China Shengda Packaging Group, (NASDAQ:CPGI)

HANGZHOU, China, September 16, 2015 /PRNewswire/ -- China Shengda Packaging Group Inc. (NASDAQ: CPGI) ("Shengda" or the "Company"), a leading Chinese paper packaging company, today announced that on September 15, 2015 it was informed by Mr. Nengbin Fang, its Chairman, Mr. Wuxiao Fang, Ms. Congyi Fang, its director, Mr. Yueming Qi, Mr. Baishun Shen, Mr. Guofang Wang, Mr. Zumao Shi, Ms. Lanfang Zhang, Bigtree Capital Limited, Mr. Zhanggen Xu, Mr. Jinfa Ye, Mr. Huohong Wang, Mr. Daliang Teng, its Chief Executive Officer, Ms. Haihua Yu, Envision Capital Partners, L.P., CSV China Opportunities Fund, L.P., Ray Shi China Small Mid Cap Select Fund, LB Holdings II, LLC and Newberg Road Partners, L.P., representing certain other shareholders (collectively, the "Contributing Stockholders") that, pursuant to a contribution and subscription agreement, dated as of May 21, 2015, by and among the Contributing Stockholders, Yida International Holdings Limited, a British Virgin Islands company ("Parent"), Yida International Acquisition Limited, a newly formed Nevada company and wholly owned subsidiary of Parent ("Merger Sub"), and Eastlake Capital Limited, a British Virgin Islands company wholly-owned by Mr. Nengbin Fang, (i) the Contributing Stockholders contributed all of their shares of common stock of Shengda, par value $0.001 per share (the "Shares") to Parent, which represent approximately 90.8% of the total issued and outstanding shares of Shengda, and (ii) Parent contributed the Shares to Merger Sub.

As a result of these transactions, Merger Sub acquired approximately 90.8% of the total issued and outstanding shares of common stock of Shengda. On September 15, 2015, Shengda and Merger Sub filed the Articles of Merger with Shengda and Merger Sub (the "Merger") became effective on September 15, 2015. As a result of the Merger, Shengda became a wholly owned subsidiary of Parent. The Company also announced today that at its request, on September 15, 2015, the NASDAQ Stock Market LLC filed a delisting application on Form 25 with the Securities and Exchange Commission (the "SEC") to delist and deregister the Company's common stock. Shengda expects to file a Form 15 with the SEC to terminate its reporting obligations as a public company under the U.S. securities laws on or about September 25, 2015. The Company's obligations to file with the SEC certain reports and forms, including Form 10-K, Form 10-Q and Form 8-K, will be suspended immediately as of the filing date of the Form 15. Existing stockholders of the Company's common stock will be notified by mail of the cancellation of their shares and their right to receive $7.25 in cash per share upon the submission of their stock certificates in accordance with proper procedures.

Second Quarter 2015 Financial Results

Overall revenues increased by $2.5 million, or 6.6%, to $39.7 million for the second quarter of 2015 from $37.2 million for the same period of last year.

Item 8.01.  Other Events.
 

As previously disclosed, China Shengda Packaging Group Inc., a Nevada Corporation (the “Company”) received a letter from The NASDAQ Stock Market, dated June 12, 2014, notifying the Company that it did not comply with the $1.00 minimum closing bid price requirement for continued listing under the NASDAQ Listing Rules. On June 3, 2015, the Company received a letter from The NASDAQ Stock Market stating that it has regained compliance with the minimum bid price requirement for continued listing on The NASDAQ Capital Market.

After the Company effected a 1-for-5 reverse split on May 18, 2015, NASDAQ has determined that for the last 10 consecutive business days, from May 19 to June 2, 2015, the closing bid price of the Company’s common stock has been at US$ 1.00 per share or greater. Accordingly, the Company has regained compliance with Listing Rule 5450(a)(1) and this matter is now closed.

HANGZHOU, China, May 19, 2015 /PRNewswire-FirstCall/ -- China Shengda Packaging Group Inc. (NASDAQ: CPGI) ("Shengda" or the "Company"), a leading Chinese paper packaging company, announced today that it has filed a Certificate of Change pursuant to Section 78.209 of the Nevada Revised Statutes with the Nevada Secretary of State to effect a one (1) -for- five (5) reverse stock split ("Reverse Split") of the authorized and issued and outstanding common stock, par value $0.001 per share ("Common Stock"). The Reverse Split will be effective at 4:30pm Eastern Standard Time on May 18, 2015, and the Company's Common Stock will begin trading on the Nasdaq Capital Market ("Nasdaq") on a split-adjusted basis at the market opening on May 19, 2015. The Company's Common Stock will continue to trade on Nasdaq under the symbol "CPGI" but with a new CUSIP number 16950v 206.

As a result of the Reverse Split, every five issued and outstanding shares of the Company's Common Stock will automatically be combined into one issued and outstanding share. This will reduce the total number of issued and outstanding shares of Common Stock from 38,790,811 to approximately 7.76 million, and the Company's authorized shares of Common Stock from 190,000,000 to 38,000,000. No fractional shares will be issued, and no cash or other consideration will be paid. All fractional shares created by the Reverse Split will be rounded up to the nearest whole share.

The Reverse Split is intended to increase the per share trading price of the Company's Common Stock to satisfy the $1.00 minimum bid price requirement for continued listing on the Nasdaq.

Item 5.03  Amendments to Articles of Incorporation or Bylaws; Change in Fiscal Year. 

