Orient Paper reported 45.6% decrease of EBITDA amid 40% revenues decrease in 2Q2017 y-o-y. According to the announcement, the company’s revenues accounted for USD 22.8 million, generating EBITDA of USD 4.4 million (19.3% margin) in the period.
Mr. Zhenyong Liu, Chairman and CEO of Orient Paper, commented:
“Our second quarter results were impacted to a large extent by a temporary government mandated restriction on production that has been in place since November 2016. Total sales volume decreased by 42.5% to 55,069 tonnes, the lowest level since the first quarter of 2013, leading to a 40.0% decrease in total revenue in the second quarter. Our margins also deteriorated as a result of increases in unit costs of recycled paper board, recycled white scrap paper, and coal that increased by 34.0%, 17.5%, and 56.9% year-over-year, respectively. Looking ahead, we expect that the prices for our major products to remain relatively stable at current levels. However, the temporary government mandated production restrictions/suspensions that are enacted from time to time continue to pose risks and uncertainties to our business.”
Earlier Orient Paper announced that its independent registered public accounting firm included a going concern qualification in its audit opinion relating to the company’s audited consolidated financial statements for the fiscal year ended December 31, 2015.
About Orient Paper, Inc:
The company is a leading paper manufacturer in North China. Using recycled paper as its primary raw material, Orient Paper produces and distributes three categories of paper products: corrugating medium paper, offset printing paper, and other paper products, including digital photo paper.