MIZA LISTS HOSE: AMBITION TO LEAD THE PAPER INDUSTRY

Founded in 2010, Miza has risen from a humble beginning but with great ambitions for scale. Throughout the development process, the business has undergone 10 rounds of strategic capital mobilization. In particular, the strongest breakthrough period took place from 2018 to the end of 2025, bringing the official charter capital to VND 1,165 billion. All capital resources are directly financed for the process of investment and expansion of large projects of manufacturing plants.

Instead of following the trend of massive capital increases, Miza chooses the path of growing with transparency. The decision to trade shares on UPCoM from the end of 2024 is a deliberate "fire test" step. This period of time helps businesses practice the discipline of information disclosure, get used to the supervisory pressure of the mass market, thereby creating a solid stepping stone before confidently moving forward to the big "playground" of HOSE.

By the end of Q1/2026, Miza's total assets have broken through to VND 5,583 billion. In which, the large proportion comes from fixed assets (machinery systems, factories) has reached VND 1,496.4 billion. Along with nearly 450 billion VND of unfinished capital construction costs are being directly focused on the PM5 project.

Receivables reached VND 1,558.5 billion (accounting for 27.9%). Notably, the component of which up to VND 714 billion is an advance to the seller to ensure the supply of equipment and materials. Next was Inventory reached VND 782.5 billion (accounting for 14%), most of which were reserves of main materials and finished products. Anchoring inventory and cash advances are mandatory defensive strategies to protect profit margins against global OCC price shocks.

To finance this infrastructure, Miza's capital structure was also reshaped. As of March 31, 2026, liabilities are at VND 4,065.1 billion (accounting for 72.8% of total capital), while Equity reached VND 1,518.2 billion (accounting for 27.2%). Maintaining high leverage is an inevitable feature of the investment cycle (CAPEX) in the heavy industry. The important thing is that the equity buffer of over VND 1,500 billion is still doing a good job as a counterpart, helping Miza accumulate assets to prepare to enter the "fruit picking" cycle.

Shifting focus to the Kraftliner and Testliner premium paper segments

The process of expanding the size of Miza's charter capital to VND 1,165 billion is carried out according to the long-term strategic roadmap. Based on the characteristics of the paper industry being capital-intensive and requiring economies of scale, the Board of Directors has proactively structured capital sources to finance large-capacity production complexes. The core goal of this strategy is to optimally allocate fixed costs per unit of product, lower the cost of goods sold, and create room to improve gross profit margins.

The first base is Miza Dong Anh Paper Recycling Factory (Hanoi). From the original design capacity of 32,500 tons/year, the factory has been continuously upgraded and is currently operating with a capacity of more than 47,000 tons/year. With a prime location near the center of the Capital and a network of large industrial parks, Miza Dong Anh helps businesses optimize logistics costs, acting as a dominant center for packaging market share in the North.

However, Miza's "steel punch" lies in the Miza Nghi Son Factory Project (Thanh Hoa). The scale of this complex is up to 220,000 tons/year. In particular, Phase 1 (PM3 line) with a capacity of 120,000 tons/year has been successfully put into commercial operation by Miza since 2021. Currently, resources are being devoted to Phase 2 – PM5 line (capacity of 100,000 tons/year), which is expected to be officially put into operation from Q3/2026. The location of the factory in Nghi Son Economic Zone not only solves the problem of output but also brings outstanding advantages in terms of tax incentives, creating a solid competitive advantage.

The point that makes the difference is that MZG does not use this new 100,000 tons of capacity to compete in the low-cost conventional paper segment. All of PM5's resources will be focused on producing high-end face paper lines such as White-top Liner, Testliner and especially Kraftliner. This is a landmark strategy to "restructure" profit margins and reshape the position of businesses in the market.

This shift comes from 4 core strategic causes. Firstly, the conventional commercial business segments bring a relatively thin profit margin (only about 2.7% - 2.8%), while the high-end finished paper production segment such as Kraftliner paper recorded the highest profit margin (reaching over 30%), and Testliner paper also showed a significant improvement in profit margin over period. Thanks to actively narrowing the commercial segment to focus on these high-value-added product lines, Miza's manufacturing gross profit margin set a new peak of 17.6% in Q1/2026.

Kraftliner and Testliner paper are high-end face papers that possess good tensile strength, extremely high bearing capacity and smooth surface. These properties are ideal for making the outer layer of high-end cartons, especially perfectly meeting the strict requirements for sharp printing quality. This is the standard that multinational corporations and FDI customers in Vietnam are eagerly seeking. Miza shifted to this segment not only to serve the domestic market but also to use it as a "weapon" to expand export market share to Thailand, Myanmar and Bangladesh.

The universal packaging paper market (such as Medium corrugated paper) is often under fierce competitive pressure on prices from domestic competitors as well as pressure from imported low-priced paper. Instead of getting caught up in the race of "burning prices" in the low segment, Miza chose to "upgrade" the barrier to entry. By focusing on Kraftliner and Testliner, the company established itself with a solid advantage, protecting profits from the wobbles of raw material price fluctuations and the battle for market share in the conventional segment.

Ambition to lead the high-end segment and the target of 1 million tons/year

Owning two modern factory complexes not only helps Miza increase the total capacity of the whole system to nearly 270,000 tons/year, but also serves as a foundation for businesses to reshape the paper industry game - shifting to the high-end segment is the key for Miza to increase profitability and establish a leading position.

Miza's ambitions do not stop at the present. The enterprise has officially set a long-term strategic goal: Striving to reach 1,000,000 tons/year by 2030, aiming to become the No. 1 enterprise in Vietnam.

In order to realize the ambition to reach a total capacity of 1 million tons/year by 2030 and become a leading enterprise in Vietnam's paper industry, Miza has outlined specific goals and strategic orientations in the medium-term period of 2025 - 2030.

Specifically, in addition to putting the PM5 project into operation, Miza started to invest in the PM6 project at Miza Nghi Son factory and continued to implement the Miza Nghi Son Industrial Park Project. According to the projected capacity roadmap, the company also plans for the next lines (such as PM7) to meet the 1 million ton mark.

At the same time, the company aims to diversify its investment and operational capital sources, including equity, commercial loans and capital market mobilization (bond and stock issuance). The aim is to optimize capacity, ensure low capital costs, and balance the safe and efficient use of capital.

MZG also focuses on upgrading "Green" technology and high performance, in parallel with expanding markets and distribution channels.

In terms of governance, improve the governance system and coordination mechanism between member units in the group. Improve management capacity, access to international standards, and operate businesses safely and sustainably. Focus on building high-quality human resources, focusing on recruitment, training, building corporate culture and improving labor productivity.

With a high transparency platform, HOSE will be a "strategic advancement, helping Miza mobilize long-term capital to operate a huge production machine, gradually realizing its ambition to lead Vietnam's supporting industry.