IT Tech Packaging, Inc. Announces Third Quarter 2022 Unaudited Financial Results

Rhea-AI Summary

IT Tech Packaging, Inc. (ITP) reported a 29.7% decline in Q3 2022 revenue to $31.71 million, primarily due to decreased sales volumes in key product lines. Despite this, gross profit increased 52.8% to $2.78 million, boosting gross margin to 8.8%. The net loss widened to $1.89 million, with EBITDA dropping 54.4% to $2.43 million. For the nine months ended September 30, total revenue decreased 31.8% to $78.98 million. The company continues to focus on optimizing its operations and strategic growth initiatives amid COVID-19 challenges.

Positive

• Gross profit increased by 52.8% to approximately $2.78 million.
• Gross profit margin improved by 4.8 percentage points to 8.8%.
• EBITDA grew significantly by 166.9% to approximately $7.18 million for the nine months ended September 30, 2022.

Negative

• Q3 revenue declined by 29.7% to approximately $31.71 million.
• Net loss widened significantly to approximately $1.89 million, compared to net income of $1.54 million in the prior year.
• Sales of offset printing paper dropped to $nil from approximately $4.80 million in the same period last year.

BAODING, China, Nov. 10, 2022 /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 three and nine months ended September 30, 2022.

Mr. Zhenyong Liu, Chairman and Chief Executive Officer of the Company, commented, "Due to the sporadic situation of COVID-19 in China, the operation of our factory facilities is highly restricted during the three months ended September 30, 2022. However, we still achieved a positive profit year-on-year growth rate of 53% despite facing a volatile commodity price environment impacting our operating costs and the COVID-19 pandemic lockout policies limiting our factory facilities operations. On the strategic front, we continued to deliver high-quality products to our customers, strengthen our business operation, optimize the product portfolio, and seek significant economic benefits. Consistent with our stated strategy, we continued to utilize excess cash flow in a balanced way to make investments in our long-term strategic growth initiatives and to further strengthen the balance sheet. Looking forward, we are committed to creating value for its customers, employees, shareholders, partners, industry, and society by seizing new opportunities and diversifying businesses."

Third Quarter 2022 Unaudited Financial Results

		For the Three Months Ended September 30,
($ millions)		2022		2021		% Change
Revenues		31.71		45.09		-29.7 %
Regular Corrugating Medium Paper ("CMP")*		26.06		31.20		-16.5 %
Light-Weight CMP**		5.30		6.13		-13.6 %
Offset Printing Paper		-		4.80		-100.0 %
Tissue Paper Products		0.29		2.81		-89.6 %
Face Masks		0.06		0.15		-62.6 %
Gross profit		2.78		1.82		52.8 %
Gross profit (loss) margin		8.8 %		4.0 %		4.8 pp****
Regular Corrugating Medium Paper ("CMP")*		10.9 %		2.9 %		8.0 pp****
Light-Weight CMP**		12.8 %		5.6 %		7.2 pp****
Offset Printing Paper		-		16.2 %		-16.2 pp****
Tissue Paper Products***		-258.5 %		-8.7 %		-249.8 pp****
Face Masks		29.6 %		20.4 %		9.2 pp****
Operating loss		-0.59		-0.20		-197.3 %
Net income (loss)		-1.89		1.54		-222.3 %
EBITDA		2.43		5.32		-54.4 %
Basic and Diluted loss per share		-0.03		0.03		-200.0 %
* Products from PM6
** Products from PM1
*** Products from PM8 and PM9
**** pp represents percentage points

• Revenue decreased by 29.7% to approximately $31.71 million, mainly due to the decrease in sales volume of CMP, offset printing paper and tissue paper products.
• Gross profit increased by 52.8% to approximately $2.78 million. Total gross margin increased by 4.8 percentage point to 8.8%.  
• Loss from operations was approximately $0.59 million, compared to loss from operations of approximately $0.20 million for the same period of last year.
• Net loss was approximately $1.89 million, or loss per share of $0.03, compared to net income of approximately $1.54 million, or earnings per share of $0.03, for the same period of last year.
• Earnings before interest, taxes, depreciation and amortization ("EBITDA") was approximately $2.43 million, compared to$5.32 million for the same period of last year.

Revenue

For the third quarter of 2022, total revenue decreased by 29.7%, to approximately $31.71 million from approximately $45.09 million for the same period of last year. This was mainly due to the decrease in sales volume of regular CMP, offset printing paper and tissue paper products.

