IT Tech Packaging Inc. Announces third Quarter 2024 Unaudited Financial Results
IT Tech Packaging (NYSE American: ITP) reported Q3 2024 financial results showing revenue increased by 59.03% to $25.08 million, driven by higher sales volume of corrugating medium paper (CMP). Gross profit improved to $1.92 million from a loss of $0.15 million year-over-year. The company reported a net loss of $1.97 million, or $0.20 per share, while EBITDA increased to $2.03 million from $1.69 million. CMP products accounted for 99.85% of total revenue, with sales volume reaching 74,884 tonnes at an average selling price of $334/tonne.
IT Tech Packaging (NYSE American: ITP) ha riportato i risultati finanziari del terzo trimestre 2024, evidenziando un aumento del fatturato del 59,03%, raggiungendo i 25,08 milioni di dollari, grazie a un volume di vendite maggiore di carta per ondulazione (CMP). Il profitto lordo è migliorato a 1,92 milioni di dollari, rispetto a una perdita di 0,15 milioni di dollari rispetto all'anno precedente. L'azienda ha riportato una perdita netta di 1,97 milioni di dollari, ovvero 0,20 dollari per azione, mentre l'EBITDA è aumentato a 2,03 milioni di dollari da 1,69 milioni. I prodotti CMP hanno rappresentato il 99,85% del fatturato totale, con un volume di vendite che ha raggiunto 74.884 tonnellate a un prezzo medio di vendita di 334 dollari/tonnellata.
IT Tech Packaging (NYSE American: ITP) informó sobre los resultados financieros del tercer trimestre de 2024, mostrando un aumento en los ingresos del 59,03%, llegando a 25,08 millones de dólares, impulsado por un mayor volumen de ventas de papel para la fabricación de cartón ondulado (CMP). El beneficio bruto mejoró a 1,92 millones de dólares, frente a una pérdida de 0,15 millones de dólares en comparación con el año anterior. La empresa reportó una pérdida neta de 1,97 millones de dólares, o 0,20 dólares por acción, mientras que el EBITDA aumentó a 2,03 millones de dólares desde 1,69 millones. Los productos CMP representaron el 99,85% de los ingresos totales, con un volumen de ventas que alcanzó 74.884 toneladas a un precio medio de venta de 334 dólares/tonelada.
IT Tech Packaging (NYSE American: ITP)는 2024년 3분기 재무 결과를 발표하며 수익이 59.03% 증가한 2508만 달러에 이르렀다고 밝혔습니다. 이는 골판지 매체 용지(CMP)의 높은 판매량에 의한 것입니다. 총 이익은 1.92백만 달러로 개선되었고, 작년 이맘때는 0.15백만 달러의 손실을 기록했습니다. 회사는 1.97백만 달러의 순 손실, 주당 0.20달러를 보고했으며, EBITDA는 1.69백만 달러에서 2.03백만 달러로 증가했습니다. CMP 제품은 총 수익의 99.85%를 차지하며, 판매량은 74,884톤에 달하고 평균 판매가는 톤당 334달러입니다.
IT Tech Packaging (NYSE American: ITP) a publié ses résultats financiers du troisième trimestre 2024, montrant une augmentation des revenus de 59,03% à 25,08 millions de dollars, grâce à un volume de ventes plus élevé de papier de medium ondulé (CMP). Le bénéfice brut s'est amélioré à 1,92 million de dollars par rapport à une perte de 0,15 million de dollars l'année précédente. La société a déclaré une perte nette de 1,97 million de dollars, soit 0,20 dollar par action, tandis que l'EBITDA a augmenté à 2,03 millions de dollars contre 1,69 million. Les produits CMP ont représenté 99,85% des revenus totaux, avec un volume de ventes atteignant 74 884 tonnes à un prix de vente moyen de 334 dollars/tonne.
IT Tech Packaging (NYSE American: ITP) hat die finanziellen Ergebnisse des dritten Quartals 2024 veröffentlicht, die einen Umsatzanstieg von 59,03% auf 25,08 Millionen Dollar zeigen, bedingt durch ein höheres Verkaufsvolumen von Wellpappen-Medium-Papier (CMP). Der Bruttogewinn verbesserte sich auf 1,92 Millionen Dollar im Vergleich zu einem Verlust von 0,15 Millionen Dollar im Vorjahr. Das Unternehmen meldete einen Nettoverlust von 1,97 Millionen Dollar, oder 0,20 Dollar pro Aktie, während EBITDA auf 2,03 Millionen Dollar von 1,69 Millionen Dollar anstieg. CMP-Produkte machten 99,85% des Gesamtumsatzes aus, wobei das Verkaufsvolumen 74.884 Tonnen betrug, bei einem durchschnittlichen Verkaufspreis von 334 Dollar/Tonne.
