IT Tech Packaging, Inc. Announces Second Quarter 2024 Unaudited Financial Results
IT Tech Packaging (NYSE American: ITP) reported its Q2 2024 unaudited financial results. Revenue decreased 12.56% to $26.25 million, primarily due to production suspension of offset printing paper and tissue paper products. Gross profit increased 176.75% to $3.27 million, with gross margin improving to 12.44%. The company reported operating income of $0.55 million, compared to a loss of $0.52 million in Q2 2023. Net loss narrowed to $0.08 million ($0.01 per share) from $1.25 million ($0.12 per share) last year. EBITDA rose 38.87% to $3.93 million. CMP products accounted for 99.86% of total revenue. The company's cash position improved to $5.14 million as of June 30, 2024, up from $3.92 million at the end of 2023.
IT Tech Packaging (NYSE American: ITP) ha riportato i risultati finanziari non verificati del secondo trimestre 2024. I ricavi sono diminuiti del 12,56% a 26,25 milioni di dollari, principalmente a causa della sospensione della produzione di carta da stampa offset e prodotti in carta tissue. Il profitto lordo è aumentato del 176,75% a 3,27 milioni di dollari, con un margine lordo che migliora al 12,44%. L'azienda ha segnalato
IT Tech Packaging (NYSE American: ITP) reportó sus resultados financieros no auditados del segundo trimestre de 2024. Los ingresos disminuyeron un 12,56% a 26,25 millones de dólares, principalmente debido a la suspensión de la producción de papel de impresión offset y productos de papel tissue. El beneficio bruto aumentó un 176,75% a 3,27 millones de dólares, con un margen bruto que mejoró al 12,44%. La compañía reportó un ingreso operativo de 0,55 millones de dólares, comparado con una pérdida de 0,52 millones de dólares en el segundo trimestre de 2023. La pérdida neta se redujo a 0,08 millones de dólares (0,01 dólares por acción) desde 1,25 millones de dólares (0,12 dólares por acción) del año pasado. El EBITDA aumentó un 38,87% a 3,93 millones de dólares. Los productos CMP representaron el 99,86% de los ingresos totales. La posición de efectivo de la compañía mejoró a 5,14 millones de dólares al 30 de junio de 2024, en comparación con 3,92 millones de dólares a finales de 2023.
IT Tech Packaging (NYSE American: ITP)는 2024년 2분기 비감사 재무 결과를 발표했습니다. 수익은 12.56% 감소하여 2625만 달러에 도달했습니다, 주로 오프셋 인쇄용지 및 티슈 제품의 생산 중단으로 인한 것입니다. 총 이익은 176.75% 증가하여 327만 달러에 달했습니다, 총 이익률은 12.44%로 개선되었습니다. 회사는 운영 수익 55만 달러를 보고했으며, 이는 2023년 2분기 52만 달러의 손실과 비교됩니다. 순 손실은 8만 달러로 축소되었습니다 (주당 0.01 달러), 작년 125만 달러 (주당 0.12 달러)에서 감소하였습니다. EBITDA는 38.87% 증가하여 393만 달러가 되었습니다. CMP 제품은 총 수익의 99.86%를 차지했습니다. 회사의 현금 보유량은 2024년 6월 30일 기준 514만 달러로 개선되었으며, 이는 2023년 말의 392만 달러에서 증가한 수치입니다.
IT Tech Packaging (NYSE American: ITP) a publié ses résultats financiers non audités pour le deuxième trimestre 2024. Les revenus ont diminué de 12,56 % pour atteindre 26,25 millions de dollars, principalement en raison de la suspension de la production de papier d'impression offset et de produits en papier tissu. Le bénéfice brut a augmenté de 176,75 % pour atteindre 3,27 millions de dollars, avec une marge brute améliorée à 12,44 %. L'entreprise a déclaré un résultat opérationnel de 0,55 million de dollars, contre une perte de 0,52 million de dollars au deuxième trimestre 2023. La perte nette a été réduite à 0,08 million de dollars (0,01 dollar par action) contre 1,25 million de dollars (0,12 dollar par action) l'année dernière. L'EBITDA a augmenté de 38,87 % pour atteindre 3,93 millions de dollars. Les produits CMP ont représenté 99,86 % des revenus totaux. La position de trésorerie de l'entreprise s'est améliorée à 5,14 millions de dollars au 30 juin 2024, contre 3,92 millions de dollars à la fin de 2023.
