Orient Paper, Inc. Pre-announces Unaudited Preliminary Financial Results for the Third Quarter 2017

BAODING, China, Nov. 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 September 30, 2017. The Company anticipates filing its quarterly report on Form 10-Q for the third quarter 2017 with the Securities and Exchange Commission and releasing its earnings after the market close on Thursday, November 9, 2017. The Company will host its third quarter 2017 financial results conference call at 8:00 am Eastern Time (5:00 am Pacific Time/9:00 pm Beijing Time) on Friday, November 10, 2017.

Selected Third Quarter 2017 Financial Results (Unaudited and Preliminary)

		For the Three Months Ended September 30,
		2017		2016		% Change
Revenue ($M)		$33.5		$37.5		-10.6%
Sales volume (tonnes)
Regular Corrugating Medium Paper ("CMP")*		43,202		68,422		-36.9%
Light-Weight CMP**		10,173		12,613		-19.3%
Tissue Paper Products		493		1,327		-62.8%
Offset Printing Paper		8,035		14,571		-44.9%
Digital Photo Paper		0		38		-100.0%
Average selling price ($/tonne)
Regular Corrugating Medium Paper ("CMP")*		$518		$325		59.4%
Light-Weight CMP**		$491		$332		47.9%
Tissue Paper Products		$1,339		$1,227		9.1%
Offset Printing Paper		$679		$641		5.9%
Digital Photo Paper		NM		$1,702		NM
Gross profit ($M)		$7.2		$7.3		-1.5%
Income from operations ($M)		$2.7		$4.7		-42.5%
Net income ($M)		$1.6		$3.0		-48.2%
Diluted earnings per share ($)		$0.07		$0.14		-48.2%
* Products from PM6
** Products from PM1

Zhenyong Liu, Chairman and Chief Executive Officer of Orient Paper, commented, "Our third quarter results largely reflected the impact of a government mandated temporary restriction on production volume that has been in place since November 2016. Total revenue decreased by 10.6% year over year to $33.5 million on the back of a 36.1% drop in overall volume that more than offset the increase in blended average selling prices. Looking ahead, we expect the newly elected Communist Party of China leaders to continue to promulgate rules and regulations on environmental protection that could lead to government-mandated temporary restriction or suspension on paper production from time-to-time, leading to significant changes in pricing and supply/demand balances."

Earnings Conference Call

The Company's management will host a conference call to discuss its third quarter 2017 financial results at 8:00 am US Eastern Time (5:00 am US Pacific Time/9:00 pm Beijing Time) on Friday, November 10, 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 Third Quarter 2017 Earnings Conference Call."

Conference Call
Date:	Friday, November 10, 2017
Time:	8:00 am ET
International Toll Free:	United States: [phone] Mainland China: 400-120-0654 Hong Kong: 800-906-606 International: [phone]
Conference ID:	6797929

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/sybi9bhf .

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 November 10, 2017 to 7:59 am ET on November 18, 2017. To listen, please dial+1-855-452-5696 if calling from the United States, or [phone] if calling internationally. Use the passcode 6797929 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 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: [e-mail]

Investor Relations:
Tony Tian, CFA
Weitian Group LLC
Email: [e-mail]
Phone: [phone]

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SOURCE Orient Paper, Inc.

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