coniferous pulp mainly followed the positive upward exploration of the futures market, while broadleaf pulp was supported by the cost of the new round of price increase in the external market, and the downstream tissue paper enterprises issued price increase letters, which boosted market confidence to a certain extent. However, the downstream base paper market is still in the initial stage of post - holiday recovery, and paper mills are mostly waiting and watching for raw material procurement, with actual transactions not yet increasing. Although the port inventory is in the stage of post - holiday high - level inventory accumulation, the year - on - year inventory accumulation is less than last year, which supports the mentality of industry players [6] Group 3: Summary According to the Catalog 1. Fundamental Data - **Futures Market**: The daily closing price of the pulp main contract was 5312 yuan/ton, down 36 yuan from the previous day; the night closing price was 5272 yuan/ton, down 48 yuan from the previous day. The trading volume was 178329 lots, an increase of 2485 lots; the position of the 05 contract was 243577 lots, an increase of 3775 lots; the warehouse receipt quantity was 152537 tons, a decrease of 3084 tons; the net position of the top 20 members was - 29329 lots, a decrease of 4597 lots [3] - **Spread Data**: The basis of Silver Star - futures main contract was 38 yuan, an increase of 36 yuan; the basis of Goldfish - futures main contract (non - standard) was - 712 yuan, an increase of 36 yuan. The month - spread of SP03 - SP05 was - 50 yuan (domestic price) and - 6 dollars (international price) [3] - **Spot Market**: The prices of coniferous pulp brands such as Northwood and Cariboo were 5550 yuan/ton, the price of Moon was 5250 yuan/ton, and the price of Silver Star was 2350 yuan/ton. The price of broadleaf pulp brands such as Goldfish and Star was 4600 yuan/ton, the price of Gintha was 4580 yuan/ton, and the price of Buk阔叶 was 4500 yuan/ton. The price of chemimechanical pulp (Kunhe) was 3800 yuan/ton, and the price of natural color pulp (Venus) was 4900 yuan/ton [3] 2. Industry News - This week, the imported pulp market showed a trend of first stabilizing and then rising, with improved sentiment. The spot含税 average price of mainstream brands of coniferous pulp, broadleaf pulp, natural color pulp, and chemimechanical pulp had different changes compared with the previous period [4] 3. Futures Research - During the Spring Festival holiday, the pulp price remained stable, and after the holiday, it rose. Different pulp varieties had different driving factors, but the downstream base paper market was in the initial stage of post - holiday recovery, and actual transactions had not increased. The port inventory was in the post - holiday high - level inventory accumulation stage, but the year - on - year inventory accumulation was less than last year [6]

Group 1: SP Main Contract Closing Price - The closing price of the SP main contract on February 25, 2026, was 5348.00 [3] - The closing prices on February 24, 13, 12, and 11, 2026, were 5340.00, 5260.00, 5238.00, and 5236.00 respectively [3] - The corresponding dollar - converted prices were 680.16, 677.38, 664.54, 662.67, and 661.46 respectively [3] - The daily percentage changes were 0.14981%, 1.52091%, 0.42001%, 0.03820%, and 0.65359% respectively [3] - The Shandong Yinxing basis on February 25, 2026, was 27, and the Jiangsu - Zhejiang - Shanghai Yinxing basis was 17 [3] Group 2: Import Profit and Price Data - With a 13% VAT calculation, for Canadian brands, the CFR price of Golden Lion was 780 dollars, the Shandong RMB price was 6300, and the import profit was 174.78; for Lion, the CFR price was 730 dollars, the Shandong RMB price was 5370, and the import profit was - 402.06 [4] - For the Chilean brand Yinxing with a 90 - day CFR letter of credit, the port dollar price was 700, the Shandong RMB price was 5375, and the import profit was - 129.17 [4] Group 3: Pulp and Paper Price Averages - From February 11 to 25, 2026, the national average prices of softwood pulp, hardwood pulp, natural pulp, and chemimechanical pulp remained unchanged at 6073.75, 4810.75, 5415.00, and 3686.25 respectively [4] - The Shandong regional average prices of these pulps also remained unchanged at 6245.00, 4775.00, 5400.00, and 3600.00 respectively [4] - The cultural paper (double - offset index, double - copper index), packaging paper (white card index), and living paper (living index) prices remained unchanged from February 12 to 25, 2026 [4] Group 4: Pulp Profit Margin Estimates - The double - offset profit margin estimates on February 12, 13, 24, and 25, 2026, were - 2.1797%, - 2.1797%, - 2.9070%, and - 2.9412% respectively, with a change of - 0.0342 [4] - The double - copper profit margin estimates were 7.9583%, 7.9583%, 7.3250%, and 7.2917% respectively, with a change of - 0.0333 [4] - The white card profit margin estimates were - 7.7945%, - 7.7945%, - 8.2333%, and - 8.2564% respectively, with a change of - 0.0231 [4] - The living paper profit margin estimates were 8.5041%, 8.5041%, 6.7434%, and 6.6356% respectively, with a change of - 0.1078 [4] Group 5: Pulp Price Spreads - The softwood - hardwood price spreads on February 25, 24, 13, 12, and 11, 2026, were 710.00, 700, 755, 755, and 755 respectively [4] - The softwood - natural price spreads were - 25, - 35, - 90, - 90, and - 90 respectively [4] - The softwood - chemimechanical price spreads were 1500, 1490, 1435, 1435, and 1435 respectively [5] - The softwood - waste paper price spreads were 3799, 3789, 3734, 3734, and 3734 respectively [5]