China Shengda Packaging Group Inc. (the “Company”) filed a Certificate of Change (the “Certificate”) pursuant to Nevada Revised Statutes (“NRS”) Section 78.209 with the Secretary of State of the State of Nevada to effect a reverse stock split (the “Reverse Split”) of the Company’s authorized and issued and outstanding common stock, par value $0.001 per share (the “Common Stock”), at an exchange ratio of 1-for-5. The Certificate has the effect of amending the Company’s Articles of Incorporation. A copy of the Certificate is attached hereto as Exhibit 3.1 and incorporated herein by reference.

The Reverse Split was duly approved by the Board of Directors of the Company without shareholder approval, in accordance with the authority conferred by Section 78.207 of the NRS. The Reverse Split became effective at 4:30 pm Eastern Standard Time on May 18, 2015 (the “Effective Time”). As a result of the Reverse Split, the total number of issued and outstanding shares of Common Stock decreased from 38,790,811 to approximately 7.76 million, and the Company’s authorized shares of Common Stock simultaneously decreased from 190,000,000 to 38,000,000 shares. No fractional shares will be issued, and no cash or other consideration will be paid. All fractional shares created by the Reverse Split were rounded up to the nearest whole share.

First Quarter 2015 Financial Results:

• Overall revenues increased by 17.5% to $37.9 million for the first quarter of 2015 mainly driven by increase in sales volume of paper cartons and other paper products mainly because Shengda Zhongtian and Shengda Concept commenced production in the first quarter of 2015.
• Basic and diluted loss per share were $0.00 for the first quarter of 2015, compared with $0.01 for the same period of last year.

Mr. Daliang Teng, Chief Executive Officer of Shengda, commented, "While Q1 historically had been a light quarter for our business due to the Chinese New Year, we managed to grow our overall revenues by 17.5% year-over-year mainly because our subsidiaries Shengda Zhongtian and Shengda Concept started to contribute in the first quarter of 2015. Gross margin increased by 40 basis points as we further cut losses from our corrugating medium paper business while operating loss also reduced year-over-year as we kept our expenses under tight control."

Mr. Teng continued, "Despite continuing macro weakness in the near future, we believe our further vertical integration and geographical expansion, combined with our stringent cost control, will allow us to continue to grow our business and improve our market position."

HANGZHOU, China, March 31, 2015 /PRNewswire-FirstCall/ -- China Shengda Packaging Group Inc. (NASDAQ: CPGI) ("Shengda" or the "Company"), a leading Chinese paper packaging company, today reported its financial results for the fiscal year ended December 31, 2014.

Mr. Daliang Teng, Chief Executive Officer of Shengda commented, "2014 remained a challenging year for the Chinese paper packaging industry as China's economic growth rate fell to its lowest level in a quarter century, marking a likely end of a high-growth heyday. This, combined with tightened credit environment, prompted many of our customers to put their expansion plan on hold and, consequently, limited our ability to grow our paper cartons business during the year of 2014. However, our overall revenues grew 13.7% to $152.6 million for the year of 2014, thanks to increased contribution from our corrugating medium paper business which saw its sales volume more than doubled in 2014, highlighting our strengthened market position through vertical integration."

Mr. Teng continued, "While the Chinese paper packaging industry is likely to face continuing macro headwinds and intensifying competition in the near future, we believe that Shengda is on a solid footing with our unwavering efforts to grow our businesses through the combination of vertical integration and geographical expansion."

Full Year 2014 Financial Highlights:

• Revenues increased by 13.7% year-over-year to $152.6 million for the year of 2014 mainly driven by increase in sales volume of corrugating medium paper which increased 128.5% to 117.7 thousand tons from 51.5 thousand tons for the year of 2013.
• Operating margin improved 48 basis points to 2.1% for the year of 2014 from 1.6% for the year of 2013, as selling, general and administrative expenses as a percentage of revenues decreased, more than offset by slight decrease in overall gross margin.
• Net income attributable to the Company's stockholders decreased by $0.1 million or 5.7%, to $2.6 million for the year of 2014.
• Basic and diluted earnings per share were essentially unchanged at $0.07 for the years of both 2014 and 2013.

HANGZHOU, China, Dec. 11, 2014 /PRNewswire-FirstCall/ -- China Shengda Packaging Group Inc. (CPGI) ("Shengda" or the "Company"), a leading Chinese paper packaging company, today announced it received a letter from NASDAQ (the "NASDAQ Notice"), granting the Company an additional 180-day period, or until June 8, 2015, to regain compliance with NASDAQ's minimum $1.00 bid price per share rule (the "Bid Price Rule") for continued listing on the NASDAQ Capital Market.

The NASDAQ Notice, dated December 10, 2014, notified the Company that while the Company had not regained compliance with the Bid Price Rule, it was eligible for an additional 180-day grace period, until June 8, 2015 (the "Expiration Date"), to regain compliance with the Bid Price Rule. NASDAQ's determination was based on the Company having met the continued listing requirement for market value of publicly held shares and all other applicable requirements for initial listing on the NASDAQ Capital Market, with the exception of the Bid Price Rule, and on the Company's written notice to NASDAQ of its intention to cure the deficiency during the second compliance period by effecting a reverse stock split, if necessary.

Item 3.01  Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing 

On June 12, 2014, China Shengda Packaging Group Inc. (the “Company”) received a letter from The Nasdaq Stock Market ("NASDAQ") notifying it of its failure to maintain a minimum closing bid price of $1.00 over the then preceding 30 consecutive trading days for its common stock as required by NASDAQ Listing Rule 5550(a)(1) (the "Bid Price Rule"). The letter stated that the Company had until December 9, 2014 to demonstrate compliance by maintaining a minimum closing bid price of at least $1.00 for a minimum of 10 consecutive trading days.