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

	For the Three Months Ended September 30,
	2022						2021
	Revenue ($'000)		Volume (tonne)		ASP ($/tonne)		Revenue ($'000)		Volume (tonne)		ASP ($/tonne)
Regular CMP	26,063		59,848		435		31,201		61,947		504
Light-Weight CMP	5,296		12,507		423		6,127		12,497		490
Offset Printing Paper	-		-		-		4,795		7,045		681
Tissue Paper Products	293		260		1,128		2,812		2,646		1,063
Total	31,652		72,615		436		44,935		84,135		534
	Revenue ($'000)		Volume (thousand pieces)		ASP ($/thousand pieces)		Revenue ($'000)		Volume (thousand pieces)		ASP ($/thousand pieces)
Face Masks	57		1,282		44		152		3,180		48

Revenue from CMP, including both regular CMP and light-Weight CMP, decreased by 16.0%, to approximately $31.36 million and accounted for 98.9% of total revenue for the third quarter of 2022, compared to approximately $37.33million, or 82.8% of total revenue for the same period of last year. The Company sold 72,355 tonnes of CMP at an ASP of $433/tonne in the third quarter of 2022, compared to 74,444 tonnes at an ASP of $501/tonne in the same period of last year.

Of the total CMP sales, revenue from regular CMP decreased by 16.5%, to approximately $26.06 million for the third quarter of 2022, compared to revenue of approximately $31.20 million for the same period of last year. The Company sold 59,848 tonnesof regular CMP at an ASP of $435/tonne during the third quarter of 2022, compared to 61,947 tonnes at an ASP of $504/tonne for the same period of last year. Revenue from light-weight CMP decreased by 13.6%, to approximately $5.30 million for the third quarter of 2022, compared to revenue of approximately $6.13 million for the same period of last year. The Company sold 12,507 tonnes of light-weight CMP at an ASP of $423/tonne for the third quarter of 2022, compared to 12,497 tonnes at an ASP of $490/tonne for the same period of last year.

Revenue from offset printing paper was $nil for the third quarter of 2022, compared to revenue of approximately $4.80 million for the same period of last year.

Revenue from tissue paper products decreased by 89.6%, to approximately $0.29 million for the third quarter of 2022, from approximately $2.81 million for the same period of last year. The Company sold 260tonnesof tissue paper products at an ASP of $1,128/tonne for the third quarter of 2022, compared to 2,646 tonnes at an ASP of $1,063/tonne for the same period of last year.

Revenue from face masks decreased by 62.6%, to approximately $0.06 million for the third quarter of 2022, from $0.15 million for the same period of last year. The Company sold 1,282 thousand pieces of face masks for the third quarter of 2022, compared to3,180 thousand pieces of face masks for the same period of last year.

Gross Profit and Gross Margin

Total cost of sales decreased by 33.1%, to approximately $28.93 million for the third quarter of 2022 from approximately $43.27 million for the same period of last year. This was mainly due to the decrease in sales quantity of regular CMP, offset printing paper and tissue paper products, and the decrease in material costs of CMP. Costs of sales per tonne for regular CMP, light-weight CMP, offset printing paper, and tissue paper products were $388, $369,$nil and $4,042, respectively, for the third quarter of 2022, compared to $489, $463, $570 and $1,155, respectively, for the same period of last year.

Total gross profit was approximately $2.78 million for the third quarter of 2022, compared to the gross profit of approximately $1.82 million for the same period of last year as a result of factors described above. Overall gross margin was 8.8% for the third quarter of 2022, compared to 4.0% 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 10.9%, 12.8%, nil%, -258.5% and 29.6%, respectively, for the third quarter of 2022, compared to 2.9%, 5.6%, 16.2%, -8.7% and 20.4%, respectively, for the same period of last year.

Selling, General and Administrative Expenses

Selling, general and administrative expenses ("SG&A") increased by 66.9%, to approximately $3.37 million for the third quarter of 2022 from approximately $2.02million for the same period of last year.

Loss from Operations

Loss from operations was approximately $0.59 million for the third quarter of 2022, a decrease of 197.3%, from loss from operations of approximately $0.20 million for the same period of last year. Operating loss margin was 1.9% for the third quarter of 2022, compared to operating loss margin of 0.4% for the same period of last year.

Net Loss

Net loss was approximately $1.89 million, or loss per share of $0.03, for the third quarter of 2022, compared to net income of approximately $1.54 million, or earnings per share of $0.03, for the same period of last year.

