Orient Paper, Inc. (OTCBB: OPAI) announced their financial numbers for the first quarter of 2008. The company engages primarily in the production and distribution of products such as copy paper, uncoated and coated paper, digital photo paper, plastic paper, kraft paper, graphic design paper, and other paper and related products.
Net revenues for the first quarter of 2008 increased to $13.5 million compared to last year’s first quarter of $8.1 million. The large increase was in relation to demand for the company’s products as a result of the closure of many small paper milling companies because of heightened environmental laws and regulations. The company also launched a successful market expansion plan that increased sales volume in the domestic market.
Gross profit totaled $2.5 million in the first quarter of 2008 with a gross margin of 18.36%; last year’s gross profit was $1.3 million. This positive variance is attributed to an increase in the company’s sales and related pricing, which was greater than the increases noted in related costs during the period. Net income for first quarter of 2008 was $1.4 million, a significant increase from last year’s number of $0.78. Earnings per share increased to $0.04 per diluted share compared to $0.02 per diluted share of last year’s first quarter.
“We are very pleased with our first quarter results. During the quarter, our growth in revenues and the increase in net income, compared to last year’s results, were due to a combination of a strong seller’s market and higher sales volume in three product lines: Corrugated Paper, High-Grade Offset Paper and Mid-Grade Offset Paper. Additionally, the introduction of new product lines resulted in record profits for our company,” said Zhenyong Liu, CEO of Orient Paper.
“In our previous news release, we stated that we have new permits that will enable us to continue to gain market share in China. While our first quarter results are more than satisfactory, we will continue to grow and significantly improve our Company’s bottom line results. Additional growth will be achieved through strengthening our operational foundation through focusing our efforts on issues such as internal cost control, improved logistics coordination, advanced technology import, new product development and an increase in the overall managerial efficiency of the company,” he continued.
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