Orient Paper, Inc. announced its unaudited financial results for the 1Q ended March 31, 2018. For the 1Q 2018, total revenue decreased by $23.4 million, or 92.5%, to $1.9 million from $25.3 million for the same period of the prior year. The decrease in total revenue was mainly due to decreases in sales volume across all product categories and partially offset by an increase in blended ASP.
In late January, 2018, Orient Paper temporarily suspended its production due to government-mandated restrictions on the natural gas supply. The company resumed production on March 14, 2018. As a result, both the production and sales volume decreased significantly in the 1Q 2018.
Net loss was $4.1 million, or net loss of $0.19 per basic and diluted share, for the 1Q 2018, compared to net income of $1.7 million, or net earnings of $0.08 per basic and diluted share, for the same period of the prior year.
EBITDA was negative $0.5 million for the 1Q 2018, compared to $6.5 million for the same period of the prior year.
Mr. Zhenyong Liu, Chairman and CEO of Orient Paper, commented, "Our disappointing 1Q results reflected the impact of a temporary suspension of production due to government-mandated restrictions on the supply of natural gas that lasted for most of the 1Q. However, production at our manufacturing facilities has been back to normal since mid-March and we anticipate a strong rebound in our business in the 2Q."
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.
Source: Lesprom Network