- Revenue increased 59.03% YoY to $25.08 million in Q3 2024
- Gross profit improved to $1.92 million from -$0.15 million YoY
- EBITDA increased to $2.03 million from $1.69 million YoY
- Working capital improved to $12.22 million from $6.94 million as of December 2023
- Net loss of $1.97 million in Q3 2024
- Operating loss of $1.46 million in Q3 2024
- Average selling prices declined for CMP products
- Nine-month revenue decreased 11.26% to $58.20 million
Insights
The Q3 2024 results show mixed signals for ITP. Revenue increased significantly by
However, concerning factors persist: The company continues to operate at a loss (
ASP declines across products and continued operating losses suggest ongoing market challenges, despite volume improvements. The company's turnaround efforts show some progress but haven't yet achieved sustainable profitability.
BAODING,
Third Quarter 2024 Unaudited Financial Results
For the Three Months Ended September 30, | |||||
($ millions) | 2024 | 2023 | % Change | ||
Revenues | 25.08 | 15.77 | 59.03 % | ||
Regular Corrugating Medium Paper ("CMP")* | 20.91 | 11.95 | 74.93 % | ||
Light-Weight CMP** | 4.13 | 3.47 | 19.16 % | ||
Offset Printing Paper | - | 0.07 | - | ||
Tissue Paper Products | - | 0.26 | - | ||
Face Masks | - | 0.02 | - | ||
Gross profit (loss) | 1.92 | (0.15) | 1351.37 % | ||
Gross profit (loss) margin | 7.64 % | -0.97 % | 8.61pp*** | ||
Regular Corrugating Medium Paper ("CMP")* | 7.54 % | 7.01 % | 0.53pp**** | ||
Light-Weight CMP** | 7.33 % | -7.47 % | 14.80pp**** | ||
Offset Printing Paper | - | 7.53 % | - | ||
Tissue Paper Products*** | - | -278.10 % | |||
Face Masks | - | -15.75 % | - | ||
Operating income（loss） | (1.46) | (2.48) | -41.07 % | ||
Net income (loss) | (1.97) | (1.98) | -0.07 % | ||
EBITDA | 2.03 | 1.69 | 20.12 % | ||
Basic and Diluted earnings (loss) per share | (0.20) | (0.20) | - | ||
* Products from PM6 | |||||
** Products from PM1 | |||||
*** Products from PM8 and PM9 | |||||
**** pp represents percentage points | |||||
- Revenue increased by
59.03% to approximately$25.08 million - Gross profit increased by
1351.37% to approximately$1.92 million 7.64% . - Loss from operations was approximately
$1.46 million $2.48 million - Net loss was approximately
$1.97 million $0.20 $1.98 million $0.20 - Earnings before interest, taxes, depreciation and amortization ("EBITDA") was approximately
$2.03 million $1.69 million for the same period of last year.
