Orient Paper, Inc. Announces Unaudited Preliminary Results for Third Quarter
BAODING, China, Oct. 29, 2013
BAODING, China, Oct. 29, 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 third quarter ended September 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
third quarter ended September 30, 2013 after market closes on Tuesday,
November 12, 2013.
Preliminary Third Quarter 2013 Selected Unaudited Financial Results Highlights
3Q13 3Q12 Change
Revenue (US$ million) 37.7 37.7 0.1%
Revenue excluding PM1* 37.7 30.8 22.4%
Sales volume (tonnes)
- Corrugating Medium Paper ("CMP") 66,472 66,955 -0.7%
- CMP excluding PM1* 66,472 47,091 41.2%
- Offset Printing Paper 17,259 16,295 6.0%
- Digital Photo Paper 407 480 -15.3%
Average selling price/tonne ("ASP")
- CMP $367 $363 1.1%
- Offset Printing Paper $679 $706 -3.8%
- Digital Photo Paper $3,906 $3,865 1.1%
Gross profit (US$ million) 8.4 6.8 23.5%
Net income (US$ million) 5.5 4.4 25.0%
EPS (US$) 0.30 0.24 25.0%
*PM1 suspended operation since December 31, 2012 for modernization
Key Highlights for Third Quarter 2013
oGross profit up 23.5% YoY to US$8.4 million
oNet income up 25.0% YoY US$5.5 million
oConstruction of tissue paper production facility on schedule, installation
of PM8 expected to begin in 4Q13
oDismissal of the Tribank litigation in its entirety by the Federal
Mr. Zhenyong Liu, Chairman and Chief Executive Officer of Orient Paper,
commented, "We are pleased to report that the Company's production continues
to recover steadily this quarter. As PM6 continues its ramp up from the
previous quarter, together with the decline in recycled paper raw material
costs, the Company's overall profitability has made further improvements
despite the prevailing challenges in the current economic environment."
"We are also pleased to report that the Federal District Court has once again
dismissed the litigation brought by Tribank Capital Investment Inc. The
dismissal allows us to fully concentrate in the development of our Wei County
paper production facilities amidst a mild recovery in the stabilizing paper
industry in China," Mr. Liu commented.
In September 2013, MIIT announced the second batch of paper mill closures,
including a total of 67 low-end small paper mills by the end of 2013 at an
aggregate of 1.2 million tonnes. The second batch of production capacity based
in Hebei province that is set to retire is 0.1 million tonne.
The MIIT also unveiled the closure of 274 paper mills with total capacity of
6.35 million tonnes by the end of 2013, including 0.9 million tonne based in
Hebei province, implying a total supply cut of approximately 7-8%.
Orient Paper's management will host a conference call for institutional and
retail investors at 8:30 am U.S. Eastern Time (5:30 am U.S. Pacific Time /
9:30 pm Beijing Time) on Wednesday, November 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:
Hong Kong: 800-903-737
United States: 1-855-500-8701
Passcode: 8592 2367
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
Passcode: 8592 2367
The replay will be archived for fourteen days following the earnings
announcement until November 29, 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.
Contact: Orient Paper, Inc., 1-562-818-3817, firstname.lastname@example.org; or
FleishmanHillard, +852-2530-0228, email@example.com
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