IT Tech Packaging (NYSE American: ITP) hat seine ungeprüften Finanzzahlen für das zweite Quartal 2024 veröffentlicht. Der Umsatz sank um 12,56% auf 26,25 Millionen US-Dollar, hauptsächlich aufgrund der Betriebsunterbrechung bei Offsetdruckpapier und Tissueprodukten. Der Bruttogewinn stieg um 176,75% auf 3,27 Millionen US-Dollar, während die Bruttomarge auf 12,44% verbesserte. Das Unternehmen meldete einen operativen Gewinn von 0,55 Millionen US-Dollar, im Vergleich zu einem Verlust von 0,52 Millionen US-Dollar im zweiten Quartal 2023. Der Nettoverlust verringerte sich auf 0,08 Millionen US-Dollar (0,01 US-Dollar pro Aktie) von 1,25 Millionen US-Dollar (0,12 US-Dollar pro Aktie) im Vorjahr. EBITDA stieg um 38,87% auf 3,93 Millionen US-Dollar. CMP-Produkte machten 99,86% des Gesamtumsatzes aus. Die Liquiditätsposition des Unternehmens verbesserte sich zum 30. Juni 2024 auf 5,14 Millionen US-Dollar, anstieg von 3,92 Millionen US-Dollar Ende 2023.
- Gross profit increased 176.75% to $3.27 million
- Gross margin improved from 3.93% to 12.44%
- Operating income of $0.55 million, compared to a loss in Q2 2023
- Net loss narrowed significantly from $1.25 million to $0.08 million
- EBITDA increased 38.87% to $3.93 million
- Cash position improved from $3.92 million to $5.14 million
- Revenue decreased 12.56% to $26.25 million
- Production suspension of offset printing paper and tissue paper products
- Light-Weight CMP revenue decreased by 6.93%
- Selling, general and administrative expenses increased by 105.35%
Insights
IT Tech Packaging's Q2 2024 results show mixed signals. Revenue decreased by 12.56% to
The company's focus on Corrugating Medium Paper (CMP) seems to be paying off, as it now accounts for
The EBITDA improvement of
Overall, while the company has shown improvement in profitability metrics, the declining revenue and continued net loss position warrant caution. The company's ability to sustain its margin improvements and return to revenue growth will be important for its future performance.
The paper industry in North China appears to be facing challenges, as evidenced by IT Tech Packaging's results. The suspension of offset printing and tissue paper production suggests potential overcapacity or demand issues in these segments. However, the company's focus on CMP products, which now represent nearly all of its revenue, indicates a strategic shift to more profitable areas.
The decrease in ASP across all product lines (CMP from
The absence of face mask sales in Q2 2024 compared to the previous year reflects the evolving pandemic situation and its impact on related product demand. This highlights the importance of core business segments for sustainable growth.
Looking ahead, the paper industry in this region may continue to face headwinds, but companies that can adapt their product mix and improve operational efficiency, as IT Tech Packaging seems to be doing, may be better positioned to navigate these challenges.
