OREANDA-NEWS. May 17, 2012. China Shengda Packaging Group Inc. announced its financial results for the three months ended March 31, 2012.

"This quarter was marked by difficult market conditions as our customers experienced slow growth in their businesses. We fought hard for business but lost some volume compared to the same quarter last year. Pricing conditions enabled us to pass on some increased costs to customers but margins were still reduced by lower volumes and lower operating leverage," said Daliang Teng, CEO of China Shengda Packaging, said.

Revenues increased 5.7% to USD 28.5 million from USD 26.9 million in the prior year period. The increase was primarily as a result of the increase in average per square meter prices, partially offset by the decrease in sales volume.

Sales volume decreased by 1 million square meters, or 1.4%, to 72.6 million square meters for the three months ended March 31, 2012, from 73.6 million square meters for the same period of 2011. The decreased sales volume was mainly the result of a reduction in demand from customers due to challenges resulting from domestic and foreign economic environment, which adversely affected the business of many customers.

China Shengda Packaging Group Inc. is a leading paper packaging company in China. It is principally engaged in the design, manufacturing and sale of flexo-printed and color-printed corrugated paper cartons in a variety of sizes and strengths. It also manufactures corrugated paperboards, which are used for the production of its flexo-printed and color-printed cartons.