Financial Performance - For the fiscal year ending June 30, 2021, Nine Dragons Paper reported revenue of RMB 61,574.1 million, a 19.9% increase from RMB 51,341.2 million in the previous year[9] - Gross profit rose to RMB 11,690.9 million, reflecting a 29.5% increase compared to RMB 9,027.3 million in the prior year[9] - The operating profit increased by 40.9% to RMB 8,541.7 million from RMB 6,061.4 million year-over-year[9] - Profit attributable to equity holders surged by 70.4% to RMB 7,101.1 million, up from RMB 4,168.5 million in the previous year[9] - Adjusted profit attributable to equity holders increased by 52.4% to RMB 6,753.4 million from RMB 4,430.1 million[9] - Basic earnings per share rose to RMB 151.3, a 70.4% increase from RMB 88.8 in the previous year[9] - The company’s gross margin improved to 19.0%, up from 17.6%, marking a 1.4 percentage point increase[9] - Total assets increased to RMB 92,172.4 million in June 2021, up 16.2% from RMB 79,319.6 million in June 2020[10] - The net profit attributable to equity holders of the company was RMB 7,101.1 million, a significant rise from RMB 4,168.5 million in 2020, representing a 70% increase[52] Production Capacity and Expansion - The company achieved a record sales volume of 16.5 million tons, an increase of 1.2 million tons year-on-year[18] - The total designed annual production capacity for pulp (recycled pulp and wood pulp) is 850,000 tons, while the total designed annual production capacity for paper is 17.57 million tons as of June 30, 2021[25] - The company plans to increase its production capacity by 6.25 million tons, focusing on high-end products such as white cardboard and food-grade white cardboard, aiming for a total designed annual production capacity of over 23.82 million tons by June 2024[28] - The new integrated pulp and paper project in Guangxi Beihai is expected to provide over 3 million tons of wood pulp for self-use by the end of 2023, enhancing product quality and cost control[28] - The company has successfully launched new paper production capacities in Quanzhou, Shenyang, Dongguan, and Hebei, adding a total of 2.05 million tons of annual capacity[25] Financial Management and Costs - Net cash generated from operating activities was RMB 2,516.8 million, a decrease of 71.9% from RMB 8,948.7 million[9] - Capital expenditures for the year were RMB 6,060.2 million, representing a 26.4% increase from RMB 4,794.1 million[9] - The total debt to total assets ratio was 49.7%, an increase of 1.1 percentage points from 48.6% in the previous year[9] - The net financial expenses decreased by approximately RMB 121.7 million, or 16.1%, to about RMB 636.0 million in the fiscal year 2021, primarily due to a drop in the average interest rate from 3.3% to about 2.8%[38] - Sales and marketing costs increased by approximately 14.3% to about RMB 1,811.6 million, while the percentage of these costs relative to total sales revenue slightly decreased from 3.1% to about 2.9%[35] Environmental and Sustainability Initiatives - The company is committed to maintaining a balance between debt levels, cash flow, and foreign exchange risks while focusing on innovation and sustainable development[23] - The company is enhancing its core technology for new products focused on low-carbon and environmentally friendly concepts, including the construction of food-grade white cardboard and paper bag production capacity[62] - The group achieved a desulfurization efficiency of over 95% and a denitrification efficiency of over 85%, with dust removal efficiency reaching 99.95%[76] - The total greenhouse gas emissions increased by 13.9% to 15,434,627 tons of CO2 equivalent, primarily due to increased production capacity and implementation of the "waste ban" policy[79] - The company has implemented advanced anaerobic treatment technology for wastewater, utilizing biogas generated as clean energy for boilers[100] Employee and Community Engagement - The group employed 19,576 full-time employees and held 779 patents, with an additional 170 patents pending approval as of June 30, 2021[31] - The vaccination rate among employees reached over 98% as of June 30, 2021, with the company encouraging vaccination and organizing orderly access to medical institutions for employees[112] - The company donated over RMB 50 million to various charitable activities, including disaster relief and poverty alleviation efforts[131] - The company has established multiple scholarship funds and provided financial support to various primary and secondary schools and community educational activities[140] Corporate Governance - The board of directors consists of 11 members, including 7 executive directors and 4 independent non-executive directors, responsible for long-term strategy formulation and performance monitoring[167] - The company has adopted comprehensive corporate governance principles and has complied with the corporate governance code as per the listing rules[165] - The company emphasizes communication with shareholders and potential investors, ensuring they have access to comprehensive and understandable information[189] - The company has implemented a robust internal audit and compliance system to prevent corruption and ensure transparency[129] Risk Management - The group maintains a strong operational income base and scale effect, ensuring cash flow remains sufficient to keep the debt ratio within a controllable range despite increased capital expenditure risks[67] - The company has a dedicated team for intellectual property protection, ensuring compliance with local laws and regulations[125] - The company has established a comprehensive emergency response plan for extreme weather events, including typhoons and heavy rain, to ensure the safety of operations[104]
玖龙纸业(02689) - 2021 - 年度财报