DGAP-News: Youbisheng Green Paper AG: Further improvement of profit margins
(firmenpresse) - DGAP-News: Youbisheng Green Paper AG / Key word(s): 9-month figures
Youbisheng Green Paper AG: Further improvement of profit margins
28.11.2013 / 08:48
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9M Results 2013
Youbisheng Green Paper AG: Further improvement of profit margins
Munich, 28 November 2013. In the first nine months of 2013 Youbisheng Green
Paper AG showed a slight decline in revenues but improved profit margins.
Furthermore, Youbisheng has started the preparational works on the
construction of the new production line in Huanggang city, which is
expected to significantly expand the company's production capacities in
order to meet the rising demand for its linerboard products.
In total, the revenues of Youbisheng decreased slightly year-on-year by 3
per cent from 74.0 million Euros to 71.8 million Euros. In RMB terms the
sales decline was 3.3 per cent. In the course of the reporting period, the
operating income (EBIT) remained relatively stable at 18.1 million Euros
(9M 2012: 18.3 million Euros) bringing EBIT margin up 0.5 percentage points
to 25.2 per cent. The Group's net profit in the first nine months was also
fairly stable at 13.6 million Euros compared to last year's 13.8 million
Euros. Correspondingly, the net profit margin increased from 18.6 per cent
to 18.9 per cent.
The development of the Group's revenues is a result of the limited
production capacity but especially of the decline in average selling
prices, caused by lower prices for recycled paper, the main raw material
for Youbisheng's products. However, these lower prices were only partly
passed on to the customers. As a result of this and in connection with
strict cost control as well as enhanced efforts to sell higher margin
products, the company managed to improve its profit margins against the
market trend.
Average gross profit margin grew in all product segments
In the first nine months of 2013, Youbisheng recorded rising gross profit
margins in all product segments. Additionally, a look at the segment split
shows that the company managed to grow the share of higher-margin products,
offsetting the negative impact of the price reductions. While revenues in
those segments increased steadily in the reporting period, revenues of
lower-margin products slightly declined. The sales of own-produced
single-sided testliner decreased by 10.9 per cent from 34.5 million Euros
in 2012 to 31.1 million Euros in in the first nine months of 2013. This was
mainly due to a limited capacity for the production and partly due to
declining average selling prices. However, the average gross profit margin
increased from 28.2 per cent to 29.1 per cent year-on-year. Sales of
sub-contracted testliner also fell by 2.7 per cent from 22.8 million Euros
to 22.2 million Euros, while the average gross profit margin still
increased from 21.0 per cent to 21.6 per cent in the reporting period. The
decline in sales value was due to a lower average selling price, despite a
slight increase in sales volume.
Contrary to this, sales of double-sided testliner increased by 8.6 per cent
from 15.2 million Euros in previous year's reporting period to 16.5 million
Euros in 2013. Simultaneously, the average gross profit margin for this
product segment improved from 32.6 per cent to 33.5 per cent. A similar
development was recorded for the sales of anti-counterfeit testliners.
While the average selling price decreased, sales increased by 33.3 per cent
from 1.5 million Euros to 2.0 million Euros year-on-year. The average gross
profit margin in the first nine months 2012 was 35.6 per cent and rose to
36.1 per cent in the corresponding reporting period 2013.
Strong balance sheet despite investments
The cash flow from operations and investing activities was influenced by
the planned new production facility. On the one hand there were deposits
e.g. for the project contractor amounting to 23.2 million Euros and on the
other hand investments to secure the land amounting to 12.3 million Euros.
Nevertheless, Youbisheng recorded a cash position of 28.5 million Euros as
at 30 September 2013.
The equity position of Youbisheng also remained strong and rose from 64.0
million Euros as at 31 December 2012 to 78.3 million Euros as at 30
September 2013. This represents an equity ratio of 72.9 per cent as at 30
September 2013.
Outlook for the full financial year 2013
On the basis of the nine months report and the current market development,
Youbisheng's management board expects revenues to be lower than previously
projected. Currently, the forecast for the full year amounts to revenues of
96 million Euros. The anticipated lower revenues are mainly due to lower
average selling prices. However, the management expects prices for recycled
paper to stabilize. As a result, last quarter's negative time lag effect
from falling raw material prices compared to product selling prices should
evaporate. Nevertheless, overall profitability of the company has not been
compromised since the EBIT margin has gained slightly, which is expected to
be sufficient to offset the effects from current selling price levels. The
EBIT margin is expected to be around 25.0 per cent instead of 24.0 per cent
as reported before.
In the mid term, Youbisheng expects revenues growth through the removal of
production limitations when the new production facility in Huanggang city
goes into operation. This ensures that Youbisheng is able to meet the
rising demand for linerboard and to take advantage of the fragmented market
segment in the mid-west of China.
The full 9M 2013 report of Youbisheng is available on the website at
http://www.youbisheng-greenpaper.de/en/investor-relations/publications.html
About Youbisheng Green Paper AG
Youbisheng Green Paper AG is the German holding company of a Chinese
clean-tech leader of eco-friendly produced linerboard from up to 100 per
cent 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 2012 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 please contact:
Kirchhoff Consult AG
Sebastian Bucher
Tel.: +49 (0)40 60 91 86 18
sebastian.bucher(at)kirchhoff.de
Youbisheng Green Paper AG
Gustav-Heinemann-Ring 44
81739 München
contact(at)youbisheng-greenpaper.de
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-lookingstatements. 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.
End of Corporate News
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28.11.2013 Dissemination of a Corporate News, transmitted by DGAP - a
company of EQS Group AG.
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Language: English
Company: Youbisheng Green Paper AG
Gustav-Heinemann-Ring 44
81739 München
Germany
Phone: 089 - 451 63992
Fax: 089 - 451 63993
E-mail: contact(at)youbisheng-greenpaper.de
Internet: www.youbisheng-greenpaper.de
ISIN: DE000A1KRLR0
WKN: A1KRLR
Listed: Regulierter Markt in Frankfurt (Prime Standard);
Freiverkehr in Berlin, Düsseldorf
End of News DGAP News-Service
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242065 28.11.2013
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