Record high revenue and net profits for Nine Dragons Paper in 2020

Nine Dragons Paper (Holdings) Limited announced last week its unaudited interim results for the six months ended 31 December 2020. The figures demonstrate a very strong resilience despite the global crisis, and the group is optimistic for the moths to come.

  • Revenue increased by 7.1% year-on-year to a historical high of RMB 30.9 billion
  • Sales volume achieved record high of 8.6 million tonnes
  • Net profit1 was RMB 4.0 billion; a year-on-year increase of 75.6%
  • Gross profit margin of 20.9%; a year-on-year increase of 3.8 percentage points
  • Net profit margin of 13.0%; a year-on-year increase of 5.1 percentage points
  • Net gearing ratio decreased to 44.1%, the lowest level since listing
  • Basic earnings per share increased by RMB 36 cents year-on-year to RMB 0.85
  • Interim dividend of RMB 10.0 cents per share

In 2020, the global economy remained distressed. Coupled with factors such as the soon to be launched “Zero import quota on recovered paper” policy and the volatile Renminbi exchange rate, the packaging paper industry in China has been faced with severe tests. Facing the challenges, the Group has once again leveraged its edge as a leading enterprise. Both selling price and sales volume have recorded an increase, with revenue and sales volume reaching record high during the year. Gross profit and net profit increased by 31.3% and 75.6%, while gross profit margin and net profit margin rose by 3.8 and 5.1 percentage points respectively. Cash flow remained at a considerably healthy level.