Orient Paper, Inc. announced its unaudited financial results for the 3Q ended September 30, 2017. Revenue decreased by 10.6% to $33.5 million, primarily attributable to a decrease in overall sales volume and partially offset by an increase in blended average selling prices ("ASPs") particularly for regular CMP and Light-Weight CMP that increased by 59.4% and 47.9%, respectively.
EBITDA decreased by $2 million, or 23.7%, to $6.5 million for the 3Q 2017 from $8.5 million for the same period of last year.
Net income was $1.6 million, or $0.07 per basic and diluted share, for the 3Q 2017, compared to $3 million, or $0.14 per basic and diluted share, for the same period of last year.
Gross profit decreased by 1.5% to $7.2 million. The increase in gross margin was primarily related to CMP as a result of significant increase in ASP.
Zhenyong Liu, Chairman and CEO of Orient Paper, commented, "Our 3Q results continued to be impacted by the government mandated restriction on production. In addition, our production was suspended in September 2017 during the replacement of all of our coal burning boilers with gas boilers in compliance with the latest government regulations. Total sales volume decreased by 36.2% to 61,903 tonnes, leading to a 10.6% decrease in total revenue in the 3Q. Gross margin improved as a result of increase in ASPs for regular CMP and light-weight CMP."
Orient Paper, Inc. is a leading paper manufacturer in North China. Orient Paper produces and distributes three categories of paper products: corrugating medium paper, offset printing paper and tissue paper products.
