Altech Advanced Materials AG
Youbisheng Green Paper AG: Further improvement of profit margins
Youbisheng Green Paper AG / Key word(s): 9-month figures 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. 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 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 28.11.2013 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 |
242065 28.11.2013 |