Nine Dragons reported increase of both sales volume and revenue in 2016. According to the announcement, the company’s sales volume reached approximately 7.1Mt, increased by 6.2% as compared with the corresponding period of the previous financial year, bringing approximately RMB 19,125 million in sales (unaudited), an increase of 17.3%.
At the same time, gross profit margin increased from 17.3% to 18.3% in the period, while profit attributable to equity holders of the company was approximately RMB 1,914.7 million.
Ms. Cheung Yan, Nine Dragons’ Chairlady, commented:
“With deepening of China’s economic transformation and continuously cutting excessive industrial capacity in the process of supply-side reform, the manufacturing sector puts equal emphasis on economies of scale and operation efficiency. New market orders and supply-demand dynamics are being formed. The enormous production and sales platform built by ND Paper during the past 20 years and its tremendous strength in operation and management will provide the unparalleled advantages enjoyed by a market leader for taking preemptive opportunities along the way of China’s economic transformation and sustainable development. The Company will adopt a prudent approach in capacity expansion, while making unremitting efforts in equipment upgrading, efficiency enhancement, cost control and lowering of net debt gearing ratio. The Company is also actively developing its intelligent management information system, quickly migrating into informatization, automation and intelligentization, so that its product quality, services and costs will all reach ‘Industry 4.0’ standards in an ever changing market, offering stable quality and increasing production. Our goal is to make ‘a piece of high quality paper’ at the best price/value, and to bring better return to our shareholders.”
Earlier Nine Dragons Industries announced more than EUR 100 million investment into expansion of containerboard production at its Quanzhou and Chongqing mills in China.
About Nine Dragons:
The company is a global leader in recovered paper based paper manufacturing in terms of production capacity. The company and its subsidiaries produce linerboard, high performance corrugating medium and coated duplex board. The group produces printing and writing paper in Dongguan and Taicang and packaging paperboard and specialty paper in Leshan, Sichuan Province. The group has also acquired 100% control equity interest in Hebei Yongxin Paper Co., Ltd.