On December 10, 2014, NASDAQ notified the Company that while the Company had not regained compliance with the Bid Price Rule, it was eligible for an additional 180-day grace period, until June 8, 2015 (the “Expiration Date”), to regain compliance with the Bid Price Rule. NASDAQ’s determination was based on the Company having met the continued listing requirement for market value of publicly held shares and all other applicable requirements for initial listing on the NASDAQ Capital Market, with the exception of the Bid Price Rule, and on the Company’s written notice to NASDAQ of its intention to cure the deficiency during the second compliance period by effecting a reverse stock split, if necessary. NASDAQ also informed the Company that if the Company chooses to implement a reverse stock split, it must complete the split no later than ten business days prior to the Expiration Date in order to timely regain compliance.

The letter also disclosed that in the event the Company does not regain compliance with the Bid Price Rule by the Expiration Date, NASDAQ will provide written notification that the Company’s securities will be delisted. At that time, the Company may appeal NASDAQ's determination to delist its common stock to a NASDAQ Hearings Panel. The Company will monitor the closing bid price of its common stock and will consider various possible options, and, if necessary, it intends to affect a reverse stock split, to regain compliance by the Expiration Date.

HANGZHOU, China, Dec. 11, 2014 /PRNewswire-FirstCall/ -- China Shengda Packaging Group Inc. (NASDAQ: CPGI) ("Shengda" or the "Company"), a leading Chinese paper packaging company, today announced it received a letter from NASDAQ (the "NASDAQ Notice"), granting the Company an additional 180-day period, or until June 8, 2015, to regain compliance with NASDAQ's minimum$1.00 bid price per share rule (the "Bid Price Rule") for continued listing on the NASDAQ Capital Market.

The NASDAQ Notice, dated December 10, 2014, notified the Company that while the Company had not regained compliance with the Bid Price Rule, it was eligible for an additional 180-day grace period, until June 8, 2015 (the "Expiration Date"), to regain compliance with the Bid Price Rule. NASDAQ's determination was based on the Company having met the continued listing requirement for market value of publicly held shares and all other applicable requirements for initial listing on the NASDAQ Capital Market, with the exception of the Bid Price Rule, and on the Company's written notice to NASDAQ of its intention to cure the deficiency during the second compliance period by effecting a reverse stock split, if necessary.

Third Quarter 2014 Financial Results

• Revenues increased by 18.4% to a record level of $47.3 million for the third quarter of 2014 with revenues of paper cartons and other paper products and corrugating medium paper increasing 7.7% and 72.4%, to $36.7 million and $12.0 million, respectively.
• Net income attributable to the Company's stockholders was $1.3 million, or $0.03 per basic and diluted share, for the third quarter of 2014. This compared to net income attributable to the Company's stockholders of $0.5 million, or $0.01 per basic and diluted share, for the same period of last year.

Mr. Daliang Teng, Chief Executive Officer of Shengda, commented, "We are pleased to report strong results for the third quarter of 2014 with revenues growing 18.4% year-over-year and reaching the highest level in company history, thanks to solid increase in sales volume of paper cartons and other paper products as well as strong revenue contribution from the corrugating medium paper business. Our margins, both gross and operational, also increased from the last year levels, leading to highest net profit in two years."

Mr. Teng continued, "Despite challenging economic backdrop in the midst of slowing GDP growth, tightened credit environment, and heightened effort by the central government to crackdown on corruption and excess government spending, our unwavering focus on vertical integration and geographical expansion and stringent cost control continue to allow us to executive well and deliver solid results for our shareholders. We look forward to continuing healthy growth and improving market position of our business in coming quarters."

Item 3.01 Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing.

On October 23, 2014, China Shengda Packaging Group, Inc. (the "Company") received notification from the NASDAQ Listing Qualifications Department of the NASDAQ Stock Market ("NASDAQ") that the Company's application to list its common stock on The NASDAQ Capital Market has been approved, and that the Company's securities are transferred from The NASDAQ Global Market to The NASDAQ Capital Market at the opening of trading on The NASDAQ Capital Market on October 27, 2014. The NASDAQ Capital Market is a continuous trading market that operates in substantially the same manner as The NASDAQ Global Market. All companies whose securities are listed on The NASDAQ Capital Market must meet certain financial requirements and adhere to NASDAQ's corporate governance standards. The Company's common stock continues to trade under the symbol "CPGI".

As previously announced, on June 12, 2014, the Company received a deficiency notice from NASDAQ advising the Company that the closing bid price of its common stock had been less than $1.00 per share for more than 30 consecutive business days. Under NASDAQ rules, the Company had 180 days, or until December 9, 2014 (the "Compliance Date"), to regain compliance by maintaining a minimum closing bid price of at least $1.00 for at least ten consecutive business days. The Company voluntarily applied to transfer the listing of its common stock from the NASDAQ Global Market to the NASDAQ Capital Market.

If compliance with the $1.00 bid price requirement cannot be demonstrated by December 9, 2014, the Company may be eligible for an additional compliance period if it meets the continued listing requirement for market value of publicly held shares and all other initial listing standards for the NASDAQ Capital Market, with the exception of the bid price requirement. Additionally, the Company must, no later than the expiration of the Compliance Date, provide written notice to NASDAQ of its intention to cure the deficiency. NASDAQ will review the Company and if eligible will grant the additional compliance period. However, if it appears that the Company will not be able to cure the deficiency, or if the Company is otherwise not eligible for the Capital Market, NASDAQ will provide written notice of delisting.

