IT Tech Packaging, Inc. Announces Fourth Quarter and Fiscal Year 2022 Financial Results

Rhea-AI Summary

IT Tech Packaging, Inc. (ITP) reported its fiscal year 2022 results, showing a significant revenue decline of 37.6%, totaling approximately $100.35 million. Gross profit also decreased by 56.9% to about $4.75 million. The fourth quarter alone saw revenue drop by 52.6% to $21.37 million, primarily due to decreased sales volumes across all product categories. The company experienced a net loss of $11.91 million, a stark contrast to net income of $4.16 million in Q4 2021. Despite these challenges, management anticipates a gradual recovery in market demand as the pandemic stabilizes.

Positive

• Management anticipates gradual recovery in market demand as the pandemic stabilizes.
• Total cash provided by operating activities was approximately $10.7 million for 2022, compared to cash used in 2021.

Negative

• Revenue declined by 37.6% for the fiscal year 2022, totaling $100.35 million.
• Fourth quarter revenue fell by 52.6% to approximately $21.37 million.
• Net loss for Q4 2022 was approximately $11.91 million, compared to a net income of $4.16 million in Q4 2021.
• Operating loss for the year was approximately $5.3 million, worsening from income of $1.5 million in 2021.
• Gross profit decreased by 56.9% for the year to $4.75 million.

BAODING, China, March 24, 2023 /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 its unaudited financial results for the fourth quarter and audited financial results for the fiscal year ended December 31, 2022.

Mr. Zhenyong Liu, Chairman and Chief Executive Officer of the Company, commented, "In fiscal year 2022, our business execution was reflected as we generated approximately $100.35 million in revenue and approximately $4.75 million in gross profit. With the domestic business and markets resumption in an orderly manner as the pandemic is gradually under control in China, we expect that the market demand for our products will recover gradually. "

Fourth Quarter 2022 Financial Results
		For the Three Months Ended December 31,
($ millions)		2021		2022		% Change
Revenues		45.05		21.37		-52.6 %
Regular Corrugating Medium Paper ("CMP")*		32.66		17.28		47.1 %
Light-Weight CMP**		7.00		3.77		46.1 %
Offset Printing Paper		2.97		-		-100.0 %
Tissue Paper Products		2.28		0.25		-88.9 %
Face Masks		0.15		0.06		-60.7 %
Gross profit		4.34		1.03		-76.3 %
Gross profit (loss) margin		9.6 %		4.8 %		-4.8pp****
Regular Corrugating Medium Paper ("CMP")*		9.6 %		8.3 %		-1.3 pp****
Light-Weight CMP**		12.2 %		10.3 %		-1.9 pp****
Offset Printing Paper		21.5 %		-		-
Tissue Paper Products***		-13.9 %		-315.2 %		-301.3 pp****
Face Masks		25.2 %		27.5 %		2.3 pp****
Operating income (loss)		1.95		-0.49		-125.2 %
Net income (loss)		4.16		-11.91		-386.6 %
EBITDA		8.66		3.77		-56.5 %
Basic and Diluted earnings (loss) per share		0.45		-1.19		-364.4 %
* Products from PM6
** Products from PM1
*** Products from PM8 and PM9
**** pp represents percentage points

 

• Revenue decreased by 52.6% to approximately $21.37 million, primarily attributable to an decrease in sales volume of all categories of products and decrease in ASP of CMP.
• Gross profit decreased by 76.3% to approximately $1.03 million. Total gross margin decreased by 4.8 percentage point to 4.8%. 
• Loss from operations was approximately $0.49 million, compared to operation income of approximately $1.95 million for the same period of last year.
• Net loss was approximately $11.91 million, or loss of $1.19 per basic and diluted share, compared to net income of approximately $4.16 million, or earnings of $0.45 per basic and diluted share, for the same period of last year.
• Earnings before interest, taxes, depreciation and amortization ("EBITDA") decreased by 56.5% to approximately $3.77million.

