IT Tech Packaging, Inc. Advances Additional Orders Negotiation with One of Its Top 5 Customers

Rhea-AI Summary

IT Tech Packaging, Inc. (NYSE American: ITP) has announced ongoing negotiations with a key customer in Shandong Province, which is among its top five clients. This collaboration aims for increased orders of diverse paper products in the upcoming quarters, with contracts expected to be finalized by year-end. The CEO, Zhenyong Liu, highlighted the recovery of the Chinese economy post-COVID-19, noting that top clients in printing and packaging are experiencing heightened demand and backlogs, leading to an increase in purchase orders.

Positive

• Advancing negotiations with a top customer could lead to increased order volumes.
• Expected new contracts by year-end, indicating a long-term partnership.
• Recovery of the Chinese economy post-COVID-19 may boost demand for products.

Negative

• None.

BAODING, China, Sept. 24, 2020 /PRNewswire/ -- IT Tech Packaging, Inc. (NYSE American: ITP) ("IT Tech Packaging" or "the Company"), a leading manufacturer and distributor of diversified paper products in North China, today announced that the Company is advancing negotiation with one of its top 5 customers, based in Shandong Province for orders of the paper products. The customer is currently ranked among the top 5 customers of the Company during the past couple of years.

Based on the negotiation, the Company and the customer will further cooperate on products supply and purchase in the next quarters and definitive new contracts are expected to be signed by the end of the year. Based on its increasing clients' demand, the customer will continue to increase its purchase orders from the Company.

Mr. Zhenyong Liu, Chairman and Chief Executive Officer of IT Tech Packaging commented, "We are pleased with the negotiation with the customer for further partnership. As Chinese economy recovers from the COVID-19 epidemic with an amazing pace, our top clients such as companies focusing on printing and packaging are also receiving amount of orders and some even have backlog of orders, so they push forward the negotiations for raw materials and increase purchase volume of our products. We appreciate their confidence in our products as well as efficiency of delivery. We hope the stable partnership between us will continue contributing considerable revenue stream in the upcoming quarters."

About IT Tech Packaging, Inc.

Founded in 1996, IT Tech Packaging, Inc. is a leading manufacturer and distributor of diversified paper products in North China. Using recycled paper as its primary raw material (with the exception of its tissue paper products), ITP produces and distributes three categories of paper products: corrugating medium paper, offset printing paper and tissue paper products. With production based in Baoding and Xingtai in North China's Hebei Province, ITP is located strategically close to the Beijing and Tianjin region, home to a growing base of industrial and manufacturing activities and one of the largest markets for paper products consumption in the country. ITP has been listed on the NYSE American since December 2009.

Safe Harbor Statements

This press release may contain forward-looking statements. These forward-looking statements involve inherent risks and uncertainties that could cause actual results to differ materially from those projected or anticipated, including risks outlined in the Company's public filings with the Securities and Exchange Commission, including the Company's latest annual report on Form 10-K. All information provided in this press release speaks as of the date hereof. Except as otherwise required by law, the Company undertakes no obligation to update or revise its forward-looking statements.

For more information, please contact:

At the Company Email:
ir@itpackaging.cn
Tel: +86 0312 8698215

Investor Relations:
Janice Wang
+86-138-1176-8559
+1-908-510-2351
EverGreen Consulting Inc.
Email: ir@changqingconsulting.com

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SOURCE IT Tech Packaging, Inc.

FAQ

What recent negotiation has IT Tech Packaging, Inc. (ITP) engaged in?

IT Tech Packaging is currently negotiating with a top customer in Shandong Province for increased orders of paper products.

What is the significance of the negotiations for IT Tech Packaging (ITP)?

The negotiations are significant as they may lead to new contracts and increased purchase volumes, contributing to revenue growth.

When are new contracts expected to be finalized for IT Tech Packaging (ITP)?

New contracts are expected to be finalized by the end of the year.

How is the recovery of the Chinese economy impacting IT Tech Packaging (ITP)?

The recovery is driving higher demand for products from key clients in printing and packaging, which is beneficial for IT Tech Packaging.