Youbisheng Green Paper AG: Strong business development in Q3 2011
Munich, 30 November 2011. Youbisheng Green Paper AG, the German holding company of a Chinese manufacturer of environmentally friendly linerboard for the growing Chinese consumer goods industry, outperformed its ambitious targets in the first nine months 2011 due to strong revenue growth in Q3 2011.
Despite the company’s limited capacities, revenues increased by 13.8% to EUR 68.0 million in the first nine months of 2011. Due to a strong third quarter, sales growth picked up compared to H1 2011. Quarter on quarter alone, revenues were up 15.1% compared to Q3 2010. For the first nine months 2011, EBIT increased by 8% to EUR 16.1 million. This represents an EBIT margin of 23.6%. “Through a higher outsourcing volume and a shift to unique high-value products we were able to reach such a strong result,” states Haiming Huang, CEO of Youbisheng Green Paper AG.
Youbisheng’s double-sided testliner, made of 100% recycled paper, continues to dominate the growth. The positive sales development of the double-sided testliner will contribute to the company’s profitability in the future. In the past months, Youbisheng’s R&D team has developed a new heavy single-sided testliner with a higher basic weight of 400 g/m2. It was successfully introduced into the market in October.
The company is still moving in line with its goal to increase sales in other provinces of China. In the reporting period, the company has raised its sales to outside Fujian and Quangdong province, selling the products to the provinces Anhui, Sichuan, Zhejiang, Hunan and Hubei.
Group equity increased from EUR 26.1 million as of 31 December 2010 to EUR 40.9 million as of 30 September 2011. This increase is due to the profit generated from operations as well as an increase in new shares and capital contribution. The equity ratio was approx. 64% at the end of the reporting period. Net cash generated from operations was up from EUR 8.3 million in the first nine months of 2010 to EUR 13.5 million in the respective period 2011. As of September 30, 2011 the liquid funds of the company amounted to EUR 24.0 million.
On the basis of the strong nine months 2011 results, the management updated its guidance for full year 2011 and now expects revenues of more than EUR 94 million and an EBIT margin above the 23.5%. Previously the targeted revenue amounted to approx. EUR 78 million.
The nine-month report is available for download on the company’s website
About Youbisheng Green Paper AG
Youbisheng Green Paper AG is the German holding company of a Chinese clean-tech leader of environmentally friendly produced linerboard from up to 100% recovered fibres. The high-quality linerboard innovations of Youbisheng take up a special position in the Chinese market and are produced in the own production plant near Quanzhou City. They are used in the packaging industry in the Fujian and Guangdong Province (together about 141 million inhabitants), especially for visually attractive sales packaging and carrier bags of high-quality consumer goods.
Youbisheng has been operating as a paper producer since 2000. In fiscal year 2010 and with its production plants operating at full capacity, it manufactured almost 150,000 metric tons of linerboard, making it one of the biggest linerboard producers in Fujian and Guangdong Provinces.
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Disclaimer concerning prognoses
This communication contains forward-looking statements Forward-looking statements are statements that are not historical facts instead they reflect the current views and expectations of Youbisheng Green Paper AG and the assumptions underlying them about future events. Forward-looking statements are subject to many risks and uncertainties. If any of such risks and uncertainties materialize or if the assumptions underlying any of the forward-looking statements of Youbisheng Green Paper AG are proving to be incorrect, the actual results of Youbisheng Green Paper AG may be materially different from those expressed or implied by such forward-looking statements. Youbisheng Green Paper AG does not intend or assume any obligation to update these forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made.