Revenue

For the fourth quarter of 2022, total revenue decreased by approximately $23.7 million, or 52.6%, to approximately $21.4 million from approximately $45.0 million for the same period of last year. The decrease in total revenue was mainly due to the decrease in sales volume of CMP, offset printing paper and tissue paper products and the decrease in ASP of CMP and offset printing paper.

The following table summarizes revenue, volume and ASP by product for the fourth quarter of 2022 and 2021, respectively:

	For the Three Months Ended December 31,
	2021						2022
	Revenue ($'000)		Volume  (tonne)		ASP ($/tonne)		Revenue ($'000)		Volume  (tonne)		ASP ($/tonne)
Regular CMP	32,662		57,410		569		17,281		41,941		412
Light-Weight CMP	6,996		12,543		558		3,768		9,365		402
Offset Printing Paper	2,967		3,911		759		-		-		-
Tissue Paper Products	2,278		2,292		994		253		234		1,083
Total	44,903		76,156		590		21,302		51,540		413
	Revenue ($'000)		Volume (thousand pieces)		ASP ($/thousand pieces)		Revenue ($'000)		Volume ($/thousand pieces)		ASP ($/thousand pieces)
Face Masks	146		3,014		49		57		1,330		43

Revenue from CMP, including both regular CMP and light-Weight CMP, decreased by $18.6 million, or 46.9%, to approximately $21.1 million and accounted for 98.5 % of total revenue for the fourth quarter of 2022, compared to approximately $39.7 million, or 88.0% of total revenue, for the same period of last year. The Company sold 51,306 tonnes of CMP at an ASP of $410/tonne in the fourth quarter of 2022, compared to 69,953 tonnes at an ASP of $567/tonne in the same period of last year.

Of the total CMP sales, revenue from regular CMP decreased by approximately $15.4 million, or 47.1%, to approximately $17.3 million, resulting from sales of 41,941 tonnes at an ASP of $412/tonne, during the fourth quarter of 2022, compared to revenue of approximately$32.7  million, resulting from sales of 57,410 tonnes at an ASP of $569/tonne, for the same period of last year. Revenue from light-weight CMP decreased by approximately $3.2 million, or 46.1%, to approximately $3.8 million, resulting from sales of 9,365 tonnes at an ASP of $402/tonne for the fourth quarter of 2022, compared to revenue of approximately $7.0 million, resulting from sales of 12,543 tonnes at an ASP of $558/tonne for the same period of last year.

Revenue from offset printing paper was $nil for the three months ended December 31, 2022, due to COVID-19, offset printing paper was suspended in 2022.  Revenue from offset printing paper was  approximately $3.0 million for the fourth quarter of 2021, with 3,911 tonnes sold at an ASP of $759/tonne.

Revenue from tissue paper products decreased by $2.0 million, or 88.9%, to approximately $0.3 million, resulting from sales of 234 tonnes at an ASP of $1,083/tonne, for the fourth quarter of 2022, compared to revenue of approximately$2.3million, resulting from sales of 2,292 tonnes at an ASP of $994/tonne for the same period of last year.

Revenue from face masks decreased by $89,508, or 61.2%, to approximately $56,774 for the fourth quarter ended December 31, 2022, from $146,282 for the same period of 2021. The Company sold 1,330 thousand pieces of face masks for the fourth quarter ended December 31, 2022, compared to 3,014 thousand pieces of face masks for the same period of 2021.

Gross Profit and Gross Margin

Total cost of sales decreased by $20.3 million, or 49.9%, to approximately $20.4 million for the fourth quarter of 2022 from approximately $40.7 million for the same period of last year. For paper products, overall cost of sales per tonne was $394 for the fourth quarter of 2022, compared to $533 for the same period of last year. The decrease in overall cost of sales was mainly due to the decrease in sales volume of CMP and offset printing paper and decrease of material costs of CMP in the fourth quarter of 2022.  Costs of sales per tonne for regular CMP, light-weight CMP, offset printing paper, and tissue paper products were $378, $361, $nil and $4,494, respectively, for the fourth quarter of 2022, compared to $514, $490, $596, and $1,132, respectively, for the same period of last year.