BAODING,
Second Quarter 2024 Unaudited Financial Results | ||||||
For the Three Months Ended June 30, | ||||||
($ millions) | 2024 | 2023 | % Change | |||
Revenues | 26.25 | 30.02 | -12.56 % | |||
Regular Corrugating Medium Paper ("CMP")* | 21.98 | 21.93 | 0.24 % | |||
Light-Weight CMP** | 4.23 | 4.54 | -6.93 % | |||
Offset Printing Paper | - | 3.16 | n/a | |||
Tissue Paper Products | - | 0.34 | n/a | |||
Face Masks | - | 0.04 | n/a | |||
Gross profit (loss) | 3.27 | 1.18 | 176.75 % | |||
Gross profit margin | 12.44 % | 3.93 % | 8.51 pp**** | |||
Regular Corrugating Medium Paper ("CMP")* | 12.22 % | 6.81 % | 5.41 pp**** | |||
Light-Weight CMP** | 12.82 % | 7.14 % | 5.68 pp**** | |||
Offset Printing Paper | - | 2.42 % | n/a | |||
Tissue Paper Products*** | - | -206.06 % | n/a | |||
Face Masks | - | -8.06 % | n/a | |||
Operating income (loss) | 0.55 | -0.52 | 205.60 % | |||
Net income (loss) | -0.08 | -1.25 | 93.80 % | |||
EBITDA | 3.93 | 2.83 | 38.87 % | |||
Basic and Diluted earnings (loss) per share | -0.01 | -0.12 | -93.33 % | |||
* Products from PM6 | ||||||
** Products from PM1 | ||||||
*** Products from PM8 and PM9 | ||||||
**** pp represents percentage points | ||||||
- Revenue decreased by
12.56% to approximately$26.25 million - Gross profit was approximately
$3.27 million $1.18 12.44% . - Income from operations was approximately
$0.55 million $0.52 - Net loss was approximately
$0.08 million $0.01 $1.25 million $0.12 - Earnings before interest, taxes, depreciation and amortization ("EBITDA") was approximately
$3.93 million $2.83 million
Revenue
For the second quarter of 2024, total revenue decreased by
The following table summarizes revenue, volume and ASP by product for the second quarter of 2024 and 2023, respectively:
For the Three Months Ended June 30, | ||||||||||||
2024 | 2023 | |||||||||||
Revenue | Volume | ASP | Revenue | Volume | ASP | |||||||
Regular CMP | 21,984 | 62,813 | 350 | 21,931 | 60.063 | 365 | ||||||
Light-Weight CMP | 4,229 | 12,552 | 337 | 4,544 | 12,877 | 353 | ||||||
Offset Printing Paper | - | - | - | 3,156 | 5,403 | 584 | ||||||
Tissue Paper Products | - | - | - | 344 | 293 | 1,175 | ||||||
Total | 26,213 | 75,365 | 348 | 29,976 | 78,636 | 381 | ||||||
Revenue | Volume | ASP | Revenue | Volume | ASP | |||||||
Face Masks | - | - | - | 44 | 1,411 | 31 | ||||||
Revenue from CMP, including both regular CMP and light-Weight CMP, decreased by
Of the total CMP sales, revenue from regular CMP increased by
Revenue from offset printing paper was $nil and
Revenue from tissue paper products was $nil and
Revenue generated from selling face mask were $nil and
Gross Profit (Loss) and Gross Margin
Total cost of sales decreased by
Total gross profit was approximately
Selling, General and Administrative Expenses
Selling, general and administrative expenses ("SG&A") increased by
Income (Loss) from Operations
Income from operations was approximately
Net Loss
Net loss was approximately
EBITDA
EBITDA was approximately
Note 1: Non-GAAP Financial Measures
In addition to our
Reconciliation of Net Income to EBITDA | |||||
For the Three Months Ended June 30, | |||||
($ millions) | 2024 | 2023 | |||
Net income (loss) | -0.08 | -1.25 | |||
Add: Income tax | 0.42 | 0.35 | |||
Net interest expense | 0.21 | 0.27 | |||
Depreciation and amortization | 3.38 | 3.46 | |||
EBITDA | 3.93 | 2.83 | |||
First Half of 2024 Unaudited Financial Results | ||||||
For the Six Months Ended June 30, | ||||||
($ millions) | 2024 | 2023 | % Change | |||
