Industry Press Releases

Orient Paper, Inc. Announces Fourth Quarter and Fiscal Year 2015 Financial Results

Thursday, Mar 24, 2016
Pressreleases

Orient Paper, Inc., a leading manufacturer and distributor of diversified paper products in North China, today announced its audited financial results for the fourth quarter and fiscal year ended December 31, 2015.

Mr. Zhenyong Liu, Chairman and Chief Executive Officer of Orient Paper, commented, "The rate of economic growth in China has continued to slow down. Additionally, in the fourth quarter, we had to suspend our production from December 14 to December 29, 2015, to comply with an anti-smog governmental mandate. Despite these difficulties, we grew our gross profit by 22.3% for the year ended December 31, 2015. Our sales volumes for light-weight CMP were up 55.6% in 2015. Also, our newly launched tissue paper packaging business generated $1.7 million in sales for the year ended December 31, 2015. Looking ahead, China's economic growth rate is expected to see a further slow-down. In addition, as the central government ramps up its anti-smog efforts in Beijing and the surrounding provinces, we may be subject to additional government mandated temporary production suspensions. Despite these potential challenges, we anticipate that the sales of our light-weight CMP and tissue paper products will continue to grow because of the strong demand for these products and the closures of small-scale manufacturers."

Fourth Quarter 2015 Financial Highlights

   

For the Three Months Ended December 31,

($ millions)

 

2015

 

2014

 

% Change

Revenue

 

35.1

 

32.7

 

7.4%

Regular Corrugating Medium Paper ("CMP")*

 

19.5

 

20.3

 

-4.0%

Light-Weight CMP**

 

4.2

 

4.0

 

5.9%

Offset Printing Paper

 

9.7

 

8.4

 

16.6%

Tissue Paper Products

 

1.4

 

0.0

 

NA

Digital Photo Paper

 

0.2

 

0.0

 

405.5%

             

Gross profit

 

6.0

 

5.6

 

7.1%

Gross margin

 

17.0%

 

17.1%

 

-0.1pp

Regular Corrugating Medium Paper ("CMP")*

 

15.8%

 

15.9%

 

-0.1pp

Light-Weight CMP**

 

27.4%

 

25.2%

 

2.2pp

Offset Printing Paper

 

16.5%

 

16.5%

 

0.0pp

Tissue Paper Products

 

16.0%

 

NA

 

NA

Digital Photo Paper

 

-53.7%

 

-93.0%

 

39.3pp

             

Operating income

 

3.7

 

3.6

 

2.1%

Net income

 

2.2

 

2.2

 

0.0%

EBITDA

 

7.1

 

6.0

 

16.5%

Diluted earnings per share

 

0.11

 

0.11

 

0.0%

             

* Products from PM6

           

** Products from the newly renovated PM1

           

***Pp represents percentage points

   

 

  •     Despite the government mandated temporary production suspension from December 14 to December 29, 2015, revenue increased by 7.4% to $35.1 million, primarily attributable to an increase in sales of offset printing paper and contribution from sales of the newly launched tissue paper products, partially offset by a decrease in sales of regular CMP.
  •     Gross profit increased by 7.1% to $6.0 million.
  •     Gross margin slightly decreased to 17.0%, primarily due to the low gross margin for tissue paper products, partially offset by an increase in gross margin for light-weight CMP.
  •     Earnings before interest, taxes, depreciation and amortization ("EBITDA") was $7.1 million, an increase of 16.5% from the same period of last year.
  •     Net income was $2.2 million, or $0.11 per diluted share, both of which remained unchanged from the same period of last year.
  •     The newly launched tissue paper product business generated revenue of $1.4 million with shipment volume of 1,099 tonnes and average selling price ("ASP") of $1,313/tonne.
     

