OREANDA-NEWS. November 17, 2011. China Shengda Packaging Group Inc. announced its financial results for the three months ended September 30, 2011.

"Volumes were 8% ahead of the same quarter last year and revenues 9% higher. Average selling prices were marginally higher overall. We are pleased that we increased our presence in the market place through higher levels of shipments," Daliang Teng, CEO of China Shengda Packaging, commented. "Despite the growth in revenues, labor and raw material cost pressures persisted and our margins were lower as we absorbed some of those higher costs. Even so, early in the 4Q, raw materials prices appear to be softening and we expect to meet our full year guidance for both sales and EPS."

Revenues increased USD 2.7 million, or 8.7%, to USD 33.6 million for the three months ended September, 2011, from USD 30.9 million during the same period of 2010. The increase was primarily a result of increased sales volume. The sales volume increased 6.5 million square meters, or 8.0%, to 87.6 million square meters for the three months ended September 30, 2011, from 81.1 million square meters during the same period of 2010. The increased sales volume was mainly the result increased efforts from the sales team.

Gross profit declined 29.3% to USD 6.0 million from USD 8.4 million in the same period of 2010.

Net income attributable to common stockholders decreased 51.5% to USD 2.3 million, or USD 0.06 per diluted share, from USD 4.8 million, or USD 0.15 per diluted share, in the same period of 2010.

Revenue for the first nine months of 2011 was USD 93.2 million, up 1.4% from revenue of USD 91.9 million for the first nine months of 2010, mainly due to higher average per square meter prices partially offset by decreased sales volume. The sales volume decreased 4.2 million square meters, or 1.7%, to 241.4 million square meters from 245.6 million square meters during the same period of 2010.

Gross profit was USD 19.2 million compared to USD 25.7 million for the nine months of 2010. Gross margin was 20.6%, compared to 28.0% for the first nine months of 2010. Net income attributable to the Company's common stockholders was USD 8 million, or USD 0.20 per diluted share, compared to USD 14.1 million, or USD 0.47 per diluted share, for the same period a year ago.

China Shengda Packaging Group Inc. is a leading paper packaging company in China. It is principally engaged in the design, manufacturing and sale of flexo-printed and color-printed corrugated paper cartons in a variety of sizes and strengths. It also manufactures corrugated paperboards, which are used for the production of its flexo-printed and color-printed cartons.