Second Quarter 2014 Financial Results

• Revenues increased by 11.2% to $37.2 million for the second quarter of 2014 with revenues of paper cartons and other paper products decreasing 8.9% to $29.9 million as a result of decreases in both sales volume and average price per square meter.
• Net income attributable to the Company's stockholders was $1.1 million, or $0.03 per basic and diluted share, for the second quarter of 2014. This compares to net income attributable to the Company's stockholders of $0.8 million, or $0.02 per basic and diluted share, for the same period of last year.

Mr. Daliang Teng, Chief Executive Officer of Shengda, commented, "We are pleased to announce solid second quarter results with revenues increasing both annually and sequentially, thanks to continued ramp of the paper mill at our Shuangsheng subsidiary that contributed $10.7 million in revenues and more than offset the weakness in our paper cartons business. Our gross margin continued to recover and reached the highest level to 17.4% since the second quarter of 2013, benefitting from lower material cost for our paper cartons business and narrower loss at Shuangsheng."

Mr. Teng continued, "While economic headwinds will likely continue to sap our customers' ability to expand, therefore negatively affecting our paper cartons business in the near term, we remain confident that the long-term growth prospects of our market, our vertical integration and geographical expansion strategy, and our execution capabilities will allow us to deliver significant long-term returns for our shareholders."

Item 3.01  Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing 

On June 12, 2014, China Shengda Packaging Group Inc. (the “Company”) received a letter from The Nasdaq Stock Market ("NASDAQ") notifying it of its failure to maintain a minimum closing bid price of $1.00 over the then preceding 30 consecutive trading days for its common stock as required by NASDAQ Listing Rule 5550(a)(1) (the "Bid Price Rule"). The letter stated that the Company has until December 9, 2014 to demonstrate compliance by maintaining a minimum closing bid price of at least $1.00 for a minimum of 10 consecutive trading days. The letter was issued in accordance with standard NASDAQ procedures. This notification has no immediate effect on the listing of the Company's common stock at this time. The Company intends to monitor the bid price of its common stock and consider available options if its common stock does not trade at a level likely to result in the Company regaining compliance with the Bid Price Rule by December 9, 2014.

The letter also disclosed that in the event the Company does not regain compliance with the Bid Price Rule by December 9, 2014, the Company may be eligible for additional time. The Company would be required to meet certain continued listing requirements and the initial listing criteria for The NASDAQ Capital Market except for the bid price requirement and will need to provide written notice of its intention to cure its deficiency during the second compliance period. If it meets these criteria, NASDAQ staff will notify the Company that it has been granted an additional 180 day compliance period. If the Company is not eligible for an additional compliance period, NASDAQ will provide the Company with written notification that its common stock will be delisted. At that time, the Company can appeal NASDAQ's determination to delist its common stock to a NASDAQ Hearings Panel.

First Quarter 2014 Financial Results

• Revenues increased by 19.2% to $32.3 million for the first quarter of 2014 with revenues of paper cartons and other paper products decreasing 3.6% to $26.1 million mainly due to decrease in sales volume.
• Net loss attributable to the Company's stockholders was $0.5 million or net loss of $0.01 per basic and diluted share for the first quarter of 2014. This compares to net income attributable to the Company's stockholders of 0.9 million, or $0.02 per basic and diluted share for the same period of last year.

Mr. Daliang Teng, Chief Executive Officer of Shengda, commented, "With China's economy losing steam and People's Bank further tightening its belt this year, our customers across different industries were increasingly reluctant to carry out their expansion plan, affecting our ability to grow our paper packaging business. As a result, our paper packaging business declined slightly in the first quarter with sales volume and revenues decreasing 1.9% and 3.6%, respectively. The paper mill at our subsidiary Jiangsu Shuangsheng Paper Technology Development Co., Ltd. ("Shuangsheng") continued to progress well, contributing $9.3 million in revenues and leading to a 19.2% growth of overall revenues in the first quarter."

Mr. Teng continued, "While gross margin for our paper packaging business held up well, expanding from 19.5% for the first quarter of last year to 20.7% this quarter, our overall gross margin shrank significantly to just 12.8% in the first quarter as the paper mill remained a drag for our overall gross margin while we have continued to increase its production. Looking forward, despite near term headwinds facing the paper packaging industry, we believe our continued efforts in vertical integration and geographic expansion will position us well for future growth."

HANGZHOU, China, March 29, 2014 /PRNewswire-FirstCall/ -- China Shengda Packaging Group Inc. (NASDAQ: CPGI) ("Shengda" or the "Company"), a leading Chinese paper packaging company, today reported its financial results for the fiscal year ended December 31, 2013.

• Total revenues for the year ended December 31, 2013 increased by $8.9 million, or 7.1% to $134.2 million from $125.3 million for the year of 2012.
• Basic and diluted earnings per share were $0.07 for the year of 2013, compared to $0.14 for the year of 2012.

"2013 was another challenging year for the paper packaging industry as China's economy appeared to lose some steam in the past couple of years. This, combined with tightened credit environment, compelled many of our customers to put their expansion plans on hold, and therefore, our ability to grow our paper carton business. Despite these challenges, we grew our revenues by 7.1% to $134.2 million with the paper mill at our Shuangsheng subsidiary, generating $18.5 million in sales which offset the slight decline in our paper carton business," commented Mr. Daliang Teng, Chief Executive Officer of Shengda, "Looking ahead, as the central government starts to induce a transition from the pursuit of pure GDP growth to more sustainable and quality economic growth, we believe the outlook for the paper packaging industry remains tempered in the near term. However, as we continue focusing on growing our business through both vertical integration and geographical expansion, we are confident of the long-term growth prospect of our business."