Revenue
For the third quarter of 2024, total revenue increased by
The following table summarizes revenue, volume and ASP by product for the third quarter of 2024 and 2023, respectively:
For the Three Months Ended September 30, | |||||||||||
2024 | 2023 | ||||||||||
Revenue | Volume | ASP | Revenue | Volume | ASP | ||||||
Regular CMP | 20,910 | 62,121 | 337 | 11,954 | 34,186 | 350 | |||||
Light-Weight CMP | 4,134 | 12,763 | 324 | 3,470 | 10,210 | 340 | |||||
Offset Printing Paper | - | - | - | 69 | 170 | 407 | |||||
Tissue Paper Products | - | - | - | 264 | 241 | 1,096 | |||||
Total | 25,044 | 74,884 | 334 | 15,757 | 44,807 | 352 | |||||
Revenue | Volume | ASP | Revenue | Volume | ASP | ||||||
Face Masks | - | - | - | 15 | 507 | 30 | |||||
Revenue from CMP, including both regular CMP and light-Weight CMP, increased by
Of the total CMP sales, revenue from regular CMP increased by
Revenue from offset printing paper was $nil for the three months ended September 30, 2024, compared with revenue of
Revenue from tissue paper products was $nil for the third quarter of 2024, compared to
Revenue from face masks was $nil for the third quarter of 2024, compared to
Gross Profit and Gross Margin
Total cost of sales increased by
Total gross profit was approximately
Selling, General and Administrative Expenses
Selling, general and administrative expenses ("SG&A") increased by
Loss from Operations
Loss from operations was approximately
Net Loss
Net loss was approximately
EBITDA
EBITDA was approximately
Note 1: Non-GAAP Financial Measures
In addition to our
Reconciliation of Net Income to EBITDA
(Amounts expressed in US$)
For the Three Months Ended September 30, | |||||
($ millions) | 2024 | 2023 | |||
Net loss | -1.97 | -1.98 | |||
Add: Income tax | 0.35 | 0.00 | |||
Net interest expense | 0.17 | 0.25 | |||
Depreciation and amortization | 3.48 | 3.42 | |||
EBITDA | 2.03 | 1.69 | |||
Nine Months Ended September 30, 2024 Unaudited Financial Results
For the Nine Months Ended September 30, | ||||||
($ millions) | 2024 | 2023 | % Change | |||
Revenues | 58.20 | 65.58 | -11.26 % | |||
Regular Corrugating Medium Paper ("CMP")* | 48.64 | 50.35 | -3.39 % | |||
Light-Weight CMP** | 9.44 | 11.07 | -14.76 % | |||
Offset Printing Paper | - | 3.23 | - | |||
Tissue Paper Products | - | 0.83 | - | |||
Face Masks | - | 0.10 | - | |||
Gross profit | 5.58 | 0.75 | 644.60 % | |||
Gross profit (loss) margin | 9.59 % | 1.14 % | 8.45 pp**** | |||
Regular Corrugating Medium Paper ("CMP")* | 9.44 % | 5.26 % | 4.18 pp**** | |||
Light-Weight CMP** | 9.33 % | 1.68 % | 7.65 pp**** | |||
Offset Printing Paper | - | 2.53 % | - | |||
Tissue Paper Products*** | - | -258.64 % | - | |||
Face Masks | - | -9.26 % | - | |||
Operating loss | (4.42) | (5.78) | -23.50 % | |||
Net loss | (5.80) | (5.96) | -2.75 % | |||
EBITDA | 5.94 | 5.73 | 3.66 % | |||
Basic and Diluted loss per share | (0.58) | (0.59) | -1.69 % | |||
* Products from PM6 | ||||||
** Products from PM1 | ||||||
*** Products from PM8 and PM9 | ||||||
**** pp represents percentage points | ||||||
Revenue
For the nine months ended September 30, 2024, total revenue decreased by
The following table summarizes revenue, volume and ASP by product for the nine months ended September 30, 2024 and 2023, respectively:
For the Nine Months EndedSeptember30, | ||||||||||||||
2024 | 2023 | |||||||||||||
Revenue | Volume | ASP | Revenue | Volume | ASP | |||||||||
Regular CMP | 48,644 | 140,574 | 346 | 50,353 | 135,912 | 370 | ||||||||
Light-Weight CMP | 9,440 | 28.345 | 333 | 11,074 | 31,106 | 356 | ||||||||
Offset Printing Paper | - | - | - | 3,225 | 5,573 | 579 | ||||||||
Tissue Paper Products | - | - | - | 831 | 726 | 1,145 | ||||||||
Total | 58,084 | 168,919 | 344 | 65,483 | 173,317 | 378 | ||||||||
Revenue | Volume | ASP | Revenue | Volume | ASP | |||||||||
Face Masks | - | - | - | 95 | 3,023 | 31 | ||||||||
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 nine months ended September 30, 2024, compared to
Revenue from tissue paper products was $nil for the nine months ended September 30, 2024, compared to
Revenue from face masks was $nil for the nine months ended September 30, 2024, compared to
Gross Profit and Gross Margin