EBITDA

EBITDA was approximately $2.43 million for the third quarter of 2022, compared to approximately $5.32 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 September 30,
($ millions)		2022			2021
Net income (loss)		-1.89			1.54
Add: Income tax		0.43			-0.07
Net interest expense		0.26			0.28
Depreciation and amortization		3.63			3.57
EBITDA		2.43			5.32

Nine Months Ended September 30, 2022 Unaudited Financial Results

		For the Nine Months Ended September 30,
($ millions)		2022		2021		% Change
Revenues		78.98		115.83		-31.8 %
Regular Corrugating Medium Paper ("CMP")*		65.02		78.42		-17.1 %
Light-Weight CMP**		12.66		16.44		-23.0 %
Offset Printing Paper		-		14.10		-100.0 %
Tissue Paper Products		1.10		6.49		-83.0 %
Face Masks		0.20		0.39		-48.7 %
Gross profit		3.73		6.68		-44.2 %
Gross profit (loss) margin		4.7 %		5.8 %		-1.1 pp****
Regular Corrugating Medium Paper ("CMP")*		7.2 %		5.0 %		2.2 pp****
Light-Weight CMP**		9.2 %		7.3 %		1.9 pp****
Offset Printing Paper		-		17.5 %		-17.5 pp****
Tissue Paper Products***		-193.6 %		-14.4 %		-179.2 pp****
Face Masks		25.7 %		17.0 %		8.7 pp****
Operating loss		-4.78		-0.49		-874.2 %
Net loss		-4.66		-3.25		-43.5 %
EBITDA		7.18		2.69		166.91 %
Basic and Diluted loss per share		-0.07		-0.06		-16.7 %
* Products from PM6
** Products from PM1
*** Products from PM8 and PM9
**** pp represents percentage points

Revenue

For the nine months ended September 30, 2022, total revenue decreased by 31.8%, to approximately $78.98million from approximately $115.83 million for the same period of last year. This was mainly due to the decrease in sales volume of corrugating medium paper ("CMP") and offset printing paper and tissue paper products. The following table summarizes revenue, volume and ASP by product for the nine months ended September 30, 2022 and 2021, respectively:

	For the Nine Months Ended September 30,
	2022						2021
	Revenue ($'000)		Volume (tonne)		ASP ($/tonne)		Revenue ($'000)		Volume (tonne)		ASP ($/tonne)
Regular CMP	65,015		139,036		468		78,417		156,080		502
Light-Weight CMP	12,660		27,990		452		16,437		33,658		488
Offset Printing Paper	-		-		-		14,095		20,602		684
Tissue Paper Products	1,103		1,040		1,061		6,491		5,963		1,089
Total	78,778		168,066		469		115,440		216,303		534
	Revenue ($'000)		Volume (thousand pieces)		ASP ($/thousand pieces)		Revenue ($'000)		Volume (thousand pieces)		ASP ($/thousand pieces)
Face Masks	201		4,295		47		392		9,650		41

Revenue from CMP, including both regular CMP and light-Weight CMP, decreased by 18.1%, to approximately $77.68 million and accounted for 98.3% of total revenue for nine months ended September 30, 2022, compared to approximately $94.85 million, or 81.9% of total revenue for the same period of last year. The Company sold 167,026tonnes of CMP at an ASP of $465/tonne in nine months ended September 30, 2022, compared to 189,738 tonnes at an ASP of $500/tonne in the same period of last year.

Of the total CMP sales, revenue from regular CMP decreased by 17.1%, to approximately $65.02 million for nine months ended September 30, 2022, compared to revenue of approximately $78.42million for the same period of last year. The Company sold 139,036tonnesof regular CMP at an ASP of $468/tonne during the nine months ended September 30, 2022, compared to 156,080 tonnes at an ASP of $502/tonne for the same period of last year. Revenue from light-weight CMP decreased by 23.0%, to approximately $12.66 million for the nine months ended September 30, 2022, compared to revenue of approximately $16.44 million for the same period of last year. The Company sold 27,990 tonnes of light-weight CMP at an ASP of $452/tonne for the nine months ended September 30, 2022, compared to 33,658 tonnes at an ASP of $488/tonne for the same period of last year.

Revenue from offset printing paper was $nil for the nine months ended September 30, 2022, compared to revenue of approximately $14.10 million for the same period of last year. The Company sold 20,602 tonnes of offset printing paper at an ASP of $684/tonne in the nine months ended September 30, 2021.

