Bookmark and Share

Orient Paper (ONP) Announces Preliminary Second Quarter 2010 Financial Results

BAODING, China, July 29 /PRNewswire-Asia-FirstCall/ — Orient Paper, Inc. (AMEX:ONP.aNews) (“Orient Paper” or the “Company”), a leading manufacturer and distributor of diversified paper products in Hebei, China, today announced unaudited preliminary results for the three months ended June 30, 2010. The Company will release full financial results prior to filing its Form 10-Q on or before August 16, 2010 and will hold an earnings conference call to discuss those results.

For the three months ended June 30, 2010, the Company is expecting to report total unaudited revenue increased 70.8%, to approximately $38.3 million from approximately $22.4 million in the same period last year. The Company is also expecting unaudited net income to be approximately $5.0 million, or $0.28 per diluted share, up 102.5% from approximately $2.5 million, or $0.20 per diluted share, for the same period last year.

Mr. Zhenyong Liu, Chairman and Chief Executive Officer, stated, “Our increased second quarter sales were mainly attributable to a combination of factors, including increased average selling prices in our corrugating medium paper and medium-grade offset printing paper products due to the general increase in paper and pulp pricing in the market during the second quarter of 2010, and the increased sales volume of our medium-grade offset printing paper product. In addition, we continued to grow our digital photo paper sales during the second quarter. Our net income growth was attributable to our strong sales growth and our ability to achieve higher gross and operating margins during the quarter. Overall, we are pleased with our preliminary second quarter sales and earnings results and look forward to reporting our full financial results next month.”

About Orient Paper, Inc.

Orient Paper, Inc., through its wholly owned subsidiaries, 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, writing 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.orientalpapercorporation.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 corrugated 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.

Thursday, July 29th, 2010 Uncategorized
Top Small Cap Market News