Total gross profit was approximately $1.0 million for the fourth quarter of 2022, compare to the gross profit of approximately$4.3 million for the same period of last year as a result of factors described above. Overall gross margin was 4.8% for the fourth quarter of 2022, compared to 9.6% for the same period of last year. Gross profit (loss) margins for regular CMP, light-weight CMP, offset printing paper, tissue paper products and face mask products were 8.3%, 10.3%, n/a, -315.2% and 27.5%, respectively, for the fourth quarter of 2022, compared to 9.6%, 12.2%, 21.5%, -13.9% and 25.2%, respectively, for the same period of last year.

Selling, General and Administrative Expenses

Selling, general and administrative expenses ("SG&A") decreased by $0.9million, or 36.4%, to approximately $1.5 million for the fourth quarter of 2022 from approximately$2.4 million for the same period of last year.

Income (Loss) from Operations

Loss from operations was approximately $0.5million for the fourth quarter of 2022, a decrease of $2.4 million, or 125.2%, from income from operations of approximately $2.0 million for the same period of last year. Operating loss margin was -2.3% for the fourth quarter of 2022, compared to operating margin of 4.3% for the same period of last year.

Net Income (Loss)

Net loss was approximately $11.9 million, or $1.19 loss per basic and diluted share for the fourth quarter of 2022, representing a decrease of $16.1 million, or 386.6%, from net income of approximately $4.2 million, or $0.45 earnings per basic and diluted share, for the same period of last year.

EBITDA

EBITDA was approximately $3.8 million for the fourth quarter of 2022, compared to approximately $8.7 million for the same period of last year.

Note 1: Non-GAAP Financial Measures

In addition to our U.S. GAAP results, this press release includes a discussion of EBITDA, a non-GAAP financial measure as defined by the Securities and Exchange Commission ("SEC"). The Company defines EBITDA as net income before interest, income taxes, depreciation and amortization. EBITDA is a key measure used by management to evaluate our results and make strategic decisions. Management believes this measure is useful to investors because it is an indicator of operational performance. Because not all companies use identical calculations, the Company's presentation of EBITDA may not be comparable to similarly titled measures of other companies, and should not be viewed as an alternative to measures of financial performance or changes in cash flows calculated in accordance with the U.S. GAAP.

Reconciliation of Net Income to EBITDA
(Amounts expressed in US$)
		For the Three Months Ended December 31,
($ millions)		2021			2022
Net income (loss)		4.16			-11.91
Add: Income tax		0.60			11.87
Net interest expense		0.28			0.24
Depreciation and amortization		3.62			3.57
EBITDA		8.66			3.77

 

Full Year Ended December 31, 2022 Financial Results
		For the Twelve Months Ended December 31,
($ millions)		2021		2022		% Change
Revenues		160.88		100.35		-37.62 %
Regular Corrugating Medium Paper ("CMP")*		111.08		82.30		-25.91 %
Light-Weight CMP**		23.43		16.43		-29.89 %
Offset Printing Paper		17.06		0		-100 %
Tissue Paper Products		8.77		1.36		-84.53 %
Face Masks		0.54		0.26		-52.1 %
Gross profit		11.02		4.75		-56.9 %
Gross profit (loss) margin		6.9 %		4.7 %		-2.2 pp****
Regular Corrugating Medium Paper ("CMP")*		6.3 %		7.4 %		1.1 pp****
Light-Weight CMP**		8.7 %		9.4 %		0.7 pp****
Offset Printing Paper		18.2 %		-		-
Tissue Paper Products***		-14.3 %		-216.3 %		-202.1 pp****
Face Masks		19.2 %		26.1 %		6.9 pp****
Operating income (loss)		1.46		-5.30		-463.5 %
Net income		0.91		-16.57		-1930.0 %
EBITDA		22.94		10.96		-52.2 %
Basic and Diluted earnings (loss) per share		0.10		-1.66		-1,760.0 %
* Products from PM6
** Products from PM1
*** Products from PM8 and PM9
**** pp represents percentage points

