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Orient Paper Announces Unaudited Preliminary Results for Third Quarter Fiscal Year 2011

2011-11-02 20:02 2563

BAODING, China, November 2, 2011 /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 ended September 30, 2011. The Company plans to release full financial results and file its Form 10-Q on or before November 9, 2011 and will hold an earnings conference call to discuss its results.

For the three months ended September 30, 2011, Orient Paper is expecting to report total unaudited revenue increased 61.2% to approximately $37.1 million from $23.0 million in the third quarter of 2010. The year-over-year substantial increase reflects the fact that the Company's revenue and gross profit in the third quarter of 2010 were negatively impacted by the replacement of new boilers and the resulting disruption on production and sales volume. During the third quarter of 2011, the Company sold 55,642 tons of corrugating medium paper and offset printing paper, up 36.3% compared to the same period last year. In addition, the average selling prices of the Company's corrugating medium paper and offset printing paper products rose 31.1% and 12.6%, respectively, compared to the same period last year. The Company expects to report unaudited gross profit of approximately $8.0 million for the third quarter of fiscal year 2011, compared to $3.8 million in the third quarter last year. The Company is expecting unaudited net income to be approximately $5.4 million, or $0.30 per diluted share, up from $1.8 million, or $0.10 per diluted share, for the same period last year.

The Company revised its 2011 guidance with projected revenue for fiscal year 2011 to be between $147 million and $163 million, gross profit of between $32 million and $35 million., However, the Company reaffirmed its guidance for 2011 net income of between $21 million and $23 million, and basic and diluted earnings per share of between $1.16 and $1.28.

Mr. Zhenyong Liu, Chairman and Chief Executive Officer of Orient Paper, stated, "Our strong performance in the third quarter reflects the continued favorable pricing trends. We are currently conducting extensive testing procedures on our new 360,000 tons per year corrugating medium paper production line and expect to begin commercial production in the fourth quarter of 2011. The more extensive testing and troubleshooting period has led us to slightly reduce our revenue forecast for 2011, while tight cost controls on G&A expenses have enabled us to maintain our bottom line target for the year. With the additional production capacity coming on line in the near term and favorable industry dynamics, we expect to ramp up capacity utilization of our new corrugating paper line over the next few quarters."

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, any projections of the Company's third quarter and fiscal year FY 2011 financials, earnings, revenue, margins or other financial items; 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 corrugating 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.

CCG Investor Relations

Crocker Coulson, President

Tel: +1-646-213-1915

Email: crocker.coulson@ccgir.com


Orient Paper, Inc.

Winston Yen, CFO

Phone: +1-562-818-3817

Email: info@orientpaperinc.com



Source: Orient Paper, Inc.
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