Revenue from tissue paper products decreased by 83.0%, to approximately $1.10million for the nine months ended September 30, 2022, from approximately $6.49 million for the same period of last year. The Company sold 1,040 tonnes of tissue paper products at an ASP of $1,061/tonne for the nine months ended September 30, 2022, compared to 5,963 tonnes at an ASP of $1,089/tonne for the same period of last year.

Revenue from face masks decreased by 48.7%, to approximately $0.20 million for the nine months ended September 30, 2022, from $0.39 million for the same period of last year. The Company sold 4,295 thousand pieces of face masks for the nine months ended September 30, 2022, compared to 9,650 thousand pieces of face masks for the same period of last year.

Gross Profit and Gross Margin

Total cost of sales decreased by 31.1%, to approximately $75.25 million for the nine months ended September 30, 2022 from approximately $109.15 million for the same period of last year. This was mainly a result of the decrease in sales volume of CMP and offset printing paper and decrease of material costs of CMP. Costs of sales per tonne for regular CMP, light-weight CMP, offset printing paper and tissue paper products were $434, $411,$nil and$3,114, respectively, for the nine months ended September 30, 2022, compared to $477, $453, $565 and $1,245, respectively, for the same period of last year.

Total gross profit was approximately $3.73million for the nine months ended September 30, 2022, compared to the gross profit of approximately $6.68 million for the same period of last year as a result of factors described above. Overall gross margin was 4.7% for the nine months ended September 30, 2022, compared to 5.8% 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 7.2%, 9.2%, nil%, -193.6%, and25.7%, respectively, for the nine months ended September 30, 2022, compared to 5.0%, 7.3%, 17.5%, -14.4% and 17.0%, respectively, for the same period of last year.

Selling, General and Administrative Expenses

Selling, general and administrative expenses ("SG&A") increased by 19.1%, to approximately $8.54 million for the nine months ended September 30, 2022 from approximately $7.17million for the same period of last year.

Loss from Operations

Loss from operations was approximately $4.78 million for the nine months ended September 30, 2022, a decrease of 874.2%, from loss from operations of approximately $0.49 million for the same period of last year. Operating loss margin was 6.1% for the nine months ended September 30, 2022, compared to operating loss margin of 0.4% for the same period of last year.

Net Loss

Net loss was approximately $4.66 million, or loss per share of $0.07, for the nine months ended September 30, 2022, compared to net loss of approximately $3.25 million, or loss per share of $0.06, for the same period of last year.

EBITDA

EBITDA was approximately $7.18 million for the nine months ended September 30, 2022, compared to approximately $2.69 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 Nine Months Ended September 30,
($ millions)		2022			2021
Net loss		-4.66			-3.25
Add: Income tax		-0.16			-4.95
Net interest expense		0.79			-0.84
Depreciation and amortization		11.22			11.73
EBITDA		7.18			2.69

Cash, Liquidity and Financial Position

As of September 30, 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 related party loans) of approximately $16.02million, $10.54 million and $4.69 million, respectively, compared to approximately$11.20 million, $13.52 million and $2.98 million, respectively, as of December 31, 2021.

Net accounts receivable was approximately $4.24 million as of September 30, 2022, compared to approximately $4.87 million as of December 31, 2021. Net inventory was approximately $4.44 million as of September 30, 2022, compared to approximately$5.84 million as of December 31, 2021. As of September 30, 2022, the Company had current assets of approximately$48.43 million and current liabilities of approximately$17.59million, resulting in a working capital of approximately$30.84 million. This was compared to current assets of approximately $55.52 million and current liabilities of approximately $20.43 million, resulting in a working capital of approximately $35.09 million as of December 31, 2021.

Net cash provided by operating activities was approximately$7.43 million for the nine months ended September 30, 2022, compared to net cash used in operating activities of approximately $6.44 million for the same period of last year. Net cash used in investing activities was approximately$8.19 million for the nine months ended September 30, 2022, compared to approximately$12.78 million for the same period of last year. Net cash provided by financing activities was approximately$6.84million for the nine months ended September 30, 2022, compared to approximately$41.55 million for the same period of last year.

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. For more information, please visit: http://www.itpackaging.cn/.

