OREANDA-NEWS. August 20, 2013. China Shengda Packaging Group Inc. reported its 2Q financial results for the three months ended June 30, 2013.

Total revenues for the 2Q 2013 decreased by USD3.2 million, or 8.6%, to USD 33.5 million from \\$ USD 36.7 million for the same period of 2012, as the company said in the press release received by Lesprom Network.

Gross profit decreased by USD 1.1 million, or 17.5%, to USD 4.8 million for the 2Q 2013, from USD 5.9 million for the same period of 2012. The decrease in gross profit was mainly due to decline in paper cartons sales volume and negative gross profit of (USD 0.7) million for raw paper. Gross margin decreased by 155 basis points to 14.4% for the 2Q 2013 from 16% for the same period of 2012.

Net income attributable to the Company's stockholders decreased by USD 0.9 million, or 54.2%, to approximately USD 0.8 million for the 2Q 2013 from USD 1.7 million for the same period of 2012. Basic and diluted earnings per share were USD 0.02 for the 2Q 2013, as compared to \\$0.04 for the same period of 2012.

Mr. Daliang Teng, CEO of China Shengda Packaging Group commented, "Our revenues for the three months ended June 30, 2013 declined to USD 33.5 million from USD 36.7 million for the same period of last year, mainly due to the decline in paper cartons sales volume and partially offset by USD 0.7 million in revenues from the newly completed paper mill which went into production on June 17, 2013. The decline in paper cartons sales volume was mainly a result of continued challenges in light of China's slowing GDP growth trend. Looking ahead, we expect our continued ramp-up of the paper mill to contribute meaningfully to our revenues and to partially offset the weakness in our packaging business."

Total revenues for the six months ended June 30, 2013 decreased by USD 4.5 million, or 7.0%, to USD 60.6 million from USD 65.1 million for the same period of 2012.

Gross profit decreased by USD 1.2 million, or 10.6%, to USD 10.1 million for the six months ended June 30, 2013, from USD 11.3 million for the same period of 2012. The decrease in gross profit was mainly due to decline in paper cartons sales volume and negative gross profit of (USD 0.7) million for raw paper. Gross margin dropped by 67 basis points to 16.7% for the six months ended June 30, 2013 from 17.4% for the same period of 2012.

Net income attributable to the Company's common stockholders decreased by USD 1.6 million, or 49%, to USD 1.6 million for the six months ended June 30, 2013, from USD 3.2 million for the same period of 2012. Basic and diluted earnings per share were USD 0.04 for the six months ended June 30, 2013, as compared to USD 0.08 for the same period of 2012.

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