Revenue

For the fourth quarter of 2015, total revenue increased by $2.4 million, or 7.4%, to $35.1 million from $32.7 million for the same period of the last year. The following table summarizes revenue, volume and ASP by product for the fourth quarter of 2015:

 

For the Three Months Ended December 31,

 

2015

 

2014

 

Revenue ($'000)

 

Volume (tonne)

 

ASP ($/tonne)

 

Revenue ($'000)

 

Volume (tonne)

 

ASP ($/tonne)

Regular CMP

19,507

 

58,343

 

334

 

20,319

 

54,922

 

370

Light-Weight CMP

4,212

 

12,297

 

343

 

3,977

 

10,670

 

373

Offset Printing Paper

9,748

 

14,592

 

668

 

8,362

 

12,110

 

690

Tissue Paper Products

1,443

 

1,099

 

1,313

 

-

 

-

 

 NA 

Digital Photo Paper

199

 

77

 

2,582

 

39

 

13

 

3,069

Total

35,109

 

86,408

 

406

 

32,697

 

77,715

 

421

Revenue from CMP, including both regular CMP and light-Weight CMP, decreased by $0.6 million, or 2.4%, to $23.7 million, and accounted for 67.6% of total revenue for the fourth quarter of 2015, compared to $24.3 million, or 74.3% of total revenue for the same period of last year. The Company sold 70,640 tonnes of CMP at an ASP of $336/tonne in the fourth quarter of 2015, compared to 65,592 tonnes at an ASP of $370/tonne in the same period of last year.

Of the total CMP sales, revenue from regular CMP decreased by $0.8 million, or 4.0%, to $19.5 million, resulting from sales of 58,343 tonnes at an ASP of $334/tonne during the fourth quarter of 2015, compared to revenue of $20.3 million, resulting from sales of 54,922 tonnes at an ASP of $370/tonne for the same period of last year. Revenue from light-weight CMP increased by $0.2 million, or 5.9%, to $4.2 million, resulting from sales of 12,297 tonnes at an ASP of $343/tonne for the fourth quarter of 2015, compared to revenue of $4.0 million, resulting from sales of 10,670 tonnes at an ASP of $373/tonne, for the same period of the last year.

Revenue from offset printing paper increased by $1.4 million, or 16.6%, to $9.7 million for the fourth quarter of 2015, from $8.4 million for the same period of last year. The Company sold 14,592 tonnes of offset printing paper at an ASP of $668/tonne in the fourth quarter of 2015, compared to 12,110 tonnes at an ASP of $690/tonne in the same period of last year.

Revenue from tissue paper products was $1.4 million. The Company sold 1,099 tonnes tissue paper products at an ASP of $1,313/tonne for the fourth quarter of 2015.

Revenue from digital photo paper was $0.2 million for the fourth quarter of 2015, compared to $0.04 million for the same period of last year. The Company sold 77 tonnes of digital photo paper at an ASP of $2,582/tonne in the fourth quarter of 2015, compared to 13 tonnes at an ASP of $3,069/tonne in the same period of the last year. In October 2014, we shut down and disassembled our digital photo paper production facilities (the PM4 and PM5 production lines) for the relocation mandated by the local county government to a new workshop that we built across the street from our main production base, Xushui Paper Mill. We completed the relocation and resumed commercial production of our digital photo paper in August 2015.

Gross Profit and Gross Margin

Total cost of sales increased by $2.0 million, or 7.4%, to $29.1 million for the fourth quarter of 2015, from $27.1 million for the same period of the last year. Cost of sales per tonne was $337 for the fourth quarter of 2015, compared to $349 for the same period of last year. Costs of sales per tonne for regular CMP, light-weight CMP, offset printing paper, tissue paper products, and digital photo paper were, $281, $249, $558, $1,103, and $3,968, respectively, for the fourth quarter of 2015, compared to $311, $279, $577, $nil, and $5,946, respectively, for the same period of last year.