Third Quarter 2013 Results

• Revenues increased by 20.9% year-over-year to $39.9.million for the third quarter of 2013 with revenues for paper cartons and other paper products increasing 3.1% to $34.1 million and revenues for raw paper contributing $5.9 million.
• Basic and diluted earnings per share were $0.01 for the third quarter of 2013, as compared to $0.04 for the same period of last year.

Mr. Daliang Teng, Chief Executive Officer of China Shengda Packaging Group commented, "Despite continued challenges in economic environment, we continued to grow our paper cartons business in the third quarter which grew 3.1% to the highest level since 2Q12. We are also pleased to see our paper mill starting to contribute meaningfully to our business, generating $5.9 million, or approximately 15% of total revenues, in the third quarter. With the continuing ramp of the paper mill and our heightened efforts in sales and marketing for our paper carton business, we believe Shengda is well positioned in years to come."

Second Quarter 2013 Financial Results:

• Revenues decreased by 8.6% year-over-year to $33.5 million for the second quarter of 2013 with revenues for paper cartons and other paper products decreasing 10.4% to $32.8 million and revenues for raw paper contributing $0.7 million. The decline in revenues from paper cartons and other paper products are mainly due to lower sales volume.
• Gross profit decreased by 17.5% to $4.8 million for the second quarter of 2013 from $5.9 million for the same period of 2012. Gross margin decreased by 155 basis points to 14.4% for the second quarter of 2013.
• Net income attributable to the Company's stockholders decreased by $0.9 million, or 54.2%, to $0.8 millionfor the second quarter of 2013 from $1.7 million for the same period of last year.
• Basic and diluted earnings per share were $0.02 for the second quarter of 2013, as compared to $0.04 for the same period of last year.

Mr. Daliang Teng, Chief Executive Officer of China Shengda Packaging Group commented, "Our revenues for the three months ended June 30, 2013 declined to $33.5 million from $36.7 million for the same period of last year, mainly due to the decline in paper cartons sales volume and partially offset by $0.7 million in revenues from the newly completed paper mill which went into production on June 17, 2013. The decline in paper cartons sales volume was mainly a result of continued challenges in light of China's slowing GDP growth trend. Looking ahead, we expect our continued ramp-up of the paper mill to contribute meaningfully to our revenues and to partially offset the weakness in our packaging business."

First Quarter 2013 Financial Results

• Revenues decreased by 4.8% to $27.1 million for the first quarter of 2013, mainly due decrease in sales volume.
• Gross profit decreased by 3.1% to $5.3 million for the first quarter of 2013 from $5.5 million for the same period of 2012. Gross margin increased by 34 basis points to 19.5% for the first quarter of 2013.
• Net income attributable to the Company's common stockholders decreased by $0.6 million, or 43.3%, to $0.9 million for the first quarter of 2013 from $1.5 million for the same period of 2012.
• Basic and diluted earnings per share were $0.02 for the first quarter of 2013, as compared to $0.04 for the same period of last year.

Mr. Daliang Teng, Chief Executive Officer of China Shengda Packaging Group commented, "Our revenues for the three months ended March 31, 2013 declined slightly to $27.1 million from $28.5 million for the same period of last year mainly due to the decline in overall sales volume, reflecting continued challenges in macro environment faced by our customers. However, we are pleased to see our gross margin continue to improve, increasing approximately 34 basis points from the same period of last year and 18 basis points sequentially. We are also excited to announce that the construction of our paper mill is finally near its completion and we expect production to commence by the end of the second quarter of 2013.

HANGZHOU, China, November 2, 2012 /PRNewswire-FirstCall/ -- China Shengda Packaging Group Inc. (NASDAQ: CPGI) ("China Shengda Packaging" or the "Company"), a leading Chinese paper packaging manufacturer, today announced that that it has regained compliance with the minimum bid-price requirement of the NASDAQ Stock Market ("NASDAQ") for continued listing of the Company's common stock.

As previously disclosed, the Company received a notice from the NASDAQ on May 7, 2012 that its common stock had failed to maintain a minimum bid-price of $1.00 over the previous 30 consecutive business days, as required by the Listing Rules of the NASDAQ.

On October 30, 2012, the Company received confirmation from the NASDAQ that it had regained compliance with continued listing standards under Listing Rule 5450(a)(1), after the closing bid-price of the Company's common stock had been $1.00 per share or greater for the last 10 consecutive business days, i.e., from October 15, 2012 to October 26, 2012.

HANGZHOU, China, Oct. 15, 2012 /PRNewswire-FirstCall/ -- China Shengda Packaging Group Inc. (NASDAQ: CPGI) ("China Shengda Packaging" or the "Company"), a leading Chinese paper packaging manufacturer, today announced that that its Board of Directors has received a preliminary, non-binding proposal (the "Proposal") from its Chairman, Mr. Nengbin Fang ("Mr. Fang"), in which Mr. Fang has offered to acquire all of the outstanding shares of the Company's common stock he and his family currently do not own in a going-private transaction at a proposed price of$1.40 per share to be paid in cash. According to the Proposal, Mr. Fang intends to fund the acquisition with a combination of debt and equity financing. Currently, Mr. Fang and his family collectively beneficially own approximately 54.03% of the Company's common stock. A copy of the proposal letter is attached as Exhibit A.

The Company's Board of Directors has established a special committee (the "Special Committee") to consider this Proposal and any additional proposals that may be made by Mr. Fang and his affiliates, if any. The Special Committee is comprised of the following independent directors of the Company: Mr. Zhihai Mao , Mr. Michael Zhang , and Mr. Yaoquan Zhang .

There can be no assurance that any definitive offer will be made, that any agreement will be executed, or that a transaction with Mr. Fang or any other transaction will be approved or consummated.

