Also, it advised shareholders and potential investors to exercise caution when dealing in the shares of the company.
SEATTLE (Scrap Monster): Hong Kong-based Nine Dragons Paper (Holdings) Ltd. issued profit warning for the recently completed fiscal year ended 30th June, 2022. This is mainly due to the inability of the company in passing along the escalated raw material costs to selling prices of finished board to customers.
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Based on preliminary review, the profit attributable to equity holders of the company for the recently concluded fiscal year is expected to decrease not more than 60% as compared to the previous fiscal year. The increase in the selling price of the products was much slower than the increase in the cost of raw materials during this period. Also, the sales volume remained relatively stable, said Cheung Yan, Chairman of Board of the company.
The company noted that the information contained in the announcement is only a preliminary assessment by the board based on the information currently available. The company is in the process of preparing its final annual results for the year. Also, it advised shareholders and potential investors to exercise caution when dealing in the shares of the company.
The release reported the company’s profit attributable to equity holders for the fiscal to be RMB6,753.4 million after excluding RMB347.7 million of the exchange gains on operating and financing activities.
