Business News
Qunxing Paper Holdings Company Limited Announces First Annual Results Since Listing
Wednesday 19. March 2008 - Qunxing Paper Holdings Company Limited ("Qunxing Paper" or the "Company", HKEx: 3868), the largest decorative base paper manufacturer in the PRC, is pleased to announce the first annual results of the Company and its subsidiaries (collectively the "Group" for the year ended 31 December 2007 since its initial public offering (the "IPO") in October 2007.
The Group’s turnover for the year ended 31 December 2007 amounted to RMB1,125.5million, up by 18.4% over the previous year, primarily due to the increase in overall sales volume and Group’s production capacity as a result of the commercial operation of Production lines nos. 5 to 6 since April 2006, while gross profit margin increased from 19.4% in 2006 to 25.2% in 2007. Profit attributable to shareholders of the Company surged by 273.2% to RMB350.6 million, which included the interest income of RMB106.9 million earned from the IPO. Basic earnings per share were RMB42 cents (2006: RMB13 cents). Board of Directors has recommended the payment of a final dividend of RMB10.126 cents per ordinary share for the year ended 31 December 2007.
Sale of decorative base paper products remained the Group’s major business and primary source of income in 2007, accounting for 77.1 % of total turnover. Turnover generated from sale of decorative base paper products amounted to RMB868.3 million, up by 4.1% as compared to RMB834.2 million in 2006. The growth was mainly attributable to the slight increases in sales volumes and the average selling prices by approximately 4.0% from RMB11,566 per tonne of decorative base paper products to RMB12,028 per tonne on average.
Qunxing Paper has extended its business to the manufacture and sale of printing paper product since July 2006, bringing a stable revenue contribution to the Group. Turnover generated from sale of printing paper product amounted to RMB257.3 million, up by 120.5% as compared to RMB116.7 million in 2006.
The Group believes that the increase in production capacity in recent years has strengthened its market position and enhanced its competitiveness; and the designed annual production capacity will reach 260,000 tonnes by 2008 and to 380,000 tonnes by 2009.