China’s Nine Dragons Paper warns of loss of up to £284 million in last financial year

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Nine Dragons Paper mill
A Nine Dragons recycled paper mill

Chinese mill group Nine Dragons Paper has issued a profit warning that could reach a loss of up to £284 million for the last financial year.

In a statement, the company said it expected to make a loss of between RMB2,200 million (£240 million) to RMB2,600 million (£284 million) for the year ended 30 June 2023 according to its latest management accounts.

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It is expected to confirm this preliminary assessment before the end of this month when it publishes its full results.

In the statement, Nine Dragons Paper said: “The loss attributable to equity holders of the company is mainly due to the decrease in the selling price of the products and the substantial decrease of gross profit margin during the year. Sales volumes remained relatively stable for the year.”