Revenue

For the year ended December 31, 2022, total revenue decreased by $60.5 million, or 37.6%, to approximately $100.4 million from approximately$160.9 million for 2021. The decrease in total revenue was mainly due to the decrease in sales volume of CMP, offset printing paper and tissue paper and the decrease in ASP of CMP.

The following table summarizes revenue, volume and ASP by product for the years ended December 31, 2021 and 2022, respectively:

	For the Twelve Months Ended December 31,
	2021						2022
	Revenue ($'000)		Volume  (tonne)		ASP ($/tonne)		Revenue ($'000)		Volume  (tonne)		ASP ($/tonne)
Regular CMP	111,079		213,490		520		82,297		180,977		455
Light-Weight CMP	23,432		46,201		507		16,428		37,354		440
Offset Printing Paper	17,063		24,513		696		-		-		-
Tissue Paper Products	8,770		8,255		1,062		1,356		1,273		1,065
Total	160,344		292,459		548		100,082		219,604		456
	Revenue ($'000)		Volume (thousand pieces)		ASP ($/thousand pieces)		Revenue ($'000)		Volume ($/thousand pieces)		ASP ($/thousand pieces)
Face Masks	538		12,664		42		258		5,625		46

Revenue from CMP, including both regular CMP and light-Weight CMP decreased by $35.8 million, or 26.6%, to approximately $98.7 million, and accounted for 98.4% of total revenue for the year ended December 31, 2022, compared to approximately$134.5 million, or 83.6% of total revenue for 2021. The Company sold 218,331tonnes of CMP at an ASP of $452/tonne in the year ended December 31, 2022, compared to 259,691tonnes at an ASP of $518/tonne in 2021.

Of the total CMP sales, revenue from regular CMP decreased by $28.8 million, or 25.9%, to approximately $82.3 million, resulting from sales of 180,977 tonnes at an ASP of $455/tonne during the year ended December 31, 2022, compared to revenue of approximately$111.1 million, resulting from sales of 213,490 tonnes at an ASP of $520/tonne for 2021. Revenue from light-weight CMP decreased by $7.0 million, or 29.9%, to approximately$16.4 million, resulting from sales of 37,354 tonnes at an ASP of $440/tonne for the year ended December 31, 2022, compared to revenue of approximately$23.4million, resulting from sales of 46,201tonnes at an ASP of $507/tonne for 2021.

Revenue from offset printing paper was $nil for the year ended December 31, 2022 compared to the revenue of $17.1 for the year ended December 31, 2021. Due to COVID-19, our paper production was restricted and production of offset printing paper was suspended in 2022.

Revenue from tissue paper products decreased by $7.4 million, or 84.5%, to approximately $1.4 million, resulting from sales of 1,273 tonnes at an ASP of $1,065/tonne, for the year ended December 31, 2022, compared to revenue of approximately $8.8 million, resulting from sales of 8,255 tonnes at an ASP of $1,062/tonne for 2021.

Revenue from face masks decreased by $0.3 million, or 52.1%, to approximately $0.3 million for the year ended December 31, 2022, from approximately $0.5 million for 2021. The Company sold 5,625 thousand pieces of face masks for the year ended December 31, 2022, compared to 12,664 thousand pieces of face masks for 2021.

Gross Profit and Gross Margin

Total cost of sales decreased by $54.2 million, or 36.1%, to approximately $95.6 million for the year ended December 31, 2022 from approximately $149.9 million for 2021. The decrease in overall cost of sales was mainly due to the decreased sales volume of CMP and offset printing paper and decreased material costs of CMP in the year ended December 31, 2022.  Costs of sales per tonne for regular CMP, light-weight CMP, offset printing paper, tissue paper products were, $421, $398, $nil, and $3,370, respectively, for the year ended December 31, 2022 compared to $487, $463, $570, and $1,214, respectively, for 2021.

