Youbisheng Green Paper AG: Record results in 2011
Munich, 30 April 2012. Youbisheng Green Paper AG, the German holding company of a Chinese manufacturer of environmentally friendly linerboard for the growing Chinese consumer goods industry, has reached record results in 2011. Revenues increased by 22% to EUR 92.2 million, EBIT was up by 17.3% to EUR 20.8 million.
“I am very proud that our company achieved such a good financial result after its IPO at the Frankfurt Stock Exchange. Our double-sided testliner, which is made from up 100% recycled paper, the shift to unique high-value products and our innovations continue to drive our growth,” states Haiming Huang, CEO of Youbisheng Green Paper. The demand for testliner of Youbisheng PRC is growing rapidly due to the high quality and innovative characteristics of its products. Sales volume increased from 189,732 tons to 221,741 tons, an increase of 14.4%. The average selling price increased by 4.8% from EUR 397 per ton to EUR 416 per ton.
In 2011, Youbisheng maintained a strong balance sheet with group equity of EUR 47.4 million and an equity ratio of 65%. The cash position amounted to EUR 30.9 million as of 31 December 2011.
Due to production levels at full capacity, the company is growing by outsourcing the production of the less innovative products (single-sided testliner) and using the own capacity for the production of the company’s unique higher margin products (e.g. double-sided testliner and anti-counterfeit testliner). The outsourcing is executed by renting nearby facilities and controlling the proprietary production process by Youbisheng staff. While outsourcing increases revenues and profit considerably, the profit margins decrease slightly as a result of the lower efficiency of the rented production facilities.
Further outsourcing as well as Youbisheng’s innovative high margin products – the double-sided testliner, the new heavy testliner and the new anti-counterfeit testliner – will contribute to the growth in 2012. For full year 2012, management expects revenues to reach over EUR 105 million and EBIT margin to be at least 20.0%.
To set the basis for growth over the next years, Youbisheng plans to expand the current production facility with an estimated investment of EUR 60 to EUR 70 million. This investment will triple production capacity. Construction of the facility is to begin by the beginning of 2013.
The current business year has started well for the Youbisheng Group, winning three new customers in Quanzhou and receiving an purchase order of 300 tons for anti-counterfeit testliner.
The Annual Report 2011 of Youbisheng Green Paper AG has been published on 30 April 2012 and is available on the company’s website www.youbisheng-greenpaper.de.
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.