Orient Paper, Inc. Announces Unaudited Preliminary Results for Second Quarter 2013

Orient Paper, Inc. Announces Unaudited Preliminary Results for Second Quarter

PR Newswire

BAODING, China, July 30, 2013

BAODING, China, July 30, 2013 /PRNewswire/ --Orient Paper, Inc. (NYSE MKT:
ONP) ("Orient Paper" or the "Company"), a leading manufacturer and distributor
of diversified paper products in North China, today announced its preliminary
unaudited results for the second quarter ended June 30, 2013. The Company will
file its Form 10-Q with the Securities and Exchange Commission and will
announce, through a press release, its unaudited financial results for the
second quarter ended June 30, 2013 after market closes on Monday, August 12,

Preliminary Second Quarter 2013 Selected Unaudited Financial Results

                                             2Q12   2Q13   Change
Revenue (US$ million)                        35.5   33.0   -7.0%

Revenue excluding PM1*                       28.2   33.0   17.0%
Sales volume (tonnes)                                    

- Corrugating Medium Paper ("CMP")  58,384 55,025 -5.8%

- Offset Printing Paper             16,615 16,424 -1.1%

- Digital Photo Paper               489    311    -36.4%
Average selling price/tonne ("ASP")                      

- CMP                               $369   $374   1.4%

- Offset Printing Paper             $728   $686   -5.8%

- Digital Photo Paper               $3,832 $3,870 1.0%
Gross profit (US$ million)                   5.8    6.1    5.4%
Net income (US$ million)                     3.6    3.6    0.8%
EPS (US$)                                    0.2    0.2    -
*PM1 suspended operation since 31 December 2012 for modernization

Key Highlights for Second Quarter 2013

  oGross profit up 5.4% YoY to US$6.1 million
  oNet income up 0.8% YoY US$3.6 million
  oSecured RMB150 million financing arrangement to fund new tissue business
  oConstruction of tissue paper production facility on schedule

Mr. Zhenyong Liu, Chairman and Chief Executive Officer of Orient Paper,
commented, "Despite the current economic environment, we are pleased that our
businesses have started to recover steadily with our production ramping up
from the previous quarter. The Company's overall profitability has improved as
a result.

"We are also excited as we continue to make inroads into our tissue paper
business expansion," continued Mr. Liu. "Securing the RMB150 million financing
arrangement is an important milestone for Orient Paper, as well as an
appreciation and recognition of our business strategy in the midst of tight
credit conditions in China, which will provide adequate working capital for
the later stage of this project."

Industry Update

Following the Ministry of Industry and Information Technology's ("MIIT")
announcement in China to retire a total of 4.6 million tonnes old and
inefficient paper production capacities in April 2013, the Hebei Province also
announced in May its target to close 2.15 million tonnes of paper production
capacities in 2013. In July, the MIIT released its first batch list of 2013
closed capacities for6.2 million tonnes in the country, with 0.9 million
tonnes of such capacities located in the Hebei Province, which have resulted
in the expectation in the market that the actual closures for 2013 will
exceed the earlier announced target plan.

Mr. Liu added, "We expect consolidation within the paper manufacturing sector
to continue following the government's announcement on its 2013 first batch
list to retire outdated paper production capacities. As a leading player in
the fragmented North China packaging paper segment, Orient Paper is committed
to both efficiency and environmental conservation. For this purpose, the
Company has taken the initiative to voluntarily shutdown our PM1 line since
end of last year for our modernization program. We are all subject to rigorous
inspection but we are well positioned to ride above this and take advantage of
the mandatory closures to increase market share and cement our leadership in
this anticipated industry consolidation."

Conference Call

Orient Paper's management will host a conference call for institutional and
retail investors at 8:30 am US Eastern Time (5:30 am US Pacific Time/8:30 pm
Beijing Time) on Tuesday, August 13, 2013, to discuss its quarterly results
and recent business, operational and corporate activities.

To participate in the conference call, please dial the following number five
to ten minutes prior to the scheduled conference call time:

China:         400-120-0654
Hong Kong:     800-903-737
United States: 1-855-500-8701
International: +65-6723-9385
Passcode:      2212 4989

A replay of this conference call will be available by dialing:

China:         400-120-0932 / 800-870-0205
Hong Kong:     800-963-117
United States: 1-855-452-5696
International: +61-2-8199-0299
Passcode:      2212 4989

The replay will be archived for fourteen days following the earnings
announcement until August 27, 2013.

This conference call will be broadcast live over the Internet and can be
accessed by all interested parties by clicking on
http://www.orientpaperinc.com/. Please access the link at least fifteen
minutes prior to the start of the call to register, download, and install any
necessary audio software. A replay will be archived for one year shortly after
the call by accessing the same link.

About Orient Paper, Inc.

Orient Paper, Inc. ("Orient Paper") is a leading paper manufacturer in North
China. Using recycled paper as its primary raw material, Orient Paper produces
and distributes three types of paper products namely, packaging paper
(corrugating medium paper), offset printing paper, and other paper products,
including digital photo paper, and household/tissue paper that the company is
currently expanding into.

With production operations based in Baoding in North China's Hebei Province,
Orient Paper is located strategically close to the Beijing and Tianjin region,
home to a growing base of industrial and manufacturing activities and one of
the largest markets for paper products consumption in the country.

Orient Paper's production facilities are controlled and operated by its wholly
owned subsidiary Shengde Holdings, Inc., which in turn controls and operates
Baoding Shengde Paper Co., Ltd., and Hebei Baoding Orient Paper Milling Co.,
Ltd for manufacturing digital photo, printing and packaging paper.

Founded in 1996, ONP has been listed on the NYSE MKT Board since December
2009. (Please visit http://www.orientpaperinc.com.)

Safe Harbor Statement

This announcement contains forward-looking statements within the meaning of
the safe harbor provisions of the Private Securities Litigation Reform Act of
1995. All statements other than statements of historical fact in this
announcement are forward-looking statements, including but not limited to,
anticipated revenues from the digital photo paper business segment; the
actions and initiatives of current and potential competitors; the Company's
ability to introduce new products; the Company's ability to implement the
planned capacity expansion of corrugate medium paper; market acceptance of new
products; general economic and business conditions; the ability to attract or
retain qualified senior management personnel and research and development
staff; and other risks detailed in the Company's filings with the Securities
and Exchange Commission. These forward-looking statements involve known and
unknown risks and uncertainties and are based on current expectations,
assumptions, estimates and projections about the companies and the industry.
The Company undertakes no obligation to update forward-looking statements to
reflect subsequent occurring events or circumstances, or to changes in its
expectations, except as may be required by law. Although the Company believes
that the expectations expressed in these forward looking statements are
reasonable, it cannot assure you that its expectations will turn out to be
correct, and investors are cautioned that actual results may differ materially
from the anticipated results.

SOURCE Orient Paper, Inc.

Website: http://www.orientpaperinc.com
Contact: Orient Paper, Inc., +1-562-818-3817, ir@orientpaperinc.com or
FleishmanHillard, +852-2530-0228, ir@orientpaperinc.com
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