Forward-looking Statement

This release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements give our current expectations, opinion, belief or forecasts of future events and performance. A statement identified by the use of forward-looking words including "will," "may," "expects," "projects," "anticipates," "plans," "believes," "estimate," "should," and certain of the other foregoing statements may be deemed forward-looking statements. These forward-looking statements are subject to a number of risks, uncertainties and assumptions, including market and other conditions. More detailed information about the Company and the risk factors that may affect the realization of forward-looking statements is set forth in the Company's filings with the SEC. Investors and security holders are urged to read these documents free of charge on the SEC's web site at http://www.sec.gov.  The Company undertakes no obligation to update any such forward-looking statements after the date hereof to conform to actual results or changes in expectations, except as required by law.

For more information, please contact:

At the Company
Email: ir@itpackaging.cn 
Tel: +86 312 8698215

Investor Relations
Ascent Investor Relations LLC Ms. Tina Xiao
Email: tina.xiao@ascent-ir.com
Tel: +1-917-609-0333

 

 

 

IT TECH PACKAGING, INC. CONDENSED CONSOLIDATED BALANCE SHEETS AS OF SEPTEMBER 30, 2022 AND DECEMBER 31, 2021 (unaudited)
		September 30,				December 31,
		2022				2021
ASSETS
Current Assets
Cash and bank balances		$	16,017,403			$	11,201,612
Restricted cash			-				-
Accounts receivable (net of allowance for doubtful accounts of    $61,270 and $69,053 as of September 30, 2022 and December    31, 2021, respectively)			4,236,299				4,868,934
Inventories			4,441,390				5,844,895
Prepayments and other current assets			22,795,907				25,796,640
Due from related parties			938,803				7,804,068
Total current assets			48,429,802				55,516,149
Prepayment on property, plant and equipment			1,266,120				43,446,210
Operating lease right-of-use assets, net			659,912				-
Finance lease right-of-use assets, net			1,940,586				2,286,459
Property, plant, and equipment, net			149,535,243				126,587,428
Value-added tax recoverable			2,066,239				2,430,277
Deferred tax asset non-current			11,239,637				11,268,679
Total Assets		$	215,137,539			$	241,535,202
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Short-term bank loans		$	5,632,553			$	5,958,561
Current portion of long-term loans from credit union			4,175,620				6,838,465
Lease liability			272,147				210,161
Accounts payable			144,213				10,255
Advance from customers			35,646				39,694
Due to related parties			727,856				727,433
Accrued payroll and employee benefits			221,530				291,206
Other payables and accrued liabilities			5,635,813				5,250,539
Income taxes payable			746,694				1,108,038
Total current liabilities			17,592,072				20,434,352
Loans from credit union			4,692,235				2,980,065
Deferred gain on sale-leaseback			73,311				155,110
Lease liability - non-current			568,952				152,233
Derivative liability			1,334,271				2,063,534
Total liabilities (including amounts of the consolidated VIE without recourse to the Company of $17,417,813 and $17,924,475 as of September 30, 2022 and December 31, 2021, respectively)			24,260,841				25,785,294
Commitments and Contingencies
Stockholders' Equity
Common stock, 50,000,000 shares authorized, $0.001 par value per share, 11,415,920 and 9,915,920 shares issued and outstanding as of September 30, 2022 and December, 31, 2021, respectively.			11,416				9,916
Additional paid-in capital			90,575,421				89,016,921
Statutory earnings reserve			6,080,574				6,080,574
Accumulated other comprehensive (loss) income			(11,273,597)				10,496,168
Retained earnings			105,482,884				110,146,329
Total stockholders' equity			190,876,698				215,749,908
Total Liabilities and Stockholders' Equity		$	215,137,539			$	241,535,202

 

 

 

IT TECH PACKAGING, INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2022 AND 2021 (Unaudited)
		Three Months Ended September 30,								Nine Months Ended September 30,
		2022				2021				2022				2021
Revenues		$	31,709,214			$	45,087,671			$	78,979,716			$	115,832,013
Cost of sales			(28,925,626)				(43,266,135)				(75,251,646)				(109,150,452)
Gross Profit			2,783,588				1,821,536				3,728,070				6,681,561
Selling, general and administrative expenses			(3,370,541)				(2,019,565)				(8,541,224)				(7,172,495)
Gain on acquisition			(1,759)				-				30,404				-
Loss from Operations			(588,712)				(198,029)				(4,782,750)				(490,934)
Other Income (Expense):
Interest income			7,729				12,044				16,108				28,096
Subsidy income			-				(30)				-				197,861
Interest expense			(256,678)				(281,670)				(786,597)				(844,470)
Gain (Loss) on derivative liability			(617,370)				1,938,873				729,263				2,810,913
(Loss) Income before Income Taxes			(1,455,031)				1,471,188				(4,823,976)				1,701,466
Provision for Income Taxes			(432,287)				71,388				160,531				(4,950,994)
Net (Loss) Income			(1,887,318)				1,542,576				(4,663,445)				(3,249,528)
Other Comprehensive (Loss) Income
Foreign currency translation adjustment			(11,171,156)				(819,183)				(21,769,765)				1,128,209
Total Comprehensive (Loss) Income		$	(13,058,474)			$	723,393			$	(26,433,210)			$	(2,121,319)
(Losses) Earnings Per Share:
Basic and Diluted (Losses) Earnings per Share		$	(0.03)			$	0.03			$	(0.07)			$	(0.06)
Outstanding – Basic and Diluted			71,449,208				54,196,300				71,449,208				54,196,300

