April 17, 2018 - 8:45 PM EDT
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Orient Paper, Inc. Announces Fourth Quarter and Fiscal Year 2017 Financial Results

Earnings Conference Call is Scheduled for Wednesday, April 18, 2018, 8:00 am ET

BAODING, China, April 17, 2018 /PRNewswire/ -- Orient Paper, Inc. (NYSE MKT: ONP) ("Orient Paper" or the "Company"), a leading manufacturer and distributor of diversified paper products in North China, today announced its financial results for the fourth quarter and fiscal year ended December 31, 2017.



 For the Three Months Ended December 31, 

 ($ millions) 


2017


2016


 % Change 

 Revenues 


35.4


31.4


12.9%

 Regular Corrugating Medium Paper ("CMP")* 


24.6


18.3


34.8%

 Light-Weight CMP** 


5.2


5.3


-2.5%

 Offset Printing Paper 


5.4


6.5


-16.8%

 Tissue Paper Products 


0.3


1.4


-80.1%

 Digital Photo Paper 


0.0


0.0


-100.0%








 Gross profit 


3.6


7.5


-52.1%

 Gross margin 


10.2%


24.0%


-13.8 pp

 Regular Corrugating Medium Paper ("CMP")* 


8.9%


23.2%


-14.3 pp

 Light-Weight CMP** 


10.0%


28.8%


-18.9 pp

 Offset Printing Paper 


16.5%


25.1%


-8.6 pp

 Tissue Paper Products 


5.8%


11.0%


-5.3 pp

 Digital Photo Paper 


NA


-58.8%


NM








 Operating income (loss) 


-1.7


4.6


-136.2%

 Net income (loss) 


-1.6


3.1


-153.1%

 EBITDA 


2.0


8.3


-75.3%

 Basic and Diluted earnings (loss) per share 


-0.08


0.14


-153.1%








 * Products from PM6 







 ** Products from PM1 







 *** pp represents percentage points 







Revenue increased by 12.9% to $35.4 million, primarily due to increase in average selling prices ("ASPs") and partially offset by decreases in sales volumes across all product categories.

  • Gross profit decreased by 52.1% to $3.6 million. Gross margin decreased by 13.8 percentage points to 10.2%. The decrease in gross margin was across all product categories.
  • Net loss was $1.6 million, or loss per share of $0.08, compared to net income of $3.1 million, or earning per share of $0.14, for the same period of the prior year. The Company booked loss on impairment of assets of $2.3 million in the fourth quarter of 2017.
  • Earnings before interest, taxes, depreciation and amortization ("EBITDA") decreased by 75.3% to $2.0 million.

"Revenue increased by 12.9% to $35.4 million for the fourth quarter of 2017, benefitted from an increase of 35.8% in blended ASP and partially offset by a decrease of 16.9% in overall sales volume," said Zhenyong Liu, Chairman and Chief Executive Officer of Orient Paper.

Mr, Liu continued, "As previously announced, the Company temporarily suspended its production in January 2018 due to a government-mandated restriction on the natural gas supply, which is the energy resource we need for production. As of March 14, 2018, the company resumed production at its manufacturing facilities. As a result of the temporary suspension of production, we expect revenue to be significantly impacted in the first quarter of 2018."

Fourth Quarter 2017 Financial Results

Revenue

For the fourth quarter of 2017, total revenue increased by $4.1 million, or 12.9%, to $35.4 million from $31.4 million for the same period of the prior year. The increase in total revenue was mainly due to increase in ASP and partially offset by decreases in sales volume across all product categories. Production of tissue paper was suspended in September and October for the replacement of coal boilers, and began intermittent production in the following months. In addition, we decreased the production volume of regular CMP, light-Weight CMP and offset printing paper and sales of these products due to environmental conditions in Northern China. The government strengthened its pollution control and rectification measures, resulting in restrictions on production in the manufacturing industry. As a result, the production volume of regular CMP, light-Weight CMP and offset printing paper and sales of these products decreased in the fourth quarter of 2017 as compared to the same period of the prior year. The following table summarizes revenue, volume and ASP by product for the fourth quarter of 2017 and 2016, respectively:

Revenue from CMP, including both regular CMP and light-Weight CMP, increased by $6.2 million, or 26.5%, to $29.8 million and accounted for 84.1% of total revenue for the fourth quarter of 2017, compared to $23.6 million, or 75.1%, of total revenue for the same period of the prior year. The Company sold 53,705 tonnes of CMP at an ASP of $555/tonne in the fourth quarter of 2017, compared to 60,701 tonnes at an ASP of $388/tonne in the same period of the prior year.