Total gross profit increased by $0.4 million, or 7.1%, to $6.0 million for the fourth quarter of 2015, from $5.6 million for the same period of last year. Total gross margin slightly decreased to 17.0% for the fourth quarter of 2015 from 17.1% for the same period of last year, primarily due to the lower gross margin for tissue paper products, partially offset by increase in gross margin for light-weight CMP.

Gross margin for regular CMP, light-weight CMP, offset printing paper, tissue paper products, and digital photo paper was 15.8%, 27.4%, 16.5%, 16.0% and -53.7%, respectively, for the fourth quarter of 2015, compared to 15.9%, 25.2%, 16.5%, nil, and -93.0%, respectively, for the same period of last year.

Selling, General and Administrative Expenses

Selling, general and administrative expenses ("SG&A") was $2.3 million for the fourth quarter of 2015, compared to $2.0 million for the same period of the last year. The increase was primarily due to an increase in the depreciation costs associated with disassembling the digital photo production lines for relocation that was charged to SG&A and our temporarily idle property, plant and equipment at our new tissue paper plant in the Wei County Industrial Park.

Income from Operations

Income from operations increased slightly to $3.7 million for the fourth quarter of 2015 from $3.6 million for the same period of last year. Operating margin was 10.4% for the fourth quarter of 2015, compared to 11.0% for the same period of last year.

Net Income

Net income was $2.2 million, or $0.11 per basic and diluted share, for the fourth quarter of 2015, which remained unchanged from the same period of last year.

EBITDA

EBITDA increased by $1.1 million, or 16.5%, to $7.1 million for the fourth quarter of 2015, from $6.0 million for the same period of last year.

Full Year 2015 Financial Results

   

For the Year Ended December 31,

($ millions)

 

2015

 

2014

 

% Change

Revenue

 

135.3

 

137.0

 

-1.3%

Regular Corrugating Medium Paper ("CMP")*

 

80.8

 

86.1

 

-6.2%

Light-Weight CMP**

 

16.1

 

10.4

 

54.6%

Offset Printing Paper

 

36.3

 

37.6

 

-3.3%

Tissue Paper Products

 

1.7

 

0.0

 

NA

Digital Photo Paper

 

0.4

 

3.0

 

-87.4%

             

Gross profit

 

27.9

 

22.8

 

22.3%

Gross margin

 

20.6%

 

16.6%

 

4.0pp

Regular Corrugating Medium Paper ("CMP")*

 

20.1%

 

14.4%

 

5.7pp

Light-Weight CMP**

 

30.3%

 

27.2%

 

3.1pp

Offset Printing Paper

 

18.6%

 

18.6%

 

0.0pp

Tissue Paper Products

 

13.7%

 

NA

 

NA

Digital Photo Paper

 

-64.8%

 

17.7%

 

-85.2pp

             

Operating income

 

18.2

 

17.4

 

4.5%

Net income

 

11.5

 

11.7

 

-1.4%

EBITDA

 

32.2

 

25.7

 

25.4%

Basic and Diluted earnings per share

 

0.57

 

0.61

 

-6.5%

             

* Products from PM6

           

** Products from the newly renovated PM1

           

***Pp represents percentage points

 

Revenue

For the year ended December 31, 2015, total revenue decreased by $1.7 million, or 1.3%, to $135.3 million, from $137.0 million for the fiscal year of 2014. The decrease in total revenue was primarily due to a decrease in sales of regular CMP, digital photo paper and offset printing paper, which were partially offset by increase in sales of light-weight CMP and contribution from the sales of the tissue paper products. The following table summarizes revenue, volume and ASP by product for the year ended December 31, 2015:

 

For the Year Ended December 31,

 

2015

 

2014

 

Revenue ($'000)

 

Volume (tonne)

 

ASP ($/tonne)

 

Revenue ($'000)

 

Volume (tonne)

 

ASP ($/tonne)

Regular CMP

80,780

 

224,302

 

360

 

86,076

 

236,906

 

363

Light-Weight CMP

16,106

 