 

 

 

IT TECH PACKAGING, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2022 AND 2021 (Unaudited)
		Nine Months Ended
		September 30,
		2022			2021
Cash Flows from Operating Activities:
Net income		$	(4,663,445)		$	(3,249,528)
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			11,218,254			11,733,664
(Gain) Loss on derivative liability			(729,263)			(2,810,913)
Gain on acquisition			(32,502)			-
(Recovery from) Allowance for bad debts			(791)			20,118
Share-based compensation and expenses			1,560,000			-
Deferred tax			(1,197,630)			3,235,556
Changes in operating assets and liabilities:
Accounts receivable			146,250			(1,742,594)
Prepayments and other current assets			(422,092)			(6,918,816)
Inventories			863,170			(6,396,066)
Accounts payable			144,331			(242,357)
Advance from customers			-			(43,161)
Related parties			(149,827)			(821,943)
Accrued payroll and employee benefits			(42,738)			92,207
Other payables and accrued liabilities			1,000,945			522,353
Income taxes payable			(265,493)			178,903
Net Cash Provided by (Used in) Operating Activities			7,429,169			(6,442,577)
Cash Flows from Investing Activities:
Purchases of property, plant and equipment			(1,681,979)			(12,781,114)
Acquisition of land			(6,507,431)			-
Net Cash Used in Investing Activities			(8,189,410)			(12,781,114)
Cash Flows from Financing Activities:
Proceeds from issuance of shares and warrants, net			-			41,837,553
Proceeds from short term bank loans			602,319			-
Proceeds from long term loans			60,232			-
Repayment of bank loans			(307,182)			(154,579)
Payment of capital lease obligation			(154,212)			(135,611)
Loan repaid by a related party			6,638,923			-
Net Cash Provided by Financing Activities			6,840,080			41,547,363
Effect of Exchange Rate Changes on Cash and Cash Equivalents			(1,264,048)			109,473
Net Increase in Cash and Cash Equivalents			4,815,791			22,433,145
Cash, Cash Equivalents and Restricted Cash - Beginning of Period			11,201,612			4,142,437
Cash, Cash Equivalents and Restricted Cash - End of Period		$	16,017,403		$	26,575,582
Supplemental Disclosure of Cash Flow Information:
Cash paid for interest, net of capitalized interest cost		$	248,275		$	485,075
Cash paid for income taxes		$	1,287,530		$	1,523,555
Cash and bank balances			16,017,403			26,575,582
Restricted cash			-			-
Total cash, cash equivalents and restricted cash shown in the statement of cash flows			16,017,403			26,575,582

 

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SOURCE IT Tech Packaging, Inc.

FAQ

What were IT Tech Packaging's revenue results for Q3 2022?

IT Tech Packaging reported revenue of approximately $31.71 million for Q3 2022, a 29.7% decrease from the previous year.

How did IT Tech Packaging's net loss change in Q3 2022?

The company recorded a net loss of approximately $1.89 million in Q3 2022, significantly up from a net income of $1.54 million in the same quarter of the previous year.

What was the EBITDA for IT Tech Packaging in Q3 2022?

EBITDA for Q3 2022 was approximately $2.43 million, down 54.4% from $5.32 million in Q3 2021.

What overall revenue trend did IT Tech Packaging experience for the nine months ended September 30, 2022?

Total revenue for the nine months ended September 30, 2022, was $78.98 million, reflecting a 31.8% decline compared to the same period in the previous year.

What factors contributed to the revenue decline for IT Tech Packaging in Q3 2022?

The revenue decline was primarily attributed to decreased sales volumes of regular CMP, offset printing paper, and tissue paper products.