Orient Paper Announces Unaudited Preliminary Results for Fourth Quarter and Full Year 2011
BAODING, China, Feb. 16, 2012 /PRNewswire-Asia/ -- Orient Paper, Inc. (AMEX: ONP) ("Orient Paper" or the "Company"), a leading manufacturer and distributor of diversified paper products in northern China, today announced unaudited preliminary results for the three months and full year ended December 31, 2011. The Company plans to release full financial results and file its Form 10-K on or before March 15, 2012 and will hold an earnings conference call to discuss its results.
For the fiscal year ended December 31, 2011, total unaudited revenue increased 21.6% to approximately $150.7 million from $124.0 million in the year ended December 31, 2010. In fiscal year 2011, the Company sold 108,174 tons and 122,320 tons of corrugating medium paper and offset printing paper, respectively, up 0.91% and 8.34% compared to fiscal 2010, respectively. In addition, the average selling prices of the Company's corrugating medium paper and offset printing paper products rose 24.93 % and 8.31 %, respectively, compared to fiscal 2010. The Company expects to report unaudited gross profit of approximately $33.0 million for fiscal year 2011, compared to $26.2 million in fiscal 2010. The Company is expecting unaudited net income to be approximately $21.5 million, or $1.17 per diluted share, up from $15.6 million, or $0.89 per diluted share, in fiscal 2010.
"Our strong financial performance in fiscal 2011 was largely due to robust growth in market demand and favorable pricing trends in 2011. The production launch of our new 360,000 tons corrugating medium paper production line marked an important milestone for Orient Paper in 2011," commented Mr. Zhenyong Liu, Chairman and Chief Executive Officer of Orient Paper.
"In fiscal 2012, we anticipate sizeable revenue growth and profitability driven by our capacity expansion, growing market demand for our products, and tightening regional supply conditions as a result of the PRC government's move toward industry consolidation. Over the next few quarters, we expect to ramp up capacity utilization of our new line, expand our market share, and strengthen our brand recognition in our target markets. We believe our new production line will significantly contribute to our fiscal 2012 revenue growth and profitability," added Mr. Liu.
About Orient Paper, Inc.
Orient Paper, Inc., through its wholly owned subsidiary, Shengde Holdings, Inc., controls and operates Baoding Shengde Paper Co., Ltd. ("Baoding Shengde"), and Hebei Baoding Orient Paper Milling Co., Ltd ("HBOP"). Founded in 1996, HBOP is engaged in the production and distribution of products such as corrugating medium paper, offset printing paper, and other paper and packaging-related products in China. The Company uses recycled paper as its primary raw material. Baoding Shengde, founded in June 2009 located in Baoding, is engaged in the production and distribution of digital photo paper. As one of the largest paper producers in Hebei Province, China, HBOP is strategically located in Baoding, a city in close proximity to Beijing where the majority of publishing houses are based. Orient Paper is led by an experienced management team committed to diversifying the Company's product offering and delivering tailored services to its customers. For more information, 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.