The Board of Directors of Nine Dragons Paper (Holdings) Limited announced the audited consolidated results for the year ended 30 June 2016 (“FY2016” or the “Year”).
Both sales volume and sales revenue of the Group hiked to historical high once again during the Year: total sales volume reached approximately 13.1 million tonnes, increased by 7% year-on-year, bringing approximately RMB 32,092.8 million in sales, an increase of 6.6% year-on-year.
Although the sales growth rate was slightly lower than the sales volume growth rate which reflects the slight decline of the average selling price of the products, according to Mr. Armstrong Zhang, CFO of the Company, average selling price in the second half of the Year has increased 1.1% compared to the first half of the Year.
This is mainly due to market order restoring, thus maintaining a product price uptrend with the prices of corrugating medium products kept rising continuously in particular. This 2 clearly reflects the effect of closure of small plants and outdated capacities.
In the Year, gross profit margin increased to 18.3% from 15.7% as compared with the last financial year; profit attributable to equity holders of the Company decreased by 20.5% to RMB 1,121.7 million which was mainly caused by the significant fluctuations of the exchange rate of RMB vs other currencies, as a result of the reform of the RMB central parity rate quotation regime, which led to a substantial amount of exchange loss, thus affecting the Group’s profit for the Year.
Nine Dragons Paper (Holdings) Limited is the largest containerboard product producer in China and Asia (including Japan), and one of the largest producers in the world, in terms of design capacity. The Group primarily manufactures and sells linerboard, high performance corrugating medium and certain types of coated duplex board. The Group also produces and sells recycled printing and writing paper and specialty paper.