Revenues | 33.11 | 49.81 | -33.52 % | |||
Regular Corrugating Medium Paper ("CMP")* | 27.73 | 38.40 | -27.77 % | |||
Light-Weight CMP** | 5.31 | 7.60 | -30.23 % | |||
Offset Printing Paper | - | 3.16 | n/a | |||
Tissue Paper Products | - | 0.57 | n/a | |||
Face Masks | - | 0.08 | n/a | |||
Gross profit (loss) | 3.66 | 0.90 | 305.87 % | |||
Gross profit (loss) margin | 11.07 % | 1.81 % | 9.26pp**** | |||
Regular Corrugating Medium Paper ("CMP")* | 10.86 % | 4.71 % | 6.15 pp**** | |||
Light-Weight CMP** | 10.90 | 5.86 % | 5.04 pp**** | |||
Offset Printing Paper |
- | 2.42 % | n/a | |||
Tissue Paper Products*** |
- | -249.58 % | n/a | |||
Face Masks |
- | -8.02 % | n/a | |||
Operating income (loss) | -2.95 | -3.29 | -10.24 % | |||
Net income (loss) | -3.82 | -3.99 | -4.07 % | |||
EBITDA | 3.91 | 4.03 | -2.98 | |||
Basic and Diluted loss per share | -0.38 | -0.40 | -5.00 % | |||
* Products from PM6 | ||||||
** Products from PM1 | ||||||
*** Products from PM8 and PM9 | ||||||
**** pp represents percentage points | ||||||
Revenue
For the first half of 2024, total revenue decreased by
The following table summarizes revenue, volume and ASP by product for the first half of 2024 and 2023, respectively:
For the Six Months Ended June 30, | |||||||||||
2024 | 2023 | ||||||||||
Revenue | Volume | ASP | Revenue | Volume | ASP | ||||||
Regular CMP | 27,734 | 78,452 | 354 | 38,399 | 101,726 | 377 | |||||
Light-Weight CMP | 5,305 | 15,582 | 340 | 7,604 | 20,896 | 364 | |||||
Offset Printing Paper | - | - | - | 3,156 | 5,403 | 584 | |||||
Tissue Paper Products | - | - | - | 567 | 484 | 1,172 | |||||
Total | 33,040 | 94,034 | 351 | 49,726 | 128,509 | 387 | |||||
Revenue | Volume | ASP | Revenue | Volume | ASP | ||||||
Face Masks | - | - | - | 79 | 2,516 | 32 | |||||
Revenue from CMP, including both regular CMP and light-Weight CMP, decreased by
Of the total CMP sales, revenue from regular CMP decreased by
Revenue from offset printing paper was $nil for the first half of 2024.
Revenue from tissue paper products was $nil for the first half of 2024,from approximately
Revenue from face masks was $nil for the first half of 2024, from
Gross Profit and Gross Margin
Total cost of sales decreased by
Total gross profit was approximately
Selling, General and Administrative Expenses
Selling, general and administrative expenses ("SG&A") increased by
Income (Loss) from Operations
Loss from operations was approximately
Net Income (Loss)
Net loss was approximately
EBITDA
EBITDA was approximately
Note 1: Non-GAAP Financial Measures
In addition to our
Reconciliation of Net Income to EBITDA | |||||
For the Six Months Ended June 30, | |||||
($ millions) | 2024 | 2023 | |||
Net income (loss) | -3.82 | -3.99 | |||
Add: Income tax | 0.45 | 0.35 | |||
Net interest expense | 0.42 | 0.52 | |||
Depreciation and amortization | 6.86 | 7.15 | |||
EBITDA | 3.91 | 4.03 | |||
Cash, Liquidity and Financial Position
As of June 30, 2024, 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 related party loans) of approximately
Net accounts receivable was approximately
Net cash provided by operating activities was approximately
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
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. | |||||||
June 30, | December 31, | ||||||
2024 | 2023 | ||||||
ASSETS | |||||||
Current Assets | |||||||
Cash and bank balances | $ | 5,144,414 | $ | 3,918,938 | |||
Restricted cash | 899,508 | 472,983 | |||||