Total gross profit decreased by $6.3 million, or 56.9%, to approximately $4.8 million for the year ended December 31, 2022 from approximately $11.0 million for 2021. Overall gross margin decreased by 2.2 percentage points to 4.7% for the year ended December 31, 2022 from 6.9% for 2021. Gross margins for regular CMP, light-weight CMP, offset printing paper, tissue paper products and face mask products were 7.4%, 9.4%, nil, -216.3% and 26.1%, respectively, for the year ended December 31, 2022, compared to 6.3%, 8.7%, 18.2%, 14.3% and 19.2%, respectively, for 2021.

Selling, General and Administrative Expenses

SG&A expenses increased by $0.5 million, or 5.24%, to approximately $10.1 million for the year ended December 31, 2022 from approximately $9.6 million for 2021. As a percentage of total revenue, SG&A expenses was 10.0% for the year ended December 31, 2022, compared to 5.9% for 2021.

Income (Loss) from Operations

Loss from operations decreased by $6.8 million, or 463.5% to approximately $5.3 million for the year ended December 31, 2022 from income from operations of approximately $1.5 million for 2021. Operating loss margin was -5.3% for the year ended December 31, 2022, compared to operating margin of 0.9% for 2021.

Net Income (Loss)

Net loss decreased by $17.5 million, or 1930.0%, to approximately $16.6 million, or losses per basic and diluted share of $1.66, for the year ended December 31, 2022, compared to net income of approximately $0.9 million, or  earnings per basic and diluted share of $0.10 for 2021.

EBITDA

EBITDA decreased by $12.0 million, or 52.2%, to approximately $11.0 million for the year ended December 31, 2022 from approximately $22.9 million for 2021.

Note 1: Non-GAAP Financial Measures

In addition to our U.S. GAAP results, this press release includes a discussion of EBITDA, a non-GAAP financial measure as defined by the Securities and Exchange Commission ("SEC"). The Company defines EBITDA as net income before interest, income taxes, depreciation and amortization. EBITDA is a key measure used by management to evaluate our results and make strategic decisions. Management believes this measure is useful to investors because it is an indicator of operational performance. Because not all companies use identical calculations, the Company's presentation of EBITDA may not be comparable to similarly titled measures of other companies, and should not be viewed as an alternative to measures of financial performance or changes in cash flows calculated in accordance with the U.S. GAAP.

Reconciliation of Net Income to EBITDA
(Amounts expressed in US$)
		For the Twelve Months Ended December 31,
($ millions)		2021			2022
Net income (loss)		0.91			-16.57
Add: Income tax		5.55			11.71
Net interest expense		1.12			1.03
Depreciation and amortization		15.36			14.79
EBITDA		22.94			10.96

Cash, Liquidity and Financial Position

As of December 31, 2022, the Company had cash and bank balances, short-term debt (including bank loans, current portion of long-term loans from credit union and related party loans), and long-term debt (including loan from credit union) of approximately $9.5 million, $11.2 million and $4.2 million, respectively, compared to approximately $11.2 million, $13.5 million and $3.0 million, respectively, at the end of 2021.

Net accounts receivable was approximately $0.9 million as of December 31, 2022, compared to approximately $4.9 million as of December 31, 2021. Net inventory was approximately $2.9 million as of December 31, 2022, compared to approximately $5.8 million at the end of 2021. As of December 31, 2022, the Company had current assets of approximately $47.2 million and current liabilities of approximately $17.6 million, resulting in a working capital of approximately $29.6 million. This was compared to current assets of approximately $55.5 million and current liabilities of approximately $20.4 million, resulting in a working capital of approximately $35.1 million at the end of 2021.

