Nine Dragons Paper posts strong profit growth, boosted by expansion

Nine Dragons Paper (Holdings) Limited announced a robust financial performance for the year ended June 30, 2025, with net profit soaring by 177.3% to RMB2,201.7 million. Profit attributable to equity holders of the company increased by 135.4% to RMB1,767.1 million, resulting in basic earnings per share of RMB0.38, up 137.5%. Revenue for the period rose by 6.3% to RMB63,240.5 million, primarily due to a 9.6% increase in sales volume to 21.5 million tonnes.

The company's gross profit also saw a significant increase of 26.9% to RMB7,245.1 million, with the gross profit margin expanding from 9.6% in fiscal year 2024 to 11.5% in fiscal year 2025, largely due to lower raw material costs relative to selling prices. Operating profit grew by 48.8% to RMB3,936.6 million. The group’s capacity expansion projects in Beihai, Guangxi Zhuang Autonomous Region, and Jingzhou, Hubei Province, successfully commenced production, further extending market reach.

Total assets stood at RMB149,038,171 thousand, with total equity reaching RMB50,611,604 thousand. The company increased its borrowings to support capacity expansion, with total borrowings amounting to RMB75,418,439 thousand as at June 30, 2025.