& Man Paper Announces 2025 Annual Results

(Hong Kong, 10 March 2026) - Lee & Man Paper Manufacturing Limited ("Lee & Man Paper" or the "Group") (HKEX: 2314), one of the largest containerboard manufacturers in China, today announced its annual results for the year ended 31 December 2025. During the year, the Group's total revenue increased by 2.5% year-on-year to HK$26.6 billion (2024: HK$26.0 billion). Profit for the year increased by 43% year-on-year to HK$1.9 billion (2024: HK$1.4 billion). Earnings per share for the year were HK45.20 cents (2024: HK30.56 cents).

The Board of Directors proposed the payment of an annual dividend of HK9.3 cents per share for the year ended 31 December 2025 (2024: HK4.5 cents per share). Together with the interim dividend of HK6.6 cents per share already paid (2024: HK6.2 cents per share), the total dividend for the year has increased to HK15.9 cents per share (2024: HK10.7 cents per share), representing a payout ratio of approximately 35% (2024: 35%).

Fully leveraging the advantage of its vertical integration of pulp and paper operations, the Group effectively mitigated the cost pressures caused by significant price fluctuations in raw materials through flexible adjustment of its capacity between internal pulp production and external procurement. Simultaneously, the Group continued to optimize the production layout and energy structure of its domestic production bases, further reducing its overall production costs. During the year, a number of technology upgrade and efficiency enhancement projects were actively implemented for the Group's production lines, which have increased its overall efficiency and laid a solid foundation for the full release of production capacity and efficiency enhancement. As for its packaging paper business, in 2026, the PRC government prioritized "boosting consumption" as its top economic goal, which is expected to favor the packaging paper business. With cost advantages through integration and intelligent manufacturing capabilities, the Group's packaging paper business is well positioned to capture further market share and increase its profit margins.

Looking ahead, the Group's key strategic focus will be on the expansion of export markets. The Group will continue to expand the regional coverage of its production bases in Southeast Asia and actively explore investment opportunities in emerging markets along the "Belt and Road". By upgrading its industrial chain with

digital and intelligent technologies, the Group aims to provide more competitive supply chain services to its global customers, truly transforming its world-wide presence into a sustainable growth engine.

As for its tissue paper business, the consumption of tissue paper per capita in the PRC has enormous growth potential, when compared with that in developed markets. The Group will insist on high-end and green development, continue to launch new products with softer texture and better quality to meet upgraded consumer demand and enhance the competitiveness through continuous product innovation, so as to capture market opportunities for long-term growth brought about by consumption upgrades.

The pulp business is a crucial part of vertically integrated production. The Group will continue to advance technological upgrades and optimise production facilities to reduce costs and increase efficiency. At the same time, the Group will continue to refine its vertically integrated system to ensure a stable supply of raw materials to the downstream paper and tissue manufacturing businesses, thereby enhancing the operational efficiency and profitability of the entire supply chain.

As at 31 December 2025, the Group maintained a healthy financial position with bank balances and cash of HK$1,942 million (31 December 2024: HK$1,521 million). The Group's net gearing ratio decreased from 0.73 as at 31 December 2024 to 0.63 as at 31 December 2025.

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About Lee & Man Paper Manufacturing Limited (HKEX: 2314)

Lee & Man Paper Manufacturing Limited is one of the leading paper manufacturers in China and was included in the MSCI China Index in 2017. The Group mainly engages in large-scale paper manufacturing businesses, specialises in producing paper products such as kraft linerboard, coated duplex board, corrugated paperboard, tissue paper and pulp. Currently, the Group has six paper production plants in China, located in Huangyong in Dongguan, Hongmei in Guangdong, Changshu in Jiangsu, Yongchuan in Chongqing, Jiujiang in Jiangxi and Chongzuo in Guangxi; and two production plants in Southeast Asia, one in Hau Giang, Vietnam and one in Selangor, Malaysia.

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