China Shengda reports rise in Q2 2012 revenue

14 August 2012 (Last Updated August 14th, 2012 18:30)

China Shengda Packaging Group has reported a 12.5% rise in revenues for the second quarter of 2012 to $36.7m, an increase from $32.6m in the same period of 2011.

China Shengda Packaging Group has reported a 12.5% rise in revenues for the second quarter of 2012 to $36.7m, an increase from $32.6m in the same period of 2011.

The increase was primarily due to the increase of sales volume, which was partially countered by the decrease in average prices per square metre.

Revenues for the first half of 2012 increased by 9.4% to $65.1m, compared to $59.5m for the first half of 2011.

According to the Chinese paper packaging manufacturer, the colour cartons accounted for 30.3% of the revenues and flexo cartons accounted for 69.7% of the revenues, versus 28.6% and 71.4%, respectively, for the same period of 2011.

The company's gross profit for the quarter fell by 5.6% to $5.9m, down from $6.2m in the corresponding quarter of 2011, and for the first half, it stood at $11.3m, compared to $13.3m in the corresponding period of the previous year.

During the quarter, gross profit from flexo cartons decreased by 2.5% to $4.1m, compared to $4.2m for the same period of 2011, and gross profit from colour cartons declined by 13.5% to $1.8m, down from $2m.

The fall in the gross profit was primarily due to the 16.7% increase in cost of goods sold associated with increased sales volume compared to the same period of 2011.

China Shengda Packaging Group chief executive officer Daliang Teng said the business environment remained challenging in accordance with the company's expectations.

"We added new customers and increased our sales volumes and revenues significantly compared to last year," Teng said.

China Shengda Packaging Group provides paper packaging solutions to a wide variety of industries, including food, beverage, cigarette, household appliances, consumer electronics, pharmaceuticals, chemicals, machinery and other consumer and industrial sectors in the Asian country.