Youbisheng Green Paper AG increasing profitability in Q1 2012
Munich, 29 May 2012. Youbisheng Green Paper AG, the German holding company of a Chinese manufacturer of environmentally friendly linerboard for the growing Chinese consumer goods industry, continued its growth in the first quarter of 2012. Revenues increased by 7% to EUR 22.4 million (Q1 2011: EUR 20.9 million). EBIT increased by 12% to EUR 5.2 million (Q1 2011: EUR 4.7 million).
The revenue increased significantly due to 7.6 % higher average selling prices of the Youbisheng Testliner. This sales increase in Q1 was achieved despite the typical production slow down during the Chinese New Year celebration, causing the factory to run on limited capacity for 2 weeks, with a stable quarterly production volume of around 51 thousand tons (Year over year). Despite rising raw material prices, Youbisheng was able to further increase the gross profit margin to now 25.2%, compared to 24.1% for Q1 2011. Respectively, the gross profit increased by 12% from EUR 5.0 million in Q1 2011 to EUR 5.6 million in Q1 2012. Net profit increased by 13% to EUR 3.9 million (Q1 2011: EUR 3.5 million).
During the reporting period, the company launched its first anti-counterfeit testliner and already sold 578 tons for EUR 275,400. Gross margin of this testliner is 35.0%. “This is a breakthrough for our production line and we are looking forward to sell anti-counterfeit testliner to all regions of China. We are positive that the idea and the features will be widely accepted by the branded consumer producers in China,” states Haiming Huang, CEO of Youbisheng Green Paper AG. The company’s R&D team is currently working on double sided anti-counterfeit testliner which can be used for producing paper bags by packaging companies.
In the first quarter of 2012, Youbisheng’s group equity increased from EUR 47.4 million as at 31 December 2011 to EUR 49.5 million as at 31 March 2012. This represents an equity ratio of 68.5% as of 31 March 2012.
The positive company development was achieved despite slowing economic growth in China. Youbisheng mainly relies on the Chinese domestic consumer market, which still shows sustainable growth. The demand for Youbisheng’s testliner is expected to grow. For the full year 2012, management confirms its outlook and expects revenues to reach over EUR 105 million and EBIT margin to be at least 20.0%.
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 2011 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.
For further information:
Kirchhoff Consult AG
Phone: +49 (0)40 60 91 86 0
Youbisheng Green Paper AG
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.