Net Cash provided by operating activities was approximately $10.7 million for the year ended December 31, 2022, compared to net cash used in operating activities of approximately $2.4 million for 2021. Net cash used in investing activities was approximately $10.9 million for the year ended December 31, 2022, compared to approximately $25.1 million for 2021. Net cash used in financing activities was approximately $0.9 million for the year ended December 31, 2022, compared to net cash provided by financing activities of approximately $34.2 million for 2021.

About IT Tech Packaging, Inc.

Founded in 1996, IT Tech Packaging, Inc. is a leading manufacturer and distributor of diversified paper products and single-use face masks 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. For more information, please visit: https://www.itpackaging.cn/.

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.

 

IT TECH PACKAGING, INC.
CONSOLIDATED BALANCE SHEETS
AS OF DECEMBER 31, 2022 AND 2021
		December 31,				December 31,
		2022				2021
ASSETS
Current Assets
Cash and bank balances		$	9,524,868			$	11,201,612
Accounts receivable (net of allowance for doubtful accounts of $881,878 and $69,053 as of December 31, 2022 and December 31, 2021, respectively)			-				4,868,934
Inventories			2,872,622				5,844,895
Prepayments and other current assets			27,207,127				25,796,640
Due from related parties			7,561,858				7,804,068
Total current assets			47,166,475				55,516,149
Prepayment on property, plant and equipment			1,031,502				43,446,210
Operating lease right-of-use assets, net			672,722				-
Finance lease right-of-use assets, net			1,939,970				2,286,459
Property, plant, and equipment, net			151,569,898				126,587,428
Value-added tax recoverable			2,066,666				2,430,277
Deferred tax asset non-current			-				11,268,679
Total Assets		$	204,447,233			$	241,535,202
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Short-term bank loans		$	5,598,311			$	5,958,561
Current portion of long-term loans			4,835,884				6,838,465
Lease liability			224,497				210,161
Accounts payable			5,025				10,255
Advance from customers			-				39,694
Due to related parties			727,462				727,433
Accrued payroll and employee benefits			165,986				291,206
Other payables and accrued liabilities			5,665,558				5,250,539
Income taxes payable			417,906				1,108,038
Total current liabilities			17,640,629				20,434,352
Long-term loans			4,204,118				2,980,065
Deferred gain on sale-leaseback			52,314				155,110
Lease liability - non-current			579,997				152,233
Derivative liability			646,283				2,063,534
Total liabilities (including amounts of the consolidated VIE without recourse to the Company of $16,784,878 and $17,924,475 as of December 31, 2022 and 2021, respectively)			23,123,341				25,785,294
Commitments and Contingencies
Stockholders' Equity
Common stock, 50,000,000 shares authorized, $0.001 par value per share, 10,065,920 and 9,915,920 shares issued and outstanding as of December 31, 2022 and December, 31, 2021, respectively.			10,066				9,916
Additional paid-in capital			89,172,771				89,016,921
Statutory earnings reserve			6,080,574				6,080,574
Accumulated other comprehensive (loss) income			(7,514,540)				10,496,168
Retained earnings			93,575,021				110,146,329
Total stockholders' equity			181,323,892				215,749,908
Total Liabilities and Stockholders' Equity		$	204,447,233			$	241,535,202

 

IT TECH PACKAGING, INC.
CONSOLIDATED STATEMENTS OF INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS)
FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021
		Year Ended
		December 31,
		2022				2021
Revenues		$	100,352,434			$	160,881,720
Cost of sales			(95,598,238)				(149,864,161)
Gross Profit			4,754,196				11,017,559
Selling, general and administrative expenses			(10,058,723)				(9,558,190)
(Loss) Income from Operations			(5,304,527)				1,459,369
Other Income (Expense):
Interest income			24,264				38,766
Subsidy income			-				198,530
Interest expense			(1,027,951)				(1,124,702)
Gain on acquisition			30,994				-
Gain (Loss) on derivative liability			1,417,251				5,880,526
(Loss) Income before Income Taxes			(4,859,969)				6,452,489
Provision for Income Taxes			(11,711,339)				(5,546,954)
Net (Loss) Income			(16,571,308)				905,535
Other Comprehensive (Loss) Income
Foreign currency translation adjustment			(18,010,708)				4,755,448
Total Comprehensive (Loss) Income		$	(34,582,016)			$	5,660,983
(Losses) Earnings Per Share:
Basic and Diluted (Losses) Earnings per Share		$	(1.66)			$	0.1	0
Outstanding – Basic and Diluted			9,972,788				9,133,440

