OREANDA-NEWS. November 21, 2013. Orient Paper, Inc. announced unaudited financial results for the 3Q ended September 30, 2013. Total revenue in the 3Q 2013 was \\$37.69 million, increased 0.1% from USD 37.65 million, as the company said in the press release received by Lesprom Network.

Gross profit in the 3Q 2013 was \\$8.4 million, up 23.7% from USD 6.8 million for the 3Q 2012. The improvement was mainly due to the decline of raw materials costs.

Overall gross margin in the 3Q 2013 was 22.4%, up from 18.1% for the 3Q 2012.

Income from operations was USD 7.6 million for the 3Q 2013, up 22.8% from USD 6.2 million for the 3Q 2012, primarily due to the increased gross profit margin. Operating margin improved to 20.1% from 16.4% a year ago, as well as 15.8% from the previous quarter.

Excluding the impact of interest expenses, income tax expenses, depreciation and amortization, EBITDA, a non-GAAP measurement, was USD 9.8 million, up 17.7% from USD 8.3 million.

Net income was USD 5.5 million, up 26.4% from USD 4.4 million. Basic and diluted earnings per share for the 3Q 2013 were USD 0.30, compared to USD 0.24 for the corresponding period of 2012.

Chairman and CEO of Orient Paper, Mr. Zhenyong Liu commented, "We are pleased to report that the Company's production continue to recover steadily in the 3Q. The ramp up of PM6 has further accelerated from the previous quarter and achieved a utilization rate of 74%. The decline in recycled paper raw material costs has also improved our profitability, and this was all achieved despite the prevailing challenges in the current economic environment."

Mr. Liu concluded, "Orient Paper remains committed to establish a track record of solid financial performance, and we have revised upwards our full-year guidance for 2013. We are also pleased to announce that the Board of Directors has decided to resume payment of quarterly dividend. This decision was taken in consideration of the Company's expansion plans and financial obligations, which are critical to our long-term success, while rewarding shareholders for their long-term support in Orient Paper, particularly during challenging times like these."

The Company remains cautiously optimistic towards the prospects of the Chinese paper manufacturing sector, while several industry analysts expect a mild recovery in the corrugated medium paper market in the next few quarters.

The Company is adjusting its guidance on most of the financial KPI or metrics, including net income and earnings per share, for the full year of 2013. Revenues for the full year are expected to be in the range of between USD 120 million and USD 132 million, gross profit to be between USD 21 million and USD 23 million, net income to be between USD 11 million and USD 13 million, and basic and diluted earnings per share to be between  USD 0.64 and USD 0.71.

Orient Paper, Inc. is a leading paper manufacturer in North China. Orient Paper produces and distributes three types of paper products namely, packaging paper (corrugating medium paper), offset printing paper, and other paper products, including digital photo paper, and household/tissue paper that the company is currently expanding into.