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Research from Huicong.com Indicates
Paper Industry in China is Very Strong
June 14, 2008
Orient Paper, Inc. (OTCBB: OPAI) (the ¡°Company¡±) announced that a
leading B2B E-commerce website in China, Huicong.com
(http://www.hc360.com/), published market research results of paper
industry in China recently. The results are outlined as follows:
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In recent years, the growth rate of the
development of the paper industry in China has been higher than the
growth rate of GDP.
The trend of rapid development continued in 2007 and the first
quarter in 2008. Industry profitability, investments in fixed assets
and the industry economy are all experiencing a growth trend, such
that the industry is gradually moving into a boom cycle.
Statistics from Huicong.com indicate that in past two years, China¡¯s
paper industry was constrained by the control of the amount of money
invested into the industry.
Price increases were also attributed to the shutdown of small paper
milling factories because of inability to meet the environmental
discharge standards.
Many paper products increased in price in the third quarter in 2007;
the price of writing paper, offset paper, white paperboard, as well
as coated paper increased by approximately $70 per ton. Corrugated
paper and kraft paper increased by $25 to $35 per ton, which
indicates that a potentially strong upward trend in production and
sales in 2008 will be seen.
A spokesperson for the management of the Company stated, ¡°From the
price of China¡¯s paper industry and market fluctuation, the fact
that we position ourselves in the mid-grade and high grade offset
paper, photographic paper, kraft paper and corrugated paper is very
reasonable and sensible. And it also indicates the potential for
continued excellent economic benefits that we achieved in the first
quarter this year.¡±
As stated in previous earnings release, the Company¡¯s net revenues
for the first quarter of 2008 increased 66.04% to $13.5 million
compared to $8.1 million for the first quarter of 2007. First
quarter¡¯s net income was $1.4 million, compared to $0.78 million for
the first quarter of 2007, with earnings per share increasing to
$0.04 per diluted share compared to $0.02 per diluted share for the
comparable period of 2007.
¡°In the future, we will continue these productions lines as our main
focus and strengthen our advantages in research and development,
production and marketing, to consolidate our profitability further
and provide better returns to our shareholders,¡± the spokesperson
said.
Forward-Looking Statements
With the exception of historical information, the matters discussed
in this press release and on our website referenced herein include
forward-looking statements that involve a number of risks and
uncertainties about Orient Paper and its subsidiaries and their
respective businesses and products within the meaning of Rule 175
under the Securities Act of 1933 and Rule 3b-6 under the Securities
Exchange Act of 1934, and are subject to the safe harbor created by
those rules. The actual results may differ materially depending on a
number of risk factors including, but not limited to, the general
economic and business conditions in the People¡¯s Republic of China,
future product development and production capabilities, shipments to
end customers, market acceptance of new and existing products,
additional competition from existing and new competitors, changes in
technology, and various other factors beyond its control. In some
cases, you can identify forward-looking statements by use of words
such as "may," "will," "should," "expect," "plan," "anticipate,"
"believe," "estimate," "predict," "potential" or "continue," the
negative of such terms, or other similar words. Although we believe
that the expectations reflected in the forward-looking statements
are reasonable, such statements should not be regarded as a
representation by the Company, or any other person, that such
forward-looking statements will be achieved. We undertake no duty to
update any of the forward-looking statements, whether as a result of
new information, future events or otherwise. In light of the
foregoing, readers are cautioned not to place undue reliance on such
forward-looking statements. All forward-looking statements are
expressly qualified in their entirety by this Cautionary Statement
and the risks factors detailed in the Company¡¯s reports filed with
the Securities and Exchange Commission. Orient Paper undertakes no
duty to revise or update any forward-looking statements to reflect
events or circumstances after the date of this release.
Contact:
Orient Paper, Inc.
Susan Luo, 011-86-312-8605508
info@orientalpapercorporation.com
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