Orient Paper, Inc., a leading manufacturer and distributor of diversified paper products in northern China, today announced financial results for the first quarter ended March 31, 2012.
For the quarter ended March 31, 2012, revenue was $34.4 million, an increase of 3.6% from $33.2 million during the same period in 2011.
Revenue from corrugating medium paper was $19.1 million in the first quarter of 2012, representing an increase of 123.7% compared to $8.5 million in the year ago period. The Company sold a total of 45,391 tonnes of corrugating medium paper during the first quarter of 2012, up 104.9% compared to the year ago period.
Since December 2011, Orient Paper began selling corrugating medium paper produced from its new 360,000 tonnes paper production line. Of the total corrugating medium paper sold during the first quarter, 26,978 tons, or 59.4%, were produced from the Company's new production line. The ASPs for corrugating medium paper rose 9.1% year over year to $420/ton in the first quarter of 2012.
Revenue from medium-grade offset printing paper was $13.8 million for the three months ended March 31, 2012, down 38.9% from $22.5 million for the comparable period in 2011. The Company sold a total of 17,831 tonnes of offset printing paper during the first quarter of 2012, down 37.9% compared to the year ago period. The ASP of offset printing paper products decreased 1.8% from $786/ton in the first quarter of 2011 to $772/ton in the first quarter of 2012. The Company experienced lower tonnage sales of offset printing paper after January 2012 due to temporary suspension of offset printing paper trading, which suffered from a lower gross profit margin as a result of decline in ASP during the first quarter of 2012.
Revenue from the Company's digital photo paper products decreased 26.9% year over year to $1.6 million, or 4.6% of total revenue during the first quarter of 2012. We believe the decline in revenue was primarily due to a temporary slowdown in demand around the extended national holiday. In the first quarter of 2012, the Company sold a total of 398 tons of digital photo paper compared with 527 tons sold in the first quarter of 2011.