Of the total CMP sales, revenue from regular CMP increased by $6.4 million, or 34.8%, to $24.6 million, resulting from sales of 44,411 tonnes at an ASP of $555/tonne, during the fourth quarter of 2017, compared to revenue of $18.3 million, resulting from sales of 47,338 tonnes at an ASP of $386/tonne, during the same period of the prior year. Revenue from light-weight CMP decreased by $0.1 million, or 2.5%, to $5.2 million, resulting from sales of 9,294 tonnes at an ASP of $554/tonne for the fourth quarter of 2017, compared to revenue of $5.3 million, resulting from sales of 13,363 tonnes at an ASP of $395/tonne for the same period of the prior year.

Revenue from offset printing paper decreased by $1.1 million, or 16.8%, to $5.4 million for the fourth quarter of 2017, from $6.5 million for the same period of the prior year. The Company sold 6,512 tonnes of offset printing paper at an ASP of $826/tonne in the fourth quarter of 2017, compared to 10,815 tonnes at an ASP of $598/tonne in the same period of the prior year.

Revenue from tissue paper products decreased by $1.1 million, or 80.1%, to $0.3 million for the fourth quarter of 2017, from $1.4 million for the same period of the prior year. The Company sold 185 tonnes of tissue paper products at an ASP of $1,456/tonne in the fourth quarter of 2017, compared to 1,129 tonnes at an ASP of $1,201/tonne in the same period of the prior year.

We had no revenue from digital photo paper for the fourth quarter of 2017 and for the same period of the prior year. In June 2016, we suspended the production of digital photo paper due to low market demand for our products and are now upgrading the production line to produce more competitive products. We expect to resume our digital photo paper production in the near future.

Gross Profit and Gross Margin

Total cost of sales increased by $8.0 million, or 33.5%, to $31.8 million for the fourth quarter of 2017, from $23.8 million for the same period of the prior year. Cost of sales per tonne was $527 for the fourth quarter of 2017, compared to $328 for the same period of the prior year. The increase in overall cost of sales per tonne was mainly attributable to the higher average unit purchase costs of recycled paper board, cost of recycled white scrap paper and additional subsidies to the labors during the production restriction, and partially offset by the use of natural gas and liquefied gas to replace coal into the production. Costs of sales per tonne for regular CMP, light-weight CMP, offset printing paper, and tissue paper products were, $505, $499, $690, and $1,373, respectively, for the fourth quarter of 2017, compared to $296, $281, $448, and $1,068, respectively, for the same period of the prior year.

Total gross profit decreased by $3.9 million, or 52.1%, to $3.6 million for the fourth quarter of 2017, from $7.5 million for the same period of the prior year. Overall gross margin was 10.2% for the fourth quarter of 2017, compared to 24.0% for the same period of the prior year. Gross margins for regular CMP, light-weight CMP, offset printing paper, and tissue paper products were 8.9%, 10.0%, 16.5%, and 5.8%, respectively, for the fourth quarter of 2017, compared to 23.2%, 28.8%, 25.1%, and 11.0%, respectively, for the same period of the prior year.

Selling, General and Administrative Expenses

Selling, general and administrative expenses ("SG&A") increased by $0.3 million, or 9.3%, to $3.0 million for the fourth quarter of 2017 from $2.7 million for the same period of the prior year. As a percentage of total revenue, SG&A was 8.4% for the fourth quarter of 2017, compared to 8.7% for the same period of the prior year.

Loss on Impairment of Assets

The Company booked loss on impairment of assets of $2.3 million in the fourth quarter of 2017, compared to $nil in the same period of the prior year.

Income (loss) from Operations

Loss from operations was $1.7 million for the fourth quarter of 2017, compared to income from operations of $4.6 million for the same period of the prior year. Operating loss margin was 4.7% for the fourth quarter of 2017, compared to operating income margin of 14.8% for the same period of the prior year.

Net Income (loss)

Net loss was $1.6 million, or $0.08 per loss basic and diluted share, for the fourth quarter of 2017, compared to net income of $3.1 million, or earnings per basic and diluted share of $0.14, for the same period of the prior year.

