Nine Dragons points to earnings growth
Nine Dragons points to earnings growth
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Hong Kong-based containerboard producer Nine Dragons Paper (Holdings) Limited has issued a profit warning in advance of the release of its second-half 2016 calendar year financial results, which represent the first half of the company’s 2017 fiscal year.
“The profit attributable to equity holders of the company for the period is expected to increase not less
than 45% as compared to the corresponding period [the second half of 2015], due to stable growth of the revenue of the group,” the company says in a statement issued 23 January 2017.
The results for the company’s 2016 fiscal year, which ended 30 June 2016, involved a 20% decrease in profits compared to the prior fiscal year, according to a September 2016 news release issued by the company.
At that time, however, Nine Dragons expressed optimism about the near-term market, stating Nine Dragons had “benefited from measures adopted by the [Chinese] government to close down outdated and less efficient production capacities in the main manufacturing regions.”
Nine Dragons said with these measures, combined with “stricter approval of new production capacities, the order of the supply side improved continuously, thus the containerboard industry of China kept getting better.”
In the same news release, Nine Dragons Chair Cheung Yan commented, “Along with the continual improvement of packaging paper market conditions in China, the [Nine Dragons] Group is gradually harvesting the return from its previous efforts and investments, and achieved better results in many aspects this Year.”
She added, “Along with the large decrease of foreign currency borrowings and the increase of RMB [Chinese yuan] borrowings, the impact of foreign currency market fluctuations is expected to be much reduced, bringing improvements to [our] profits. As the leading company of the packaging paper industry, Nine Dragons Paper has firmly secured the advantages along China’s ‘new normal’ reform, moving forward to a new phase of steady development and higher returns in the future.”]]>
Source: Recycling Today
Nine Dragons points to earnings growth
<![CDATA[Hong Kong-based containerboard producer Nine Dragons Paper (Holdings) Limited has issued a profit warning in advance of the release of its second-half 2016 calendar year financial results, which represent the first half of the company’s 2017 fiscal year. “The profit attributable to equity holders of the company for the period is expected to increase not less than 45% as compared to the corresponding period [the second half of 2015], due to stable growth of the revenue of the group,” the company says in a statement issued 23 January 2017. The results for the company’s 2016 fiscal year, which ended 30 June 2016, involved a 20% decrease in profits compared to the prior fiscal year, according to a September 2016 news release issued by the company. At that time, however, Nine Dragons expressed optimism about the near-term market, stating Nine Dragons had “benefited from measures adopted by the [Chinese] government to close down outdated and less efficient production capacities in the main manufacturing regions.” Nine Dragons said with these measures, combined with “stricter approval of new production capacities, the order of the supply side improved continuously, thus the containerboard industry of China kept getting better.” In the…