Second Quarter 2012 Results

• Revenues increased 12.5% to $36.7 million from $32.6 million in the prior year period.
• Gross profit declined 5.6% to $5.9 million from $6.2 million in the same period of 2011.
• Net income attributable to common stockholders decreased 27.1% to $1.7 million, or $0.04 per diluted share, from $2.3 million, or $0.06 per diluted share, in the same period of 2011.

"The business environment remains challenging and in line with our expectations as previously reported. Pricing is somewhat stable but raw material costs continue to rise beyond our ability to pass them along to our customers. In that context, the second quarter produced a solid performance. We added new customers and increased our sales volumes and revenues significantly compared to last year. The apparent per meter price decline is mainly a function of sales mix. Gross margins declined due to higher raw materials costs, but control of our operating costs enabled us to generate operating income in line with our expectations," said Mr. Daliang Teng, Chief Executive Officer of China Shengda Packaging.

Business Outlook

The Company reiterates its expectations for fiscal 2012 revenues of between $115 million and $125 million, net income of between $6.5 million and $7.5 million, and diluted earnings per share of between $0.17 and $0.19.

The Company continues to anticipate slow growth in demand from its client base as industries in the Yangtze River Delta experience modest growth in domestic demand and reduced export demand for their products. "We are pleased with our efforts to address this environment with better service levels, keen prices and new products, and with the response of our top line to this difficult market," said Mr. Teng. "We are continuing to negotiate with major new customers today, emphasizing color printing which commands higher pricing."

Mr. Teng concluded, "The second quarter developed along the lines we expected and our outlook for the year is broadly unchanged. We maintain our focus on adding new customers, providing top class customer service and controlling costs. We are looking forward to the opening of our paper mill at the end of the year and its contribution to the control of the cost of our raw materials."

Fourth Quarter 2011 Results

• Revenues decreased $7.4 million, or 19.4%, to $30.8 million for the three months ended December, 31, 2011, from $38.2 million during the same period of 2010
• Gross profit declined 40.3% to $6.4 million from $10.8 million in the same period of 2010. Gross profit from flexo cartons declined 40.2% to $4.6 million from $7.7million in the same period of 2010.
• Net income attributable to common stockholders decreased to $1.6 million, or $0.05 per diluted share, from $5.3 million, or $0.16 per diluted share, in the same period of 2010.

"Revenues of $124 million and net income of $9.6 million were within our guidance ranges for full year 2011. However our markets and our financial performance are currently volatile due to cross-currents of variability affecting the global consumer who buys the final products from our manufacturing customers. We are concentrating on broadening our customer base and vertically integrating into paper manufacture in order to grow our business and at the same time reduce fluctuations in revenues and margins," Mr. Daliang Teng, Chief Executive Officer of China Shengda Packaging, said.

HANGZHOU, China, Dec. 23, 2011 /PRNewswire-Asia-FirstCall/ -- China Shengda Packaging Group Inc. (NASDAQ: CPGI) ("China Shengda Packaging" or the "Company"), a leading Chinese paper packaging manufacturer, is revising its financial guidance for the year ending December 31, 2011 as follows:

    $ millions            Revised guidance        Previous Guidance            Actual 2010  

Net Income           $120 to $130            $115 to $125                        $130
Revenues              $9.5 to $10.5            $11.5 to $12.5                      $19.3
 
As was pointed out in the earnings press release for the third quarter of 2011, lower raw materials cost trends that were appearing in October might not persist during the remainder of the fourth quarter, and this has proven to be the case. Higher than anticipated raw materials costs are the main reason why gross profits are expected to be lower in the fourth quarter than was previously expected. Those additional costs are not being entirely passed on to customers. If these conditions persist, the Company also expects to enter 2012 with gross margins under pressure from raw materials costs.

Third Quarter 2011 Results

Revenues increased $2.7 million, or 8.7%, to $33.6 million for the three months ended September, 2011, from $30.9 million during the same period of 2010.

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

"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," Mr. Daliang Teng, Chief Executive Officer 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 fourth quarter, raw materials prices appear to be softening and we expect to meet our full year guidance for both sales and EPS."

HANGZHOU, China, July 18, 2011 /PRNewswire-Asia-FirstCall/ -- China Shengda Packaging Group Inc. (NASDAQ: CPGI) ("China Shengda Packaging" or the "Company"), a leading Chinese paper packaging manufacturer, today announced that its board of directors has approved a share repurchase program for up to $5 million of its common stock over the next twelve months, subject to market and other conditions.

HANGZHOU, China, June 16, 2011 /PRNewswire-Asia/ -- China Shengda Packaging Group Inc. (NASDAQ: CPGI) ("China Shengda Packaging" or the "Company"), a leading Chinese paper packaging manufacturer, today announced that the Company's Chairman, Mr. Nengbin Fang, has purchased 500,000 shares of China Shengda Packaging stock on the open market for approximately $0.6 million.

Upon the completion of this share purchase, Mr. Fang beneficially owned approximately 5.2 million shares of common stock of the Company, representing an ownership stake of 13.2%.

Mr. Fang commented, "I believe that our Company's shares are currently undervalued. This share purchase demonstrates my confidence in China Shengda Packaging and reflects my commitment to increasing shareholder value. I will consider purchasing additional shares if our share price continues to trade at these levels."

First Quarter Results:

• Revenues declined 2.4% to $26.9 million from $27.6 million in the prior year period.