EBITDA

EBITDA decreased by $6.2 million, or 75.3%, to $2.0 million for the fourth quarter of 2017 from $8.3 million for the same period of the prior year.

Note 1: Non-GAAP Financial Measures

In addition to our U.S. GAAP results, this press release includes a discussion of EBITDA, a non-GAAP financial measure as defined by the Securities and Exchange Commission ("SEC"). The Company defines EBITDA as net income before interest, income taxes, depreciation and amortization. EBITDA is a key measure used by management to evaluate our results and make strategic decisions. Management believes this measure is useful to investors because it is an indicator of operational performance. Because not all companies use identical calculations, the Company's presentation of EBITDA may not be comparable to similarly titled measures of other companies, and should not be viewed as an alternative to measures of financial performance or changes in cash flows calculated in accordance with the U.S. GAAP.

Reconciliation of Net Income to EBITDA

(Amounts expressed in US$)



 For the Three Months Ended December 31, 

 ($ millions) 

2017


2016

 Net income 

-1.6


3.1

 Add: Income tax 

-0.4


1.0

         Net interest expense 

0.4


0.5

         Depreciation and amortization 

3.7


3.6

 EBITDA 

2.0


8.3

 

 

Full Year 2017 Financial Results



 For the Twelve Months Ended December 31, 

 ($ millions) 


2017


2016


 % Change 

 Revenues 


117.0


134.7


-13.2%

 Regular Corrugating Medium Paper ("CMP")* 


80.4


77.9


3.2%

 Light-Weight CMP** 


15.6


16.7


-6.8%

 Offset Printing Paper 


18.7


33.4


-44.0%

 Tissue Paper Products 


2.4


6.1


-61.2%

 Digital Photo Paper 


0.0


0.7


-100.0%








 Gross profit 


20.0


25.5


-21.8%

 Gross margin 


17.1%


18.9%


-1.9 pp

 Regular Corrugating Medium Paper ("CMP")* 


16.9%


17.1%


-0.2 pp

 Light-Weight CMP** 


18.9%


25.5%


-6.5 pp

 Offset Printing Paper 


17.3%


22.7%


-5.4 pp

 Tissue Paper Products 


6.4%


11.8%


-5.4 pp

 Digital Photo Paper 


NA


-58.7%


NM








 Operating income 


4.7


13.0


-63.9%

 Net income 


1.7


7.3


-77.2%

 EBITDA 


19.4


28.3


-31.6%

 Basic and Diluted earnings per share 


0.08


0.34


-76.5%








 * Products from PM6 







 ** Products from PM1 







 *** pp represents percentage points 







Revenue

For the year ended December 31, 2017, total revenue decreased by $17.7 million, or 13.2%, to $117.0 million from $134.7 million for 2016. The decrease in total revenue was mainly decreases in sales volume across all product categories and partially offset by a moderate increase in blended ASP. Production of tissue paper was suspended in September and October for the replacement of coal boilers, and began intermittent production in the following months. In addition, we decreased the production volume of regular CMP, light-Weight CMP and offset printing paper and sales of these products due to environmental conditions in Northern China. The government strengthened its pollution control and rectification measures, resulting in restrictions on production in the manufacturing industry. As a result, the production volume of regular CMP, light-Weight CMP and offset printing paper and sales of these products decreased in 2017 as compared to 2016. The following table summarizes revenue, volume and ASP by product for 2017 and 2016, respectively:


 For the Twelve Months Ended December 31, 


2017


2016


 Revenue
($'000) 


 Volume
(tonne) 


 ASP
($/tonne) 


 Revenue
($'000) 


 Volume
(tonne) 


 ASP
($/tonne) 

 Regular CMP 

80,379


173,399


464


77,889


230,382


338

 Light-Weight CMP 

15,600


33,690


463


16,736


47,841


350

 Offset Printing Paper 

18,688


26,610


702


33,391


52,255


639

 Tissue Paper Products 

2,357


1,804


1,306


6,071


4,917


1,235

 Digital Photo Paper 

-


-


-


657


372


1,767

 Total 

117,024


235,503


497


134,745


335,767


401

Revenue from CMP, including both regular CMP and light-Weight CMP, increased by $1.4 million, or 1.4%, to $96.0 million, and accounted for 82.0% of total revenue for 2017, compared to $94.6 million, or 70.2% of total revenue for 2016. The Company sold 207,089 tonnes of CMP at an ASP of $463/tonne in 2017, compared to 278,223 tonnes at an ASP of $340/tonne in 2016.

