Apr. 26, 2012 (China Knowledge) - Shandong Chenming Paper Holdings Ltd<000488><200488><1812>, a leading paper producer in China, announced yesterday that its net profit plunged 93.47% year on year to RMB 15.37 billion in the first quarter of this year, widening from a 47.71% drop in 2011.

The paper maker said that the significant drop in net profit was a result of low paper prices and falling gross profit margin.

The company's operating revenue increased 12.73% year on year to RMB 4.75 billion in the first quarter.

Chenming Paper said earlier that its net profit fell 47.71% year on year to RMB 608 million last year. The company booked RMB 17.75 billion in operating revenue in 2011, 3.16% more than in the previous year, according to an earlier report from China Knowledge.