Written by The Edge
Mainboard-listed China Paper Holdings, the vertically integrated mixed pulp paper and paper chemical products manufacturer in China, says revenue for the 3 months ended 30 June 2010 (2QFY10) rose by 33.6% from RMB198.7 million ($39.9 million) in the 3 months ended 30 June 2009 (2QFY09) to RMB265.5 million.
Net profit attributable to equity holders rose 41.4% to RMB35.1 million from RMB24.8 million.
China Paper says this was mainly attributable to the strong sales contribution from the new coated paper manufacturing line which commenced production in May 2010 and the additional paper chemical capacity which went into full production a year earlier in June 2009. The increase in average selling prices of the paper products also contributed to the higher revenue registered during the period under review.
On a half year basis, revenue improved 21.1% to RMB501.7 million in 1HFY10 from RMB414.1 million in the 6 months ended 30 June 2009 (1HFY09), underpinned by the same factors impacting 2QFY2010’s performance.
Gross profit for 2QFY10 increased considerably by 37.9% to RMB63.3 million from RMB45.9 million in 2QFY09, as a result of the increase in turnover and average selling prices of the paper segment and relatively stable cost of sales. Consequently, gross profit margin also rose from 22.8% in 1QFY10 to 23.8% in 2QFY10
Dividend : None
