Altech Advanced Materials AG
Youbisheng Green Paper AG further improves profit margins in H1 2013
Youbisheng Green Paper AG / Key word(s): Half Year Results H1 Results 2013 Youbisheng Green Paper AG further improves profit margins in H1 2013 Munich, 28 August 2013. Youbisheng Green Paper AG recorded improved profit margins in the first six months of 2013 whereas results were on the same level as in the year 2012. Revenues compared to previous years reporting period slightly decreased by 3.1 per cent from 48.5 million Euros to 47.0 million Euros. With 12.8 million Euros, gross profit did not change year-on-year. The operating income (EBIT) slightly increased by 0.9 per cent from 11.7 million Euros to 11.8 million Euros. Net profit was also stable, reaching 8.8 million Euros as in the previous year. Correspondingly, margins of the Chinese manufacturer of eco-friendly linerboard for the growing Chinese consumer goods industry improved slightly: For the first half of 2013, gross profit margin was 27.2 per cent (H1 2012: 26.4 per cent), EBIT margin was 25.0 per cent (H1 2012: 24.1 per cent) and net profit margin 18.8 per cent (H1 2012: 18.1 per cent). The slight decrease in revenues reflected the lower prices of raw materials, that Youbisheng partially passed on to its clients. Nevertheless, the company managed to improve its profit margin due to lower prices for recycled paper, strict cost control and enhanced efforts to sell higher margin products. This resulted in higher margin levels. Average gross margins rise in all product segments Youbisheng’s sales of self-produced single-sided testliner decreased by 11.6 per cent to 20.5 million Euros between January and June 2013. The main reasons for this decrease were a lower average selling price and a shifting of production capacities from single-sided testliner to higher value-added products, resulting in a lower sales volume. Average gross profit margin in this segment increased from 27.4 per cent to 28.5 per cent. The sales of double-sided testliner and anti-counterfeit testliner increased by 13.8 per cent to 10.7 million Euros and 44.4 per cent to 1.3 million Euros, respectively. While the general demand for double-sided testliner remained strong, allowing Youbisheng to reap a higher profit margin, the business with anti-counterfeit testliner also continued its growth as more costumers were interested in the inherent security feature of this product. Average gross profit margin for double-sided testliner improved year-on-year from 31.6 per cent to 32.9 per cent while the average gross profit margin for anti-counterfeit testliner rose from 34.7 per cent to 35.5 per cent. The sales of sub-contracted testliner decreased by 2.0 per cent from 14.9 million Euros in H1 2012 to 14.6 million Euros in H1 2013 with a stable average gross profit margin of 21.0 per cent. The company’s Group equity increased from 64.0 million Euros as of 31 December 2012 to 75.5 million Euros as of 30 June 2013, representing an equity ratio of 75.5 per cent. The increase in equity was due to the generated profits from operations. Outlook for the full financial year 2013 The demand for linerboard is continuing to grow. This is a result of the rising demand for consumer goods in China but also of the fact that the Chinese government is going to slowly replace all packaging products, that are not environmentally friendly. Despite the slower economic growth in China, the forecast for the annual linerboard growth until the year 2015 is about 12 per cent. Due to limited production capacity of Youbisheng, the management has to rely on subcontractors and changes in the product mix to increase revenue as well as to increase the profit margin. The management plans to set up a new production line in Huanggang city in Hubei. Once the production has started there, this is expected for 2015, the new production lines will add 300,000 tons of annual production capacity to the company’s potential output. 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 Youbisheng Green Paper AG Disclaimer concerning prognoses End of Corporate News 28.08.2013 Dissemination of a Corporate News, transmitted by DGAP – a company of EQS Group AG. The issuer is solely responsible for the content of this announcement. DGAP’s Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de |
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@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 |
227806 28.08.2013 |