Of the total CMP sales, revenue from regular CMP increased by $2.5 million, or 3.2%, to $80.4 million, resulting from sales of 173,399 tonnes at an ASP of $464/tonne, for 2017, compared to revenue of $77.9 million, resulting from sales of 230,382 tonnes at an ASP of $338/tonne for 2016. Revenue from light-weight CMP decreased by $1.1 million, or 6.8%, to $15.6 million, resulting from sales of 33,690 tonnes at an ASP of $463/tonne for 2017, compared to revenue of $16.7 million, resulting from sales of 47,841 tonnes at an ASP of $350/tonne for 2016.

Revenue from offset printing paper decreased by $14.7 million, or 44.0%, to $18.7 million for 2017, from $33.4 million for 2016. The Company sold 26,610 tonnes of offset printing paper at an ASP of $702/tonne in 2017, compared to 52,255 tonnes at an ASP of $639/tonne in 2016.

Revenue from tissue paper products decreased by $3.7 million, or 61.2%, to $2.4 million, for 2017, from $6.1 million for 2016. The Company sold 1,804 tonnes of tissue paper products at an ASP of $1,306/tonne in 2017, compared to 4,917 tonnes at an ASP of $1,235/tonne in 2016.

We had no revenue from digital photo paper for 2017, compared to $0.7 million, resulting from sales of 372 tonnes at an ASP of $1,767/tonne, for 2016. In June 2016, we suspended the production of digital photo paper due to low market demand for our products and are now upgrading the production line to produce more competitive products. We expect to resume our digital photo paper production in the near future.

Gross Profit and Gross Margin

Total cost of sales decreased by $12.1 million, or 11.1%, to $97.1 million for 2017, from $109.2 million for 2016.  This was mainly a result of the decrease in volume sold, partially offset by increase in cost of recycled paper board. Cost of sales per tonne was $412 for 2017, compared to $325 for 2016. The increase in overall cost of sales per tonne was mainly due to higher average unit purchase costs of recycled paper board, cost of recycled white scrap paper and additional subsidies created by the Company to the labors suspending work during the production restriction in September and October 2017 and partially offset by the use of natural gas and liquefied gas to replace coal in the production. Costs of sales per tonne for regular CMP, light-weight CMP, offset printing paper, tissue paper products, and digital photo paper were, $385, $375, $581, $1,222, and $nil, respectively, for 2017, compared to $280, $261, $494, $1,089, and $2,805, respectively, for 2016.

Total gross profit decreased by $5.6 million, or 21.8%, to $20.0 million for 2017, from $25.5 million for 2016. Overall gross margin decreased by 1.9 percentage points to 17.1% for 2017 from 18.9% for 2016. Gross margin for regular CMP, light-weight CMP, offset printing paper, tissue paper products, and digital photo paper was 16.9%, 18.9%, 17.3%, 6.5% and nil, respectively, for 2017, compared to 17.1%, 25.5%, 22.7%, 11.8%, and -58.7%, respectively, for 2016.

Selling, General and Administrative Expenses

Selling, general and administrative expenses ("SG&A") decreased by $1.1 million, or 8.8%, to $11.3 million for 2017, from $12.4 million for 2016. As a percentage of total revenue, SG&A was 9.7% for 2017, compared to 9.2% for 2016. The expenses were higher in 2016 because the Company issued 1,133,916 shares of common stock, valued at $1,417,395, pursuant to the Company's compensatory incentive plans in January 2016.

Loss on Impairment of Assets

The Company booked loss on impairment of assets of $2.3 million in 2017, compared to $nil in 2016.

Income from Operations

Income from operations decreased by $8.3 million, or 63.9%, to $4.7 million for 2017 from $13.0 million for 2016. Operating margin was 4.0% for 2017, compared to 9.6% for 2016.

Net Income (loss)

Net income was $1.7 million, or $0.08 per basic and diluted share, for 2017, compared to $7.3 million, or $0.34 per basic and diluted share, for 2016.

EBITDA

EBITDA decreased by $8.9 million, or 31.6%, to $19.4 million for 2017, from $28.3 million for 2016.