Accounts receivable (net of allowance for doubtful accounts of | 2,638,219 | 575,526 | |||||
Inventories | 5,282,420 | 3,555,235 | |||||
Prepayments and other current assets | 18,246,164 | 18,981,290 | |||||
Due from related parties | 1,219,553 | 853,929 | |||||
Total current assets | 33,430,278 | 28,357,901 | |||||
Operating lease right-of-use assets, net | 476,771 | 528,648 | |||||
Property, plant, and equipment, net | 155,624,752 | 163,974,022 | |||||
Value-added tax recoverable | 1,830,425 | 1,883,078 | |||||
Deferred tax asset non-current | - | - | |||||
Total Assets | $ | 191,362,226 | $ | 194,743,649 | |||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
Current Liabilities | |||||||
Short-term bank loans | $ | 841,893 | $ | 423,567 | |||
Current portion of long-term loans | 6,817,927 | 6,874,497 | |||||
Lease liability | 103,568 | 100,484 | |||||
Accounts payable | - | 4,991 | |||||
Advance from customers | 73,386 | 136,167 | |||||
Notes payable | 429,451 | - | |||||
Due to related parties | 731,486 | 728,869 | |||||
Accrued payroll and employee benefits | 369,565 | 237,842 | |||||
Other payables and accrued liabilities | 13,135,687 | 12,912,517 | |||||
Income taxes payable | 415,635 | - | |||||
Total current liabilities | 22,918,598 | 21,418,934 | |||||
Long-term loans | 4,490,094 | 4,503,932 | |||||
Lease liability - non-current | 498,718 | 483,866 | |||||
Derivative liability | 5 | 54 | |||||
Total liabilities (including amounts of the consolidated VIE | 27,907,415 | 26,406,786 | |||||
Commitments and Contingencies | |||||||
Stockholders' Equity | |||||||
Common stock, 50,000,000 shares authorized, | 10,066 | 10,066 | |||||
Additional paid-in capital | 89,172,771 | 89,172,771 | |||||
Statutory earnings reserve | 6,080,574 | 6,080,574 | |||||
Accumulated other comprehensive loss | (11,613,303) | (10,555,534) | |||||
Retained earnings | 79,804,703 | 83,628,986 | |||||
Total stockholders' equity | 163,454,811 | 168,336,863 | |||||
Total Liabilities and Stockholders' Equity | $ | 191,362,226 | $ | 194,743,649 | |||
IT TECH PACKAGING, INC. | ||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||
June 30, | June 30, | |||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||
Revenues | $ | 26,249,788 | $ | 30,019,914 | $ | 33,113,629 | $ | 49,810,791 | ||||||
Cost of sales | (22,984,488) | (28,840,056) | (29,449,216) | (48,907,932) | ||||||||||
Gross Profit | 3,265,300 | 1,179,858 | 3,664,413 | 902,859 | ||||||||||
Selling, general and administrative expenses | (2,717,548) | (1,323,405) | (6,618,331) | (3,818,767) | ||||||||||
Loss on impairment of assets | - | (375,136) | - | (375,136) | ||||||||||
Income (Loss) from Operations | 547,752 | (518,683) | (2,953,918) | (3,291,044) | ||||||||||
Other Income (Expense): | ||||||||||||||
Interest income | 2,807 | 53,637 | 4,990 | 189,905 | ||||||||||
Interest expense | (211,551) | (270,681) | (421,841) | (519,850) | ||||||||||
Gain (Loss) on derivative liability | 15 | (166,506) | 49 | (14,409) | ||||||||||
Income (Loss) before Income Taxes | 339,023 | (902,233) | (3,370,720) | (3,635,398) | ||||||||||
Provision for Income Taxes | (416,770) | (351,260) | (453,563) | (351,260) | ||||||||||
Net Loss | (77,747) | (1,253,493) | (3,824,283) | (3,986,658) | ||||||||||
Other Comprehensive Loss | ||||||||||||||
Foreign currency translation adjustment | (756,150) | (9,063,695) | (1,057,769) | (6,560,939) | ||||||||||
Total Comprehensive Loss | $ | (833,897) | $ | (10,317,188) | $ | (4,882,052) | $ | (10,547,597) | ||||||