 

IT TECH PACKAGING, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021
		Year Ended
		December 31,
		2022				2021
Cash Flows from Operating Activities:
Net income		$	(16,571,308)			$	905,535
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			14,788,036				15,358,452
(Gain) Loss on derivative liability			(1,417,251)				(5,880,526)
Gain on acquisition			(30,992)				-
(Recovery from) for bad debts			843,779				33,480
Share-based compensation and expenses			156,000				-
Deferred tax			10,261,104				2,730,050
Changes in operating assets and liabilities:
Accounts receivable			3,750,196				(2,430,495)
Prepayments and other current assets			(3,976,010)				(8,350,716)
Inventories			2,554,072				(4,531,263)
Accounts payable			(4,496)				(589,371)
Advance from customers			(37,452)				(44,366)
Related parties			444,291				(785,097)
Accrued payroll and employee benefits			(103,683)				60,334
Other payables and accrued liabilities			677,840				254,966
Income taxes payable			(614,738)				832,946
Net Cash (Used in) Provided by Operating Activities			10,719,388				(2,436,071)
Cash Flows from Investing Activities:
Purchases of property, plant and equipment			(4,534,092)				(25,071,372)
Proceeds from sale of property, plant and equipment			-				-
Acquisition of land			(6,364,439)				-
Net Cash Used in Investing Activities			(10,898,531)				(25,071,372)
Cash Flows from Financing Activities:
Proceeds from issuance of shares and warrants, net			-				41,837,553
Proceeds from short term bank loans			6,214,020				5,892,298
Proceeds from long term loans			59,195				-
Repayment of bank loans			(6,071,952)				(6,512,703)
Payment of capital lease obligation			(206,114)				(185,050)
Loan to a related party (net)			(874,745)				(6,838,274)
Net Cash Provided by (Used in) Financing Activities			(879,596)				34,193,824
Effect of Exchange Rate Changes on Cash and Cash Equivalents			(618,005)				372,794
Net (Decrease) Increase in Cash and Cash Equivalents			(1,676,744)				7,059,175
Cash, Cash Equivalents - Beginning of Year			11,201,612				4,142,437
Cash, Cash Equivalents - End of Year		$	9,524,868			$	11,201,612
Supplemental Disclosure of Cash Flow Information:
Cash paid for interest, net of capitalized interest cost		$	320,568			$	577,194
Cash paid for income taxes		$	2,049,911			$	1,970,984

 

View original content:https://www.prnewswire.com/news-releases/it-tech-packaging-inc-announces-fourth-quarter-and-fiscal-year-2022-financial-results-301780565.html

SOURCE IT Tech Packaging, Inc.

FAQ

What were IT Tech Packaging's Q4 2022 earnings results?

IT Tech Packaging reported a revenue decline of 52.6% in Q4 2022, totaling approximately $21.37 million, with a net loss of $11.91 million.

How did IT Tech Packaging perform in fiscal year 2022?

For fiscal year 2022, IT Tech Packaging's revenue decreased by 37.6% to approximately $100.35 million, with a net loss of $16.57 million.

What is the future outlook for IT Tech Packaging (ITP)?

Management expects a gradual recovery in market demand as the pandemic stabilizes in China.

What was the gross profit margin for IT Tech Packaging in 2022?

The gross profit margin for 2022 was approximately 4.7%, down from 6.9% in 2021.