Nine Dragons Paper (Holdings) Limited, along with its subsidiaries, is engaged in the manufacture and sale of packaging paperboard products and unbleached kraft pulp in the People’s Republic of China. The Company primarily manufactures linerboard, corrugating medium and certain types of coated duplex board. It also manufactures specialty paper, wood and bamboo pulp through a subsidiary, and produces unbleached kraft pulp through its joint venture subsidiary, which it uses as raw material for its own production, as well as sells to third parties. As of June 30, 2009, the total design production capacity of the Company was 8.82 million tons per annum, among which 23 packaging paperboard paper machines are operating in China. These include 4.60 million tons per annum for linerboard, 3 million tons per annum for corrugating medium and 0.95 million tons per annum for coated duplex board.