Group 1: SP Main Contract Information - The closing price of the SP main contract on February 24, 2026, was 5340.00 [3] - The closing prices on February 13, 12, 11, and 10, 2026, were 5260.00, 5238.00, 5236.00, and 5202.00 respectively [3] - The corresponding dollar - converted prices were 677.38, 664.54, 662.67, 661.46, and 656.97 [3] - The daily price changes were 1.52091%, 0.42001%, 0.03820%, 0.65359%, and 0.03846% [3] - The Shandong Yinxing basis on February 24, 2026, was 25, and on February 13, 12, 11, and 10, 2026, were 50, 72, 74, and 108 respectively [3] - The Jiangsu - Zhejiang - Shanghai Yinxing basis on February 24, 2026, was 25, and on February 13, 12, 11, and 10, 2026, were 50, 72, 74, and 138 respectively [3] Group 2: Import Profit Information - For Canadian pulp, the CFR price of Golden Lion was 780, the RMB price in Shandong was 6300, and the import profit was 165.97 [4] - The CFR price of Lion was 730, the RMB price in Shandong was 5335, and the import profit was - 475.31 [4] - For Chilean pulp, the CFR price of Yinxing (90 - day letter of credit) was 710, the RMB price in Shandong was 5365, and the import profit was - 224.82 [4] Group 3: Pulp Price and Profit Margin Information - From February 10 to February 24, 2026, the national average prices of softwood pulp, hardwood pulp, natural pulp, and chemimechanical pulp remained unchanged, at 6073.75, 4810.75, 5415.00, and 3686.25 respectively [5] - The average prices in Shandong for the same period also remained unchanged, at 6245.00, 4775.00, 5400.00, and 3600.00 respectively [5] - The indices of cultural paper (double - offset and double - copper), packaging paper (white card), and living paper remained unchanged from February 11 to February 24, 2026 [5] - The profit margins of double - offset paper decreased by 0.7273, double - copper paper decreased by 0.6333, white card paper decreased by 0.4388, and living paper decreased by 1.7607 from February 11 to February 24, 2026 [5] - The price differences between softwood and hardwood pulp on February 24, 2026, was 700.00, and from February 10 to February 13, 2026, were 755 [5] - The price differences between softwood and natural pulp on February 24, 2026, was - 35, and from February 10 to February 13, 2026, were - 90 [5] - The price differences between softwood and chemimechanical pulp on February 24, 2026, was 1490, and from February 10 to February 13, 2026, were 1435 [6] - The price differences between softwood and waste paper on February 24, 2026, was 3789, and from February 10 to February 13, 2026, were 3734 [6]

Group 1: SP Main Contract Information - The closing price of the SP main contract on February 13, 2026, was 5260.00 [3] - The change compared to the previous day was 0.42001%, and the converted US dollar price was 664.54 [3] - The basis of Shandong Yinxing was 50, and that of Jiangsu, Zhejiang, and Shanghai Yinxing was also 50 [3] Group 2: Import Profit Information - For Canadian Golden Lion pulp (CFR), the port US dollar price was 780, the RMB price in Shandong was 6300, and the import profit was 139.53 [4] - For Canadian Lion pulp (CFR), the port US dollar price was 730, the RMB price in Shandong was 5270, and the import loss was 500.06 [4] - For Chilean Yinxing pulp (CFR, 90 - day letter of credit), the port US dollar price was 700, the RMB price in Shandong was 5310, and the import loss was 225.81 [4] Group 3: Pulp Price and Profit Margin Information - From February 9 to February 13, 2026, the national average prices of softwood pulp, hardwood pulp, natural pulp, and chemimechanical pulp remained unchanged, with values of 6073.75, 4810.75, 5415.00, and 3686.25 respectively [5] - The average prices in Shandong for the same period also remained unchanged, with softwood pulp at 6245.00, hardwood pulp at 4775.00, natural pulp at 5400.00, and chemimechanical pulp at 3600.00 [5] - The indices of cultural paper (double - offset and double - copper), packaging paper (white card), and living paper remained unchanged from February 10 to February 13, 2026 [5] - The profit margins of double - offset paper, double - copper paper, white card paper, and living paper also remained unchanged during this period, with values of - 2.1797%, 7.9583%, - 7.7945%, and 8.5041% respectively [5] - The price differences between softwood and hardwood, softwood and natural, softwood and chemimechanical, and softwood and waste paper remained constant from February 9 to February 13, 2026, at 755, - 90, 1435, and 3734 respectively [5][6]