Nov 16, 2010. /Lesprom Network/. Orient Paper, Inc. announced its financial results for the three and nine months ended September 30, 2010. Operating income was $2.7 million in the 3Q 2010, compared to $6.6 million in the 3Q 2009. Net income was $1.8 million in the 3Q 2010, compared to $4.8 million for the three months ended September 30, 2009, company said in a statement received by Lesprom Network. Gross profit was $3.8 million in the 3Q, compared to $7.1 million for the comparable period in 2009. The decrease in gross profit was primarily attributable to the various factors affecting sales revenue in the third quarter. 3Q gross margin was 16.6% compared to 23.3% in the prior year period. Revenue was $23 million in the 3Q, compared to $30.5 million for the same period last year. Revenue was $87.7 million, up 23.9% from the first nine months of 2009. Gross profit was $17.8 million, up 23.3% from gross profit of $14.4 million in the comparable period a year ago. Gross margin was 20.3% compared to 20.4% in the prior year period. Operating income was $14.5 million, up 7.9% from $13.5 million in the first nine months of 2009. Net income was $10.2 million, up 6.8% from $9.6 million in the first nine months of 2009. "Demand for paper products in China remained robust during the third quarter as evidenced by higher average selling prices for our corrugating medium paper and medium-grade offset printing paper products," stated Zhenyong Liu, Chairman and CEO. "Despite the health of our market, we experienced a decline in revenue due to temporary production interruptions. We lost production capacity as we shut down one of our two corrugating medium paper production lines to make way for our new 360,000 tons per year corrugating medium paper production line. In addition, pursuant to the governmental requirements, we removed two old steam boilers in July to replace them with new, more energy-efficient models, which resulted in a loss of steam pressure so production quantities were lowered during the quarter. "We are confident in our business fundamentals and the long term growth outlook of China's paper industry. We expect our business to bounce back to its growth trajectory once the new boilers are fully installed and inspected by the government's environmental protection agency during the fourth quarter of 2010 and we commence production of our new corrugating medium paper production line in the 1Q 2011." Orient Paper, Inc., through its wholly owned subsidiary, Shengde Holdings, Inc., controls and operates Baoding Shengde Paper Co., Ltd., 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.