Nine Dragons Paper Announces FY2020 Annual Results

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  • Achieves Record High Sales Volume Despite Challenging Times
  • Net Profit Rises 7.5% to RMB 4.2 Billion
  • Net Gearing Ratio Reaches Decade Low
  • Dividend Per Share for the Year Increases 14.3%

(Hong Kong, 22 September 2020) Nine Dragons Paper (Holdings) Limited (the “Company”) is pleased to announce the audited consolidated annual results of the Company and its subsidiaries (the “Group” or “Nine Dragons Paper”) for the twelve months ended 30 June 2020 (the “Yea r”).

  • Record high sales volume; a year-on-year increase of 8.5% to approximately 15.3 million tonnes
  • Net profit1 was RMB 4.2 billion; a year-on-year increase of 7.5%
  • Gross profit margin of 17.6%, a year-on-year increase of 2.0 percentage points
  • Net profit margin of 8.1%; a year-on-year increase of 1.0 percentage pointNet gearing ratio decreased by 8.7 percentage points year-on-year to 50.5%
  • Basic earnings per share increased by RMB 6 cents year-on-year to RMB 89 cents
  • Final dividend of RMB 22 cents per share; together with the interim dividend per share of RMB 10 cents, dividend for the Year amounted to RMB 32 cents (FY2019: RMB 28 cents) per share with a dividend payout ratio of 36.0% (FY2019: 33.8%)

During FY2020, the global economy and Chinese packaging paper industry were faced with historically severe challenges. Amidst these challenges, the Group prudently focused on its core business and sought for steady growth, resulting in a growth of overall profitability in spite of the challenging times. The Group achieved record high annual sales volume of approximately 15.3 million tonnes; increase of 6.0% and 7.5% in its gross profit and net profit; and a respective rise of 2.0 and 1.0 percentage point in its gross profit margin and net profit margin. In addition, the Group’s net gearing ratio at 50.5% was the lowest in the past decade; management efficiency in inventory and working capital were enhanced and cash flow remained strong.


Source: ND Paper