Orient Paper, Inc. Announces First Quarter 2017 Financial Results

BAODING, China, May 10, 2017

BAODING, China, May 10, 2017 /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 audited financial results for the first quarter ended March 31, 2017.

"Our revenue decreased by 9.4% in the first quarter mainly as a result of a government mandated temporary restriction on production that has been in place since November 2016 that adversely affected our production and sales volume for light-weight corrugating medium paper ("CMP"), offset printing paper and tissue paper. However, margins and profitability improved significantly in the first quarter thanks to continued uptick in average selling price for regular CMP as well as decrease in operating expenses," said Zhenyong Liu, Chairman and Chief Executive Officer of Orient Paper. "While we continue to face the uncertainties of government mandated production restriction/suspension from time to time, we expect the overall price environment to remain relatively stable for the remainder of the year."

First Quarter 2017 Financial Highlights

		For the Three Months Ended March 31,
($ millions)		2017 ARIVA.DE Börsen-Geflüster Kurse IT Tech Packaging 0,2309 $ -1,58%		2016		% Change
Revenues		25.3		27.9		-9.4%
Regular Corrugating Medium Paper ("CMP")*		19.5		15.9		22.4%
Light-Weight CMP**		2.2		3.0		-25.8%
Offset Printing Paper		2.9		7.1		-59.0%
Tissue Paper Products		0.7		1.6		-55.9%
Digital Photo Paper		0.0		0.3		-100.0%
Gross profit		5.7		3.8		50.1%
Gross margin		22.4%		13.5%		8.9 pp
Regular Corrugating Medium Paper ("CMP")*		22.3%		12.4%		9.9 pp
Light-Weight CMP**		23.3%		21.8%		1.5 pp
Offset Printing Paper		25.5%		16.9%		8.6 pp
Tissue Paper Products		7.9%		11.9%		-4.0 pp
Digital Photo Paper		0.0%		-78.0%		78.0 pp
Operating income (loss)		2.9		-0.6		594.8%
Net income (loss)		1.7		-1.4		224.3%
EBITDA		6.5		3.6		80.9%
Basic and Diluted earnings (loss) per share		0.08		-0.06		233.3%
* Products from PM6
** Products from PM1
*** pp represents percentage points

• Revenue decreased by 9.4% to $25.3 million, primarily attributable to decrease in overall sales volume and partially offset by increase in blended average selling prices, particularly for CMP products.
• Gross profit increased by 50.1% to $5.7 million. Gross margin increased by 8.9 percentage points to 22.4%. The increase in gross profit and gross margin were primarily due to increases in gross margins for offset printing paper and Regular CMP.
• Net income was $1.7 million, or $0.08 per diluted share, compared to net loss of $1.4 million, or loss of $0.06 per diluted share, for the same period of the prior year.
• Earnings before interest, taxes, depreciation and amortization ("EBITDA") increased by 80.9% to $6.5 million.

Revenue

For the first quarter of 2017, total revenue decreased by $2.6 million, or 9.4%, to $25.3 million from $27.9 million for the same period of the prior year. The decrease in total revenue was mainly decreases in sales volume for offset printing paper, light-weight CMP and tissue paper products. Due to heavy haze in Northern China, the government has temporarily restricted our production volume since November 2016. We decreased the production volume of offset printing paper, light-weight CMP and tissue paper products and sales of these products were decreased in the first quarter of 2017 accordingly. The following table summarizes revenue, volume and ASP by product for the first quarters of 2017 and 2016:

	For the Three Months Ended March 31,
	2017						2016
	Revenue ($'000)		Volume (tonne)		ASP ($/tonne)		Revenue ($'000)		Volume (tonne)		ASP ($/tonne)
Regular CMP	19,452		47,792		407		15,896		49,002		324 Werbung Mehr Nachrichten zur IT Tech Packaging Aktie kostenlos abonnieren E-Mail-Adresse Bitte überprüfe deine die E-Mail-Adresse. Benachrichtigungen von ARIVA.DE (Mit der Bestellung akzeptierst du die Datenschutzhinweise) -1 Vielen Dank, dass du dich für unseren Newsletter angemeldet hast. Du erhältst in Kürze eine E-Mail mit einem Aktivierungslink. Hinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte. Andere Nutzer interessierten sich auch für folgende News 10:00 - PR Newswire Moonpig Group Plc - Holding(s) in Company 02:00 - PR Newswire FirstGroup Plc - Transaction in Own Shares 02:00 - PR Newswire Kasei Digital Assets Plc - Launch of New Interactive Investor Hub SolarBank    Wie die Revolution der sauberen Energie eine solide Investitionsmöglichkeit bieten könnte weiterlesen» Anzeige wo-site-teaser-box-16755_site-teaser-box_2024-04-25_09%253A00%253A00_2024-04-26_09%253A00%253A59