Losses Per Share: | ||||||||||||||
Basic and Diluted Losses per Share | $ | (0.008) | $ | (0.12) | $ | (0.38) | $ | (0.40) | ||||||
Outstanding – Basic and Diluted | 10,065,920 | 10,065,920 | 10,065,920 | 10,065,920 | ||||||||||
IT TECH PACKAGING, INC. | ||||||
Six Months Ended | ||||||
June 30, | ||||||
2024 | 2023 | |||||
Cash Flows from Operating Activities: | ||||||
Net income | $ | (3,824,283) | $ | (3,986,658) | ||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||
Depreciation and amortization | 6,862,883 | 7,150,057 | ||||
(Gain) Loss on derivative liability | (49) | 14,409 | ||||
Loss from disposal and impairment of property, plant and equipment | - | 501,934 | ||||
(Recovery from) Allowance for bad debts | 49,462 | (830,847) | ||||
Allowances for inventories, net | (2,948) | - | ||||
Deferred tax | - | - | ||||
Changes in operating assets and liabilities: | ||||||
Accounts receivable | (2,121,357) | (1,674,665) | ||||
Prepayments and other current assets | 660,470 | 7,634,922 | ||||
Inventories | (1,751,011) | (3,940,417) | ||||
Accounts payable | (4,974) | 127,215 | ||||
Advance from customers | (62,107) | 10,567 | ||||
Notes payable | 430,624 | - | ||||
Related parties | (369,287) | (90,617) | ||||
Accrued payroll and employee benefits | 133,504 | 154,398 | ||||
Other payables and accrued liabilities | 928,640 | 743,936 | ||||
Income taxes payable | 416,770 | (67,515) | ||||
Net Cash Provided by Operating Activities | 1,346,337 | 5,746,719 | ||||
Cash Flows from Investing Activities: | ||||||
Purchases of property, plant and equipment | (62,640) | (5,565,713) | ||||
Proceeds from sale of property, plant and equipment | - | - | ||||
Acquisition of land | - | - | ||||
Net Cash Used in Investing Activities | (62,640) | (5,565,713) | ||||
Cash Flows from Financing Activities: | ||||||
Proceeds from issuance of shares and warrants, net | - | - | ||||
Proceeds from short term bank loans | 844,191 | 860,919 | ||||
Proceeds from long term loans | - | 2,582,756 | ||||
Repayment of bank loans | (422,095) | (507,942) | ||||
Payment of capital lease obligation | - | (112,136) | ||||
Loan to a related party (net) | - | - | ||||
Net Cash Provided by Financing Activities | 422,096 | 2,823,597 | ||||
Effect of Exchange Rate Changes on Cash and Cash Equivalents | (53,792) | (548,712) | ||||
Net Increase in Cash and Cash Equivalents | 1,652,001 | 2,455,891 | ||||
Cash, Cash Equivalents and Restricted Cash - Beginning of Period | 4,391,921 | 9,524,868 | ||||
Cash, Cash Equivalents and Restricted Cash - End of Period | $ | 6,043,922 | $ | 11,980,759 | ||
Supplemental Disclosure of Cash Flow Information: | ||||||
Cash paid for interest, net of capitalized interest cost | $ | 278,188 | $ | 199,014 | ||
Cash paid for income taxes | $ | 36,793 | $ | 418,775 | ||
Cash and bank balances | 5,144,414 | 11,980,759 | ||||
Restricted cash | 899,508 | - | ||||
Total cash, cash equivalents and restricted cash shown in the statement of cash flows | 6,043,922 | 11,980,759 | ||||
View original content:https://www.prnewswire.com/news-releases/it-tech-packaging-inc-announces-second-quarter-2024-unaudited-financial-results-302220002.html
SOURCE IT Tech Packaging, Inc.
FAQ
What was IT Tech Packaging's (ITP) revenue for Q2 2024?
How did IT Tech Packaging's (ITP) gross profit change in Q2 2024?
What was IT Tech Packaging's (ITP) net loss for Q2 2024?
How much did IT Tech Packaging's (ITP) EBITDA change in Q2 2024?