43,920

 

367

 

10,420

 

28,226

 

369

Offset Printing Paper

36,323

 

53,137

 

684

 

37,564

 

54,774

 

686

Tissue Paper Products

1,718

 

1,307

 

1,315

 

-

 

-

 

 NA 

Digital Photo Paper

376

 

121

 

3,107

 

2,981

 

763

 

3,907

Total

135,303

 

322,787

 

419

 

137,041

 

320,669

 

427

Revenue from CMP, including both regular CMP and light-weight CMP, increased by $0.4 million, or 0.4%, to $96.9 million, and accounted for 71.6% of total revenue for the year ended December 31, 2015, compared to $96.5 million, or 70.4% of total revenue, for the fiscal year of 2014. The Company sold 268,222 tonnes of CMP at an ASP of $361 for the year ended December 31, 2015, compared to 265,132 tonnes at an ASP of $364/tonne for the year ended December 31, 2014.

Of the total CMP sales, revenue from regular CMP decreased by $5.3 million, or 6.2%, to $80.8 million, resulting from sales of 224,302 tonnes at an ASP of $360/tonne during the year ended December 31, 2015, compared to revenue of $86.1 million, resulting from sales of 236,906 tonnes at an ASP of $363/tonne for the year ended December 31, 2014. Revenue from light-weight CMP increased by $5.7 million, or 54.6%, to $16.1 million, resulting from sales of 43,920 tonnes at an ASP of $367/tonne during the year ended December 31, 2015, compared to revenue of $10.4 million, resulting from sales of 28,226 tonnes at an ASP of $369/tonne for the year ended December 31, 2014.

Revenue from offset printing paper decreased by $1.2 million, or 3.3%, to $36.3 million for the year ended December 31, 2015, from $37.6 million for the year ended December 31, 2014. The Company sold 53,137 tonnes of offset printing paper at an ASP of $684/tonne in the year ended December 31, 2015, compared to 54,774 tonnes at an ASP of $686/tonne in the year ended December 31, 2014.

Revenue from tissue paper products was $1.7 million. The Company sold 1,307 tonnes at an ASP of $1,315/tonne for the year ended December 31, 2015. The Company began the commercial production of tissue paper products in June 2015, and did not sell any tissue paper products in 2014.

Revenue from digital photo paper was $0.4 million for the year ended December 31, 2015, compared to $3.0 million for the year ended December 31, 2014. The Company sold 121 tonnes of digital photo paper at an ASP of $3,107/tonne in the year ended December 31, 2015, compared to 763 tonnes at an ASP of $3,907/tonne in the year ended December 31, 2014. As discussed above, we resumed commercial production of digital photo paper in August 2015.

Gross Profit and Gross Margin

Total cost of sales decreased by $6.8 million, or 6.0%, to $107.4 million for the year ended December 31, 2015, from $114.3 million for the year ended December 31, 2014. Cost of sales per tonne was $333 for the year ended December 31, 2015, compared to $356 for the year ended December 31, 2014. Costs of sales per tonne for regular CMP, light-weight CMP, offset printing paper, tissue paper products, and digital photo paper were $288, $255, $557, $1,135, and $5,121, respectively, for the year ended December 31, 2015, compared to $311, $269, $558, $nil, and $3,215, respectively, for the year ended December 31, 2014.

Total gross profit increased by $5.1 million, or 22.3%, to $27.9 million for the year ended December 31, 2015, from $22.8 million for the year ended December 31, 2014. Total gross margin was 20.6% for the year ended December 31, 2015, compared to 16.6% for the year ended December 31, 2014. Gross margins for regular CMP, light-weight CMP, offset printing paper, tissue paper products, and digital photo paper were 20.1%, 30.3%, 18.6%, 13.7%, and -64.8%, respectively, for the year ended December 31, 2015, compared to 14.4%, 27.2%, 18.6%, nil, and 17.7%, respectively, for the year ended December 31, 2014.