Mr. Daliang Teng, Chief Executive Officer of China Shengda Packaging, commented, "We did not lose any customers in the first quarter, but our orders from existing customers declined.  Manufacturing enterprises in the YRD, many of whom are our largest customers, felt the impact of more restrictive financial policies implemented by the PBOC during the first quarter of 2011.  In addition, after the Chinese New Year holiday, we experienced an unexpected shortage of workers.  While there are always some percentage of workers that delay or do not return following the Chinese New Year, this phenomenon was more pronounced this year in the YRD region.  As a result of these shortages, we were unable to fulfill certain orders.  Our furniture packaging business saw the greatest impact given that the December to April timeframe is the peak season for the furniture manufacturing industry."

• Net income attributable to common stockholders decreased 20.1% to $3.4 million, or $0.09 per diluted share, from $4.3 million, or $0.16 per diluted share, in the same period of 2010.

The Company expects fiscal 2011 revenues of between $115 million and $125 million, net income of between $11.5 million and $12.5 million, and diluted earnings per share of between $0.29 and $0.32.

The Company currently generates its cash flow through operations which it believes will be sufficient to sustain the current level of operations for at least the next twelve months.

We attempted to estimate our funding requirements in order to implement our growth plans. Our growth plans include growth through acquisitions. Although the proceeds from the public offering closed on December 10, 2010 (the “Public Offering”) should be sufficient for us to implement our near term acquisition strategy, we may require additional capital in order to successfully operate businesses that we acquire.

Fourth Quarter Earnings:

• Revenue increased 54.1% to $38.2 million from $24.8 million in the same period last year
• Gross profit increased 55.7% to $10.8 million from $6.9 million in the same period last year
• Gross margin increased 20 basis points to 28.1% from 27.9% in the same period last year
• Net income attributable to common stockholders increased 55.4% to $5.3 million from $3.3 million in the same period last year
• Diluted earnings per share increased 33.3% to $0.16 from $0.12 in the same period last year

Full Year 2010 Highlights

• Revenue increased 37.4% to $130.1 million from $94.7 million last year
• Gross profit increased 43.5% to $36.5 million from $25.4 million last year
• Gross margin increased 120 basis points to 28.1% from 26.9% last year
• Net income attributable to common stockholders increased 59.1% to $19.3 million from $12.2 million last year
• Diluted earnings per share increased 43.2% to $0.63 from $0.44 last year
• Cash flow from operations increased 18.7% to $20.0 million from $16.8 million last year

"We are very pleased to announce strong sales, earnings, EPS, and operating cash flow growth in 2010," said Mr. Daliang Teng, Chief Executive Officer of China Shengda Packaging. "We have a leading market position and strong reputation in China's paper packaging market and were able to command higher prices for our products as well as achieve higher sales volumes in 2010. The strength of the paper packaging market in China, from which we also benefited, was driven by rising consumer purchasing power and the growth of the Chinese economy. We also increased our margin performance by passing on some of the cost increase of our raw materials to our customers, improving our equipment utilization, reducing waste and processing times, and adding higher margin packaging products to our product portfolio.  The year 2010 was an important one for China Shengda Packaging as our shares began trading on The NASDAQ Global Market in December. We are proud of this accomplishment and look forward to continuing to deliver strong financial results to our shareholders in the years ahead."

Mr. Teng concluded, "We believe we are well positioned to benefit from a number of favorable trends in our market.  China's packaging market is the second largest in the world only after the U.S. Despite China's huge packaging market, per capita paper packaging consumption in China is only a fraction of that in the United States, Japan, and Europe. This suggests a large market potential for paper packaging in China. With environmental concerns becoming an increasingly important topic around the world, packaging materials are expected to be energy saving, toxic-free, reusable, degradable and multi-functional. Government mandates as well as consumer preferences make paper a more environmentally-friendly substitute for metal, plastic or glass as a packaging material. All of the foregoing translates into significant growth potential for the corrugated paper packaging industry in the China. Furthermore, as the standard of living rises, consumers are becoming more discerning about product image and presentation. This increased consumer sophistication translates into growing demand for high-quality and aesthetically pleasing packaging. We are well positioned to take advantage of these market trends as we expand our capacity for color-printed cartons." 

HANGZHOU, China, March 7, 2011 /PRNewswire-Asia/ -- China Shengda Packaging Group Inc.  today announced that on March 7, 2011, the Company signed a Letter of Intent (“LOI”) to purchase the land use rights for a 166,533 square meter plot of land in Yancheng City, Jiangsu Province, China for $11.4 million in order to build a paper manufacturing plant.

The following are some financial highlights for the third quarter of 2010:

• Sales Revenue: Sales revenue increased $6.1 million, or 24.6%, to $30.9 million for the third quarter of 2010 from $24.8 million for the same period of last year.

• Gross Profit: Gross profit of $8.4 million represented 27.2% of sales revenue for the third quarter of 2010, compared with gross profit of $6.7 million that represented 27.0% of sales revenue for the same period in 2009.

• Net Income attributable to China Packaging common stockholders: Net income attributed to our stockholders increased $1.5 million, or 45.9%, to $4.8 million for the third quarter of 2010, from $3.3 million for the same period of last year.

• Basic and fully diluted net income per share: Basic and fully diluted net income per share was $0.15 for the third quarter of 2010, compared with $0.12 for the same period last year.

During the third quarter of 2010, we continued to see strong demand for our products and growth in our revenues. The packaging industry continued to expand during the third quarter of 2010 in large part, we believe, due to Chinese government policies designed to stimulate the economy, and improve infrastructure throughout China and encourage domestic consumption, and growth in urbanization and industrialization throughout China.

We benefited from the economic recovery of the region since the financial crisis in 2008. According to the Development Research Center of the State Council of China, the economy in the YRD region experienced significant growth in 2009 and 2010, representing a GDP growth rate of 7.3% from 2008 to 2009 and 20.6% from the first half of 2009 to the same period of 2010. We expect the economy of the YRD region to continue to grow into the rest of 2010 and 2011, which we believe will provide a favorable macroeconomic environment for our business.