Note 2: Non-GAAP Financial Measures

In addition to our U.S. GAAP results, this press release includes a discussion of EBITDA, a non-GAAP financial measure as defined by the Securities and Exchange Commission ("SEC"). The Company defines EBITDA as net income before interest, income taxes, depreciation and amortization. EBITDA is a key measure used by management to evaluate our results and make strategic decisions. Management believes this measure is useful to investors because it is an indicator of operational performance. Because not all companies use identical calculations, the Company's presentation of EBITDA may not be comparable to similarly titled measures of other companies, and should not be viewed as an alternative to measures of financial performance or changes in cash flows calculated in accordance with the U.S. GAAP.

Reconciliation of Net Income to EBITDA

(Amounts expressed in US$)



 For the Twelve Months Ended December 31, 

 ($ millions) 

2017


2016

 Net income 

1.7


7.3

 Add: Income tax 

0.7


3.1

         Net interest expense 

2.4


2.6

         Depreciation and amortization 

14.6


15.3

 EBITDA 

19.4


28.3

Cash, Liquidity and Financial Position

As of December 31, 2017, the Company had cash and cash equivalents, short-term debt (including related party loan), current capital lease obligations, notes payable and long-term debt (including related party loans) of $2.9 million, $7.2 million, $nil, $6.1 million and $11.9 million, respectively, compared to $2.3 million, $5.1 million, $8.8 million, $2.2 million and $14.9 million, respectively, at the end of 2016. Net accounts receivable was $1.8 million as of December 31, 2017, compared to $3.9 million as of December 31, 2016. Net inventory was $8.5 million as of December 31, 2017, compared to $5.6 million at the end of 2016. As of December 31, 2017, the Company had a net working capital deficit of $1.8 million, compared to $6.1 million at the end of 2016.

Net cash provided by operating activities was $18.2 million for 2017, compared to $15.3 million for 2016. Net cash used in investing activities was $9.3 million for 2017, compared to $11.5 million for 2016. Net cash used by financing activities was $8.6 million for 2017, compared to $3.7 million for 2016.

Recent Development

In late January, 2018, the Company temporarily suspended its production due to a government-mandated restriction on the natural gas supply, which is the energy resource we need for production. Since March 14, 2018, the company has resumed production at its manufacturing facilities. Therefore, the Company's revenues in the first quarter ended March 31, 2018 and the year ended December 31, 2018 are expected to be significantly impacted.

Earnings Conference Call

The Company's management will host a conference call to discuss its fourth quarter and fiscal year 2017 financial results at 8:00 am US Eastern Time (5:00 am US Pacific Time/ 8:00 pm Beijing Time) on Wednesday, April 18, 2018.

To attend the conference call, please dial-in using the information below. When prompted upon dialing-in, please provide the conference ID or ask for the "Orient Paper Fourth Quarter and Fiscal Year 2017 Earnings Conference Call."

Conference Call


Date:                                                

Wednesday, April 18, 2018

Time:

8:00 am ET (5:00 am US Pacific Time/ 8:00 pm Beijing Time)

International Toll Free:

United States: +1-855-500-8701

Mainland China: 400-120-0654

Hong Kong: 800-906-606

International: +65-6713-5440

Conference ID:

7662826

This conference call will be broadcast live over the Internet, and can be accessed by all interested parties at http://www.orientpaperinc.com/ or https://edge.media-server.com/m6/p/z6x2i7e5.

Please access the link at least fifteen minutes prior to the start of the call to register, download, and install any necessary audio software.

A playback will be available through 9:59 ET April 26, 2018. To listen, please dial +1-855-452-5696 if calling from the United States, or +61-290-034-211 if calling internationally. Use the passcode 7662826 to access the replay.

About Orient Paper, Inc.

Orient Paper, Inc. ("Orient Paper") is a leading paper manufacturer in North China. Using recycled paper as its primary raw material (with the exception of its digital photo paper and tissue paper products), Orient Paper produces and distributes three categories of paper products: corrugating medium paper, offset printing paper and tissue paper products.

With production based in Baoding and Xingtai in North China's Hebei Province, Orient Paper is located strategically close to the Beijing and Tianjin region, home to a growing base of industrial and manufacturing activities and one of the largest markets for paper products consumption in the country.

Orient Paper's production facilities are controlled and operated by its wholly owned subsidiary Shengde Holdings Inc., which in turn controls and operates Baoding Shengde Paper Co., Ltd., and Hebei Baoding Orient Paper Milling Co., Ltd.

Founded in 1996, Orient Paper has been listed on the NYSE MKT under the ticker symbol "ONP" since December 2009. (For more information, please visit http://www.orientpaperinc.com)

Safe Harbor Statements

This press release may contain forward-looking statements. These forward-looking statements involve inherent risks and uncertainties that could cause actual results to differ materially from those projected or anticipated, including risks outlined in the Company's public filings with the Securities and Exchange Commission, including the Company's latest annual report on Form 10-K. All information provided in this press release speaks as of the date hereof. Except as otherwise required by law, the Company undertakes no obligation to update or revise its forward-looking statements.

For more information, please contact:

Company Contact:
Orient Paper, Inc.
Email: [email protected]

Investor Relations:
Tony Tian, CFA                 
Weitian Group LLC
Email: [email protected]
Phone: +1-732-910-9692

 

 

ORIENT PAPER, INC.

CONSOLIDATED BALANCE SHEETS

AS OF DECEMBER 31, 2017 AND 2016




December 31,



December 31,



2017



2016

ASSETS
















Current Assets








Cash and bank balances


$

2,895,790



$

2,332,646

Restricted cash



6,121,637




2,162,318

Accounts receivable (net of allowance for doubtful accounts of $37,626 and $79,478
as of December 31, 2017 and 2016, respectively)



1,843,682




3,894,436

Inventories



8,474,165




5,632,030

Prepayments and other current assets



651,523




455,892









Total current assets



19,986,797




14,477,322









Property, plant, and equipment, net



189,388,709




187,689,880

Value-added tax recoverable



3,041,416




2,945,575

Deferred tax asset non-current



6,572,559




3,264,841









Total Assets


$

218,989,481



$

208,377,618









LIABILITIES AND STOCKHOLDERS' EQUITY
















Current Liabilities








Short-term bank loans


$

7,192,923



$

5,045,409

Current portion of long-term loans from credit union



6,366,502




-

Current obligations under capital lease



-




8,786,528

Accounts payable



422,705




559,952

Advance from customers



-




28,831

Notes payable



6,121,637




2,162,318

Due to a related party



60,378




56,872

Accrued payroll and employee benefits



231,247




209,936

Other payables and accrued liabilities



836,337




2,424,778

Income taxes payable



525,804




1,310,967









Total current liabilities



21,757,533




20,585,591









Loans from credit union



1,193,719




4,843,592

Loans from a related party



10,712,865




10,090,817

Deferred gain on sale-leaseback



-




102,232









Total liabilities (including amounts of the consolidated VIE without recourse to the
Company of $31,235,520 and $35,618,995 as of December 31, 2017 and 2016,
respectively)



33,664,117




35,622,232









Commitments and Contingencies
















Stockholders' Equity








Common stock, 500,000,000 shares authorized, $0.001 par value per share,
21,450,316 shares issuedand outstanding as of December 31, 2017 and 2016,
respectively



21,450




21,450

Additional paid-in capital



50,635,243




50,635,243

Statutory earnings reserve



6,080,574




6,080,574

Accumulated other comprehensive income (loss)



5,468,799




(5,441,391)

Retained earnings



123,119,298




121,459,510









Total stockholders' equity



185,325,364




172,755,386









Total Liabilities and Stockholders' Equity


$

218,989,481



$

208,377,618

 

 

ORIENT PAPER, INC.

CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (LOSS)

FOR THE YEARS ENDED DECEMBER 31, 2017 AND 2016



Year Ended


December 31,


2017



2016








Revenues

$

117,023,578



$

134,744,600








Cost of sales


(97,067,627)




(109,212,717)








Gross Profit


19,955,951




25,531,883








Selling, general and administrative expenses


(11,307,395)




(12,401,858)

Loss on impairment of assets


(2,291,027)




-

Loss from disposal of property, plant and equipment


(1,677,262)




(178,306)















Income from Operations


4,680,267




12,951,719








Other Income (Expense):







Interest income


34,590




96,976

Subsidy income


41,529




-

Interest expense


(2,433,770)




(2,621,147)








Income before Income Taxes


2,322,616




10,427,548








Provision for Income Taxes


(662,828)




(3,114,572)








Net Income


1,659,788




7,312,976








Other Comprehensive Income (Loss)







Foreign currency translation adjustment


10,910,190




(11,784,410)








Total Comprehensive Income (Loss)

$

12,569,978



$

(4,471,434)








Earnings Per Share:














Basic and Diluted Earnings per Share

$

0.08



$

0.34















Outstanding – Basic and Diluted


21,450,316




21,416,143

 

 

ORIENT PAPER, INC.

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY

FOR THE YEARS ENDED DECEMBER 31, 2017 AND 2016
















Accumulated















Additional



Statutory



Other









Common Stock



Paid-in



Earnings



Comprehensive



Retained






Shares



Amount



Capital



Reserve



Income (loss)



Earnings



Total

Net income for the year of 2016























7,312,976




7,312,976

Balance at December 31, 2016



21,450,316



$

21,450



$

50,635,243



$

6,080,574



$

(5,441,391)



$

121,459,510



$

172,755,386





























Foreign currency translation adjustment



















10,910,190








10,910,190

Net income for the year of 2017























1,659,788




1,659,788

Balance at December 31, 2017



21,450,316



$

21,450



$

50,635,243



$

6,080,574



$

5,468,799



$

123,119,298



$

185,325,364

  

 

ORIENT PAPER, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED DECEMBER 31, 2017 AND 2016




Year Ended



December 31,



2017



2016









Cash Flows from Operating Activities:








Net income


$

1,659,788



$

7,312,976

Adjustments to reconcile net income to net cash provided by
operating activities:








Depreciation and amortization



14,633,780




15,287,509

Loss from impairment and disposal of property, plant and
equipment



3,968,289




178,306

(Recovery from) Allowance for bad debts



(45,309)




44,938

Share-based compensation expenses



-




1,417,395

Deferred tax



(3,010,577)




(1,959,494)

Changes in operating assets and liabilities:








Accounts receivable



2,265,428




(2,246,882)

Prepayments and other current assets



(79,264)




1,410,080

Inventories



(2,417,942)




3,112,465

Accounts payable



(166,464)




336,507

Advance from customers



(29,663)




26,173

Notes payable



3,707,933




(11,273,279)

Due to a related party



-




(300,621)

Accrued payroll and employee benefits



8,111




(300,275)

Other payables and accrued liabilities



(1,503,275)




1,509,196

Income taxes payable



(839,047)




722,528

Net Cash Provided by Operating Activities



18,151,788




15,277,522









Cash Flows from Investing Activities:








Purchases of property, plant and equipment



(9,380,702)




(11,586,214)

Proceeds from sale of property, plant and equipment



59,066




41,185









Net Cash Used in Investing Activities



(9,321,636)




(11,545,029)









Cash Flows from Financing Activities:








Proceeds from related party loans



-




3,020,208

Repayments of related party loans



-




(6,026,416)

Proceeds from short term bank loans



12,903,609




6,463,347

Proceeds from credit union loans



2,373,077




-

Repayment of bank loans



(11,153,463)




(14,730,418)

Payment of capital lease obligation



(9,040,260)




(675,139)

(Increase in) Release of restricted cash



(3,707,933)




8,267,072









Net Cash Used in Financing Activities



(8,624,970)




(3,681,346)









Effect of Exchange Rate Changes on Cash and Cash
Equivalents



357,962




(360,418)









Net Increase (Derease) in Cash and Cash Equivalents



563,144




(309,271)









Cash and Cash Equivalents - Beginning of Year



2,332,646




2,641,917









Cash and Cash Equivalents - End of Year


$

2,895,790



$

2,332,646









Supplemental Disclosure of Cash Flow Information:








Cash paid for interest, net of capitalized interest cost


$

2,103,340



$

2,414,458

Cash paid for income taxes


$

4,512,453



$

4,351,538

















Cash and bank balances



2,895,790




2,332,646

Restricted cash



6,121,637




2,162,318

Total cash, cash equivalents and restricted cash shown in
the statement of cash flows



9,017,427




4,494,964

 




Cision View original content:http://www.prnewswire.com/news-releases/orient-paper-inc-announces-fourth-quarter-and-fiscal-year-2017-financial-results-300631851.html

SOURCE Orient Paper, Inc.


Source: PR Newswire (April 17, 2018 - 8:45 PM EDT)

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