China Paper Holdings reports Q1 net loss owing to slowing Chinese economy

China Paper Holdings has released its financial results for the quarter ended March 31, after a fire that broke out at its Cangshan facility in December damaged its financial records.

Following the fire, the Shandong-based paper products manufacturer had applied to the Singapore Exchange (SGX) for an extension to Dec 31 this year to announce its unaudited financial statements for the fiscal year ended Dec 31 last year and the three months ended March 31.

The company posted a net loss of 26.7 million yuan for its first quarter, compared with a net profit of 15.3 million yuan in the same period a year ago.

The firm said this was due to lower revenue and higher fixed production overheads, owing to a slowdown in the Chinese economy which affected sales in the publishing and printing industry.

Turnover for the quarter dropped to 173.5 million yuan, down 27.6 per cent from 239.5 million yuan a year ago.

The firm reported a net loss per share of 1.47 fen for the three months to Mar 31, falling 186 per cent from 1.69 fen a year ago.

Net asset value fell to 91.86 fen as at Mar 31, compared with 93.34 fen as at Dec 31 last year.

Production at its Cangshan plant has not resumed but the firm is still continuing its marketing and sales activities, China Paper said.

China Paper's shares closed 0.1 cents up at 2.8 cents today.