Selling, General and Administrative Expenses

SG&A was $9.7 million for the year ended December 31, 2015, compared to $4.8 million for the year ended December 31, 2014. The increase was primarily due to an increase in the depreciation costs associated with disassembling the digital photo production lines for relocation that was charged to SG&A and our temporarily idle property, plant and equipment at our new tissue paper plant in the Wei County Industrial Park.

Income from Operations

Income from operations increased by $0.8 million, or 4.5%, to $18.2 million for the year ended December 31, 2015, from $17.4 million for the year ended December 31, 2014. Operating margin was 13.3% for the year ended December 31, 2015, compared to 12.7% for the year ended December 31, 2014.

Net Income

Net income decreased by $0.2 million, or 1.4%, to $11.5 million for the year ended December 31, 2015, from $11.7 million for the year ended December 31, 2014. Basic and diluted earnings per share for the year ended December 31, 2015 were $0.57, compared to $0.61 for the year ended December 31, 2014.

EBITDA

EBITDA increased by $6.3 million, or 24.5%, to $32.2 million for the year ended December 31, 2015, from $25.7 million for the year ended December 31, 2014.

Cash, Liquidity and Financial Position

As of December 31, 2015, the Company had cash and cash equivalents, short-term debt (including notes payable and related party loan), current capital lease obligations, long term debt(including related party loans) and non-current capital lease obligations of $2.6 million, $27.7 million, $6.9 million, $19.0 million and $3.2 million, respectively, compared to $3.9 million, $28.5 million, $12.3 million, $15.6 million and $4.1 million, respectively, at the end of 2014.

Net cash provided by operating activities was $21.2 million for the year ended December 31, 2015, compared to $32.3 million for the year ended December 31, 2014. Net cash used in investing activities was $19.3 million for the year ended December 31, 2015, compared to $36.3 million for the year ended December 31, 2014. Net cash used in financing activities was $2.8 million for the year ended December 31, 2015, compared to net cash provided by financing activities of $4.7 million for the year ended December 31, 2014.

Earnings Conference Call:

The Company's management will host a conference call to discuss its fourth quarter and fiscal year of 2015 financial results at 8:00 am US Eastern Time (5:00 am US Pacific Time/ 8:00 pm Beijing Time) on Thursday, March 24, 2016.

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 2015 Earnings Conference Call."

 

Conference Call

 

Date:

Thursday, March 24, 2016

Time:

8:00 am EDT

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:

63069503

This conference call will be broadcast live over the Internet and can be accessed by all interested parties by clicking http://www.orientpaperinc.com/, or http://edge.media-server.com/m/p/v5hdx4gq.

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 April 8, 2016. 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 63069503 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 other paper products, including digital photo paper and tissue paper products.

With production based in Baoding and Xingtaiin 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 about the Company, 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.

 

ORIENT PAPER, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

FOR THE THREE MONTHS AND YEARS ENDED DECEMBER 31, 2015 AND 2014

 

 
   

Three Months Ended

   

Year Ended

 
   

December 31

   

December 31,

 
   

2015

   

2014

   

2015

   

2014

 
                         

Revenues

 

$

35,108,810

   

$

32,697,113

   

$

135,303,173

   

$

137,041,447

 
                                 

Cost of sales

   

(29,135,013)

     

(27,121,656)

     

(107,442,568)

     

(114,263,299)

 
                                 

Gross Profit

   

5,973,797

     

5,575,457

     

27,860,605

     

22,778,148

 
                                 

Selling, general and administrative expenses

   

(2,308,691)

     

(1,965,387)

     

(9,663,835)

     

(4,859,215)

 

Loss from disposal of property, plant and equipment

   

-

     

(20,225)

     

-

     

(709,647)

 

Gain from disposal of assets held for sale

   

-

     

132

     

-

     

203,620

 
                                 

Income from Operations

   

3,665,106

     