Fiscal 2010 Guidance

We expect that revenues for the fiscal full year of 2010 will be in the range of $122 to $126 million, compared with $94.7 million in 2009.

In October 2010, one of our wholly-owned subsidiary, Zhejiang Great Shengda Packaging Co., Ltd. ("Great Shengda") was qualified as a high-tech company, as a result of which Great Shengda will be entitled to a preferential tax rate of 15% for three years beginning in 2010 and the preferential tax rate will be applied retroactively from January 1, 2010. The preferential tax rate is subject to completion of registration with PRC Ministry of Science and Technology and approval by the local tax bureau. Great Shengda is in the process of registering its high-tech status with the competent authorities.

Subject to the above preferential tax rate, we expect to generate net income attributable to China Shengda Packaging Group Inc. common stockholders in the range of $20 million to $21 million for the full fiscal year of 2010, compared with $12.2 million in 2009. The guidance represents the Company's current view, and is subject to change.

China Packaging Group seeks to raise money

In conjunction with this proposed raise:

"We have applied to list our common stock on The NASDAQ Global Market under the symbol "CGPI."

Update:

• On April 29, 2010, China Packaging Group Inc. entered into a securities purchase agreement  with certain accredited investors. Under the Securities Purchase Agreement, the Company agreed to issue and sell to the Investors 1,456,311 shares of the Company’s common stock, representing approximately 4.63% of the issued and outstanding capital stock of the Company on a fully-diluted basis as of and immediately after consummation of the transactions contemplated by the Securities Purchase Agreement, for an aggregate purchase price of approximately $5 million or $3.433 per share.
  
• The Company agreed to issue to Hangzhou Xin Shengda Investment Co., Ltd. 3,750,000 shares of the Company’s common stock in exchange for the transfer of certain real estate if the lead investor makes a written request on or before the 180th day following the Company’s next underwritten public offering.

Updated share count: 31,453,801 to 35,844,311

China Packaging Group Inc became a public company via a reverse merger transaction on April 8, 2010.

Company Snapshot:

The design, manufacture and sale of paper cartons.We believe we are among the leading paper packaging manufacturers in the PRC in terms of production capacity and have the capacity to take large orders for our customers, many of whom are amongst PRC’s Top 500 Enterprises or Fortune 500 companies.

Industry Snapshot:

The Chinese packaging industry has been growing steadily since the mid-1980s with one of the highest growth rates in the international packaging market. The country's packaging industry remains the world's third largest packaging market since 2006, employing over three million people and worth over $81 billion. The packaging industry became China's 14th largest industry sector and contributes to about 2.5% of the country's GDP.

The domestic packaging industry has evolved greatly with China’s robust economic growth. Since the 1980s, China has established 13,000 packaging companies with a production value of over RMB 400 billion in 2009. It boasts over 4,000 corrugation production lines, greater than the aggregate number in America, Japan and Europe combined. According to the Euromonitor International’s Report of Packaging Industry in China, the total annual output value of the packaging industry is expected to exceed RMB 600 billion at an annual growth rate of 16% by 2015.

Competitive Landscape:

The packaging market in China is highly segmented and competitive. There are over 13,000 paper board manufacturers in China, most of which are relatively small in size. The top 30 manufacturers only have an aggregate of 11% of the Chinese market. The primary barriers to enter the market include obtaining a printing license and significant capital investment in large-scale production facilities. The total sales of paper cartons was 30 billion square meters in 2008.  Great Shengda’s current annual capacity is 310 million square meters, accounting for over 1% of the Chinese market. We believe our competitive advantages are: cost-effectiveness, large production capacity, advanced technologies and equipments deployed in our manufacture process, and our well-known brand name.

Strategy:

We plan to increase our production capacity to meet the expected increase in demand for our products. Further, as consumers place greater emphasis on image and packaging of products, manufacturers of consumer products have increasingly sought to differentiate their products by focusing on the aesthetics of the packaging design and utilizing their product packaging as a medium for advertisement. We plan to focus on the development of our color printing capabilities to cater to this market segment of customers.

We believe that the paper packaging industry has a substantial growth potential. We plan to increase our market share and develop new customers by increasing our existing sales and marketing activities and strengthening our customer service support in regions beyond the Yangtze River Delta Economic District.

Currently, we do not manufacture raw paper, a key raw material for the production of our paper boards and paper cartons. Instead, we have been purchasing raw paper from suppliers based in the PRC. We plan to explore opportunities for acquiring paper manufacturing companies so as to achieve vertical integration of our production process. We expect that such vertical integration will enable us to effectively manage our costs and become a self-sufficient one-stop paper packaging manufacturer that is equipped to manufacture upstream products such as paper as well as downstream products. In addition, to increase vertical integration of our operations, we plan to establish a manufacturing facility in Jiangsu. The manufacturing facility will engage in the production of high-strength raw paper that can be used in the manufacture of our paper cartons.

In order to penetrate into key markets within the Yangtze River Delta Economic District, we plan to set up a processing factory and warehouse in Suzhou. In addition, we plan to strengthen our customer service network by establishing two customer service centers in Nanjing and Wuhu which will be in close proximity to us.

Post Merger Share Calculation:

• 3,038,000 : Pre reverse merger outstanding shares  
• 27,600,000: Newly issued shares of Common Stock

GeoTeam® best effort calculation of total post reverse merger outstanding shares assuming full conversions:  30,638,000

Financial Snapshot: