Paper packaging manufacturer China Shengda Packaging Group has posted a 19.4% decrease in revenues to $30.8m for the fourth quarter of 2011 compared to $38.2m during the same period of 2010.
The fall was primarily due to lower sales volume, which declined 18.9 million square metres or 19% to 80.4 million square metres from 99.3 million square metres in 2010, China Shengda said.
Revenue for the full year 2011 decreased by 4.7% to $124m from $130.1m in 2010, mainly due to decrease in sales volume by 23.2 million square metres or 6.7% to 321.7 million square metres against 344.9 million square metres in 2010.
Gross profit for the quarter declined 40.3% to $6.4m from $10.8m a year ago, and for the full year decreased by $10.8m or 29.7% to $25.7m from $36.5m compared to 2010.
The company's colour cartons accounted for 24.9% of total revenues in the fourth quarter of 2011 and flexo cartons accounted for 75.1% compared to 25.6% and 74.4%, respectively against 2010.
During the quarter, gross profit from colour cartons declined 40.7% to $1.8m from $3.1m and gross margin declined to 20.8% from 28.1% in the same period of 2010.
Net income for the quarter decreased to $1.6m from $5.3m in 2010.
For the full year, the company's net income decreased by $9.7m or 50.1% to $9.6m from $19.3m.
China Shengda is principally engaged in the design, manufacturing and sale of flexo-printed and colour-printed corrugated paper cartons in a variety of sizes and strengths.