3,589,977

     

18,196,770

     

17,412,906

 
                                 

Other Income (Expense):

                               

Interest income

   

5,135

     

69,845

     

70,319

     

149,783

 

Subsidy income

   

68,140

     

22,614

     

555,605

     

22,614

 

Interest expense

   

(807,291)

     

(558,411)

     

(3,157,524)

     

(1,446,439)

 
                                 

Income before Income Taxes

   

2,931,090

     

3,124,025

     

15,665,170

     

16,138,864

 
                                 

Provision for Income Taxes

   

(770,801)

     

(896,011)

     

(4,122,965)

     

(4,432,504)

 
                                 

Net Income

   

2,160,289

     

2,228,014

     

11,542,205

     

11,706,360

 
                                 

Other Comprehensive Income (Loss):

                               
                                 

Foreign currency translation adjustment

   

(3,664,314)

     

952,353

     

(10,678,146)

     

(125,143)

 
                                 

Total Comprehensive Income (Loss)

 

$

(1,504,025)

   

$

3,180,367

   

$

864,059

   

$

11,581,217

 
                                 

 Earnings Per Share:

                               

Basic and Fully Diluted Earnings per Share

 

$

0.11

   

$

0.11

   

$

0.57

   

$

0.61

 
                                 

Weighted Average Number of Shares

                               

Outstanding - Basic and Fully Diluted

   

20,316,400

     

20,316,400

     

20,316,400

     

19,270,394

 

 

 

 

 


 

ORIENT PAPER, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

AS OF DECEMBER 31, 2015 and 2014

 

 
   

December 31,

 
   

2015

   

2014

 

ASSETS

           
             

Current Assets

           

Cash and cash equivalents

 

$

2,641,917

   

$

3,891,473

 

Restricted cash

   

10,779,845

     

8,873,999

 

Accounts receivable (net of allowance for doubtful accounts of $38,865 and $76,125 as of December 31, 2015 and 2014, respectively)

   

1,904,396

     

3,730,123

 

Inventories

   

9,205,420

     

7,139,599

 

Prepayments and other current assets

   

1,812,415

     

2,919,668

 
                 

Total current assets

   

26,343,993

     

26,554,862

 
                 

Prepayment on property, plant and equipment

   

1,404,460

     

1,490,440

 

Property, plant, and equipment, net

   

206,191,158

     

208,213,198

 

Recoverable VAT

   

3,266,454

     

3,228,075

 

Deferred tax asset – non-current

   

1,420,854

     

281,010

 
                 

Total Assets

 

$

238,626,919

   

$

239,767,585

 
                 

LIABILITIES AND STOCKHOLDERS' EQUITY

               
                 

Current Liabilities

               

Short-term bank loans

 

$

13,859,800

   

$

9,805,524

 

Current portion of long-term loans from credit union

   

-

     

147,083

 

Current portion of long-term loans from a related party

   

-

     

2,386,978

 

Current obligations under capital lease

   

6,860,412

     

12,258,488

 

Accounts payable

   

253,425

     

-

 

Notes payable

   

13,859,800

     

16,113,744

 

Due to a related party

   

368,751

     

227,900

 

Accrued payroll and employee benefits

   

531,912

     

492,765

 

Other payables and accrued liabilities

   

3,902,971

     

2,400,523

 

Income taxes payable

   

600,876

     

637,143

 
                 

Total current liabilities

   

40,237,947

     

44,470,148

 
                 

Loans from credit union

   

5,174,325

     

5,760,745

 

Loans from a related party

   

13,859,800

     

9,805,524

 

Deferred gain on sale-leaseback

   

327,637

     

695,389

 

Long-term obligations under capital lease

   

3,217,785

     

4,090,413

 
                 

Total liabilities

   

62,817,494

     

64,822,219

 
                 

Commitments and Contingencies

               
                 

Stockholders' Equity

               

