UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of report (Date of earliest event reported): August 3, 2017
ORIENT PAPER, INC.
(Exact name of registrant as specified in its charter)
Nevada
(State or other jurisdiction of incorporation)
| 001-34577 | 20-4158835 | |
| (Commission File Number) | (IRS Employer Identification No.) |
|
Science Park, Juli Road Xushui District, Baoding City Hebei Province, People’s Republic of China |
072550 | |
| (Address of principal executive offices) | (Zip Code) |
(86) 312-8698215
(Registrant’s telephone number, including area code)
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
|
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2). Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐ |
| Item 2.02 | Results of Operations and Financial Condition. |
On August 3, 2017, Orient Paper, Inc. (the “Company”) issued a press release announcing its unaudited and preliminary financial results and operational results for the second quarter ended June 30, 2017. A copy of the press release making the announcement is attached as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.
| Item 9.01 | Financial Statements and Exhibits. |
(d) Exhibits.
The following exhibits are filed herewith:
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| ORIENT PAPER, INC. | |||
| Date: August 3, 2017 | By: | /s/ Zhenyong Liu | |
| Name: | Zhenyong Liu | ||
| Title: | Chief Executive Officer | ||
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Exhibit 99.1
Orient Paper, Inc. Pre-announces Unaudited Preliminary Financial Results for the Second Quarter 2017
Company to Host Earnings Conference Call on Friday, August 11, 2017, at 8:00 am ET
BAODING, China, August 3, 2017 /PRNewswire/ -- Orient Paper, Inc. (NYSE MKT: ONP) ("Orient Paper" or the "Company"), a leading manufacturer and distributor of diversified paper products in North China, today pre-announced its unaudited preliminary results for the quarter ended June 30, 2017. The Company anticipates filing its quarterly report on Form 10-Q for the second quarter 2017 with the Securities and Exchange Commission and releasing its earnings after the market close on Thursday, August 10, 2017. The Company will host its second quarter 2017 financial results conference call at 8:00 am Eastern Time (5:00 am Pacific Time/8:00 pm Beijing Time) on Friday, August 11, 2017.
Selected Second Quarter 2017 Financial Results (Unaudited and Preliminary)
| For the Three Months Ended June 30, | ||||||||||||
| 2017 | 2016 | % Change | ||||||||||
| Revenue ($M) | $ | 22.8 | $ | 38.0 | -40.0 | % | ||||||
| Sales volume (tonnes) | ||||||||||||
| Regular Corrugating Medium Paper ("CMP")* | 37,994 | 65,620 | -42.1 | % | ||||||||
| Light-Weight CMP** | 9,200 | 12,867 | -28.5 | % | ||||||||
| Tissue Paper Products | 568 | 1,194 | -52.4 | % | ||||||||
| Offset Printing Paper | 7,307 | 15,984 | -54.3 | % | ||||||||
| Digital Photo Paper | - | 160 | -100.0 | % | ||||||||
| Average selling price ($/tonne) | ||||||||||||
| Regular Corrugating Medium Paper ("CMP")* | $ | 366 | $ | 327 | 11.9 | % | ||||||
| Light-Weight CMP** | $ | 353 | $ | 334 | 5.7 | % | ||||||
| Tissue Paper Products | $ | 1,275 | $ | 1,250 | 2.0 | % | ||||||
| Offset Printing Paper | $ | 674 | $ | 654 | 3.1 | % | ||||||
| Digital Photo Paper | NM | $ | 1,793 | NM | ||||||||
| Gross profit ($M) | $ | 3.5 | $ | 6.9 | -49.7 | % | ||||||
| Income from operations ($M) | $ | 0.8 | $ | 4.2 | -81.7 | % | ||||||
| Net income ($M) | $ | 0.0 | $ | 2.6 | -99.4 | % | ||||||
| Diluted earnings per share ($) | $ | 0.00 | $ | 0.12 | -99.4 | % | ||||||
| * Products from PM6 |
| ** Products from PM1 |
Zhenyong Liu, Chairman and Chief Executive Officer of Orient Paper, commented, “Our second quarter results largely reflected the impact of a government mandated temporary restriction on production that has been in place since November 2016. Total sales volume decreased by 42.5% to 55,069 tonnes, the lowest level since the first quarter of 2013, leading to a 40.0% decrease in total revenue in the second quarter. Our margins also deteriorated as a result of increases in unit costs of recycled paper board, recycled whit scrap paper, and coal that increased by 34.0%, 17.5%, and 56.9% year-over-year, respectively. Looking ahead, we expect that the prices for our major products to remain relatively stable at current levels and the temporary government mandated production restriction/suspension from time to time continues to pose risks and uncertainties to our business.”
Earnings Conference Call
The Company’s management will host a conference call to discuss its second quarter 2017 financial results at 8:00 am US Eastern Time (5:00 am US Pacific Time/8:00 pm Beijing Time) on Friday, August 11, 2017.
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 Second Quarter 2017 Earnings Conference Call."
| Conference Call | |
| Date: | Friday, August 11, 2017 |
| Time: | 8:00 am ET |
| 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: | 64223587 |
This conference call will be broadcast live on the Internet and can be accessed by all interested parties at http://www.orientpaperinc.com/ or https://edge.media-server.com/m6/p/5gkp73yk.
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 11:00 am ET on August 11, 2017 to 9:59 am ET on August 19, 2017. 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 64223587 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 tissue paper products.
With production based in Baoding and Xingtai in 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 product 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.
For more information, please contact:
Company Contact:
Orient Paper, Inc.
Email: ir@orientpaperinc.com
Investor Relations:
Tony Tian, CFA
Weitian Group LLC
Email: tony.tian@weitian-ir.com
Phone: +1-732-910-9692
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