Mar 11, 2013. /Lesprom Network/. Orient Paper, Inc. announced preliminary unaudited financial results for the 4Q and full year 2012 ended December 31, 2012. As the Company has entered into negotiations for a potential sale of the land and buildings of its headquarters compound, the full audited financial results and annual report Form 10-K will be filed on or before March 18 2013, which is the deadline for submission to the Securities and Exchange Commission. The outcome of this negotiation is not expected to have a material impact on the Company's 4Q and full year 2012 results. Total revenue in the 4Q 2012 was $43.5 million, increased 11.9% from $38.9 million. Gross profit in the 4Q 2012 was $6.7 million, down 20.0% from $8.4 million for the 4Q 2011. The decline was mainly due to the falling average selling prices of the offset printing paper and CMP. Excluding the impact of interest expenses, income tax expenses, depreciation and amortization, EBITDA, a non-GAAP measurement, was $5.2 million, down 40.9% from $8.7 million. Net income was $2 million, down 63.6% from $5.5 million. Basic and diluted earnings per share for the 4Q 2012 were $0.11 compared to $0.30 for the corresponding period of 2011. Weighted average shares used in the calculation of diluted earnings per share were 18,459,775 in the 4Q 2012 compared to 18,350,186 in the corresponding period of 2011. Mr. Zhenyong Liu, Chairman and CEO of Orient Paper, commented, "2012 has been a difficult year for the paper industry in China and product prices have been weak for the most part. As we disclosed to the market in previous quarters, there were also operational disruptions back in the second and early third quarters that have all been resolved. We have also successfully begun the ramp-up of our new CMP line, which boosted our sales volume by 154% in the 4Q, and we will continue to accelerate this ramp up for 2013." "As China continues to develop, we see a sustainable long term growth demand for paper, and prospects remain bright for Orient Paper, particularly in North China, where we have strengthened our cost-leadership position. With CMP as our core business, we have just begun the renovation of our legacy 150,000 tonne-per-year-line in anticipation of increased regulatory concerns on energy efficiencies and to further upgrade the quality of our CMP products. The renewal program will provide us with an increased annual capacity of 250,000 tonnes upon completion next year. As a result, the Company has made a provision of a one-off impairment loss of $2.8 million for 2012 in anticipation of this renovation," continued Mr. Liu. Orient Paper, Inc. is a leading paper manufacturer in North China. Using recycled paper as its primary raw material, Orient Paper produces and distributes three types of paper products namely, packaging paper (corrugating medium paper), offset printing paper, and other paper products, including digital photo paper, and household/tissue paper that the company is currently expanding into.