Common stock, 500,000,000 shares authorized, $0.001 par value per share, 20,316,400 shares issued and outstanding as of December 31, 2015 and 2014

   

20,316

     

20,316

 

    Additional paid-in capital

   

49,218,982

     

49,218,982

 

    Statutory earnings reserve

   

6,080,574

     

6,080,574

 

    Accumulated other comprehensive income

   

6,343,019

     

17,021,165

 

    Retained earnings

   

114,146,534

     

102,604,329

 
                 

    Total stockholders' equity

   

175,809,425

     

174,945,366

 
                 

Total Liabilities and Stockholders' Equity

 

$

238,626,919

   

$

239,767,585

 

 

 

ORIENT PAPER, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED DECEMBER 31, 2015 AND 2014

 

   

2015

   

2014

   
               

Cash Flows from Operating Activities:

             

Net income

 

$

11,542,205

   

$

11,706,360

   

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

                 

Depreciation and amortization

   

13,398,990

     

8,289,320

   

Loss(Gain) from impairment and disposal of property, plant and equipment

   

-

     

709,647

   

Gain from disposal of assets held for sale

   

-

     

(203,620)

   

(Recovery from)/ Allowance for bad debts

   

(34,204)

     

8,571

   

Stock-based expense for service received

   

-

     

-

   

Deferred tax

   

(1,203,019)

     

398,385

   

Changes in operating assets and liabilities:

                 

Accounts and notes receivable

   

1,710,176

     

(413,159)

   

Prepayments and other current assets

   

744,454

     

(1,799,514)

   

Inventories

   

(2,578,342)

     

4,257,805

   

Accounts payable

   

263,720

     

(921,580)

   

Notes payable

   

(1,378,183)

     

11,163,003

   

Accrued payroll and employee benefits

   

70,319

     

(4,950)

   

Other payables and accrued liabilities

   

(1,332,039)

     

(299,932)

   

Income taxes payable

   

508

     

(577,163)

   

Net Cash Provided by Operating Activities

   

21,204,585

     

32,313,173

   
                   

Cash Flows from Investing Activities:

                 

Purchases of property, plant and equipment

   

(19,331,000)

     

(39,207,768)

   

Proceeds from sale of assets held for sale

   

-

     

2,684,703

   

Proceeds from disposal of property, plant and equipment

   

-

     

241,714

   

Net Cash Used in Investing Activities

   

(19,331,000)

     

(36,281,351)

   
                   

Cash Flows from Financing Activities:

                 

Proceeds from issuing of common stock

   

-

     

2,311,002

   

Proceeds from related party loans

   

5,197,615

     

10,557,060

   

Repayment of related party loans

   

(2,730,654)

     

(793,500)

   

Proceeds from bank loans

   

14,422,846

     

11,366,410

   

Repayments of bank loans

   

(10,023,878)

     

(8,111,890)

   

Payment of capital lease obligation

   

(7,148,142)

     

(4,199,689)

   

Restricted cash

   

(2,515,986)

     

(6,395,131)

   

Dividend Paid

   

-

     

-

   

Net Cash (Used in)/ Provided by Financing Activities

   

(2,798,199)

     

4,734,262

   
                   

Effect of Exchange Rate Changes on Cash and Cash Equivalents

   

(324,942)

     

(5,774)

   
                   

Net Increase/ (Decrease) in Cash and Cash Equivalents

   

(1,249,556)

     

760,310

   
                   

Cash and Cash Equivalents - Beginning of Period

   

3,891,473

     

3,131,163

   
                   

Cash and Cash Equivalents - End of Period

 

$

2,641,917

   

$

3,891,473

   
                   

Supplemental Disclosure of Cash Flow Information:

                 

Cash paid for interest, net of capitalized interest cost

 

$

3,255,478

   

$

1,826,460

   

Cash paid for income taxes

 

$

5,325,477

   

$

4,611,282

 

Source : prnewswire.com 

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