Orient Paper, Inc. Announces Fourth Quarter and Fiscal Year 2015 Financial Results

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 fourth quarter and fiscal year ended December 31, 2015.

Mr. Zhenyong Liu, Chairman and Chief Executive Officer of Orient Paper, commented, “The rate of economic growth in China has continued to slow down. Additionally, in the fourth quarter, we had to suspend our production from December 14 to December 29, 2015, to comply with an anti-smog governmental mandate. Despite these difficulties, we grew our gross profit by 22.3% for the year ended December 31, 2015. Our sales volumes for light-weight CMP were up 55.6% in 2015. Also, our newly launched tissue paper packaging business generated $1.7 million in sales for the year ended December 31, 2015. Looking ahead, China’s economic growth rate is expected to see a further slow-down. In addition, as the central government ramps up its anti-smog efforts in Beijing and the surrounding provinces, we may be subject to additional government mandated temporary production suspensions. Despite these potential challenges, we anticipate that the sales of our light-weight CMP and tissue paper products will continue to grow because of the strong demand for these products and the closures of small-scale manufacturers.”

•Despite the government mandated temporary production suspension from December 14 to December 29, 2015, revenue increased by 7.4% to $35.1 million, primarily attributable to an increase in sales of offset printing paper and contribution from sales of the newly launched tissue paper products, partially offset by a decrease in sales of regular CMP.
•Gross profit increased by 7.1% to $6.0 million.
•Gross margin slightly decreased to 17.0%, primarily due to the low gross margin for tissue paper products, partially offset by an increase in gross margin for light-weight CMP.
•Earnings before interest, taxes, depreciation and amortization (“EBITDA”) was $7.1 million, an increase of 16.5% from the same period of last year.
•Net income was $2.2 million, or $0.11 per diluted share, both of which remained unchanged from the same period of last year.
•The newly launched tissue paper product business generated revenue of $1.4 million with shipment volume of 1,099 tonnes and average selling price (“ASP”) of $1,313/tonne.

For the fourth quarter of 2015, total revenue increased by $2.4 million, or 7.4%, to $35.1 million from $32.7 million for the same period of the last year.

Total cost of sales increased by $2.0 million, or 7.4%, to $29.1 million for the fourth quarter of 2015, from $27.1 million for the same period of the last year. Cost of sales per tonne was $337 for the fourth quarter of 2015, compared to $349 for the same period of last year. Costs of sales per tonne for regular CMP, light-weight CMP, offset printing paper, tissue paper products, and digital photo paper were, $281, $249, $558, $1,103, and $3,968, respectively, for the fourth quarter of 2015, compared to $311, $279, $577, $nil, and $5,946, respectively, for the same period of last year.

Total gross profit increased by $0.4 million, or 7.1%, to $6.0 million for the fourth quarter of 2015, from $5.6 million for the same period of last year. Total gross margin slightly decreased to 17.0% for the fourth quarter of 2015 from 17.1% for the same period of last year, primarily due to the lower gross margin for tissue paper products, partially offset by increase in gross margin for light-weight CMP.

Gross margin for regular CMP, light-weight CMP, offset printing paper, tissue paper products, and digital photo paper was 15.8%, 27.4%, 16.5%, 16.0% and -53.7%, respectively, for the fourth quarter of 2015, compared to 15.9%, 25.2%, 16.5%, nil, and -93.0%, respectively, for the same period of last year.
more at:  http://www.prnewswire.com/news-releases/orient-paper-inc-announces-fourth-quarter-and-fiscal-year-2015-financial-results-300240533.html

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