Total cost of sales decreased by
Total gross profit was approximately
Selling, General and Administrative Expenses
Selling, general and administrative expenses ("SG&A") increased by
Loss from Operations
Loss from operations was approximately
Net Loss
Net loss was approximately
EBITDA
EBITDA was approximately
Note 1: Non-GAAP Financial Measures
In addition to our
Reconciliation of Net Income to EBITDA
(Amounts expressed in US$)
For the Nine Months Ended September 30, | |||||
($ millions) | 2024 | 2023 | |||
Net loss | -5.80 | -5.96 | |||
Add: Income tax | 0.80 | 0.35 | |||
Net interest expense | 0.59 | 0.77 | |||
Depreciation and amortization | 10.35 | 10.57 | |||
EBITDA | 5.94 | 5.73 | |||
Cash, Liquidity and Financial Position
As of September 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 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:
Email: ir@itpackaging.cn
Tel: +86 312 8698215
IT TECH PACKAGING, INC. | |||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
AS OF SEPTEMBER 30, 2024 AND DECEMBER 31, 2023 | |||||||
(unaudited) | |||||||
September 30, | December 31, | ||||||
2024 | 2023 | ||||||
ASSETS | |||||||
Current Assets | |||||||
Cash and bank balances | $ | 4,414,848 | $ | 3,918,938 | |||
Restricted cash | 478,066 | 472,983 | |||||
Accounts receivable (net of allowance for doubtful | 1,727,370 | 575,526 | |||||
Inventories | 5,732,539 | 3,555,235 | |||||
Prepayments and other current assets | 19,384,595 | 18,981,290 | |||||
Due from related parties | 1,237,479 | 853,929 | |||||
Total current assets | 32,974,897 | 28,357,901 | |||||
Operating lease right-of-use assets, net | 459,612 | 528,648 | |||||
Property, plant, and equipment, net | 154,755,386 | 163,974,022 | |||||
Value-added tax recoverable | 1,828,344 | 1,883,078 | |||||
Total Assets | $ | 190,018,239 | $ | 194,743,649 | |||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
Current Liabilities | |||||||
Short-term bank loans | $ | 856,238 | $ | 423,567 | |||
Current portion of long-term loans | 4,365,385 | 6,874,497 | |||||
Lease liability | 249,976 | 100,484 | |||||
Accounts payable | - | 4,991 | |||||
Advance from customers | 37,101 | 136,167 | |||||
Due to related parties | 732,982 | 728,869 | |||||
Accrued payroll and employee benefits | 362,996 | 237,842 | |||||
Other payables and accrued liabilities | 13,800,118 | 12,912,517 | |||||
Income taxes payable | 349,828 | - | |||||
Total current liabilities | 20,754,624 | 21,418,934 | |||||
Long-term loans | 4,566,601 | 4,503,932 | |||||
Lease liability - non-current | 372,966 | 483,866 | |||||
Derivative liability | 3 | 54 | |||||
Total liabilities (including amounts of the consolidated | 25,694,194 | 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 | (8,770,123) | (10,555,534) | |||||
Retained earnings | 77,830,757 | 83,628,986 | |||||
Total stockholders' equity | 164,324,045 | 168,336,863 | |||||
Total Liabilities and Stockholders' Equity | $ | 190,018,239 | $ | 194,743,649 | |||
IT TECH PACKAGING, INC. | |||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME | |||||||||||||
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2024 AND 2023 | |||||||||||||
(Unaudited) | |||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||
September 30, | September 30, | ||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||
Revenues | $ | 25,081,500 | $ | 15,771,560 | $ | 58,195,129 | $ | 65,582,351 | |||||
Cost of sales | (23,164,119) | (15,924,783) | (52,613,335) | (64,832,715) | |||||||||
Gross Profit (Loss) | 1,917,381 | (153,223) | 5,581,794 | 749,636 | |||||||||
Selling, general and | (3,381,502) | (2,334,746) | (9,999,833) | (6,153,513) | |||||||||
Loss on impairment of | - | 3,456 | - | (371,680) | |||||||||
Loss from Operations | (1,464,121) | (2,484,513) | (4,418,039) | (5,775,557) | |||||||||
Other Income | |||||||||||||
Interest income | 7,313 | 93,298 | 12,303 | 283,203 | |||||||||
Interest expense | (171,430) | (247,818) | (593,271) | (767,668) | |||||||||
Gain on derivative | 2 | 660,429 | 51 | 646,020 | |||||||||
Loss before Income | (1,628,236) | (1,978,604) | (4,998,956) | (5,614,002) | |||||||||
Income Tax (Expenses) | (345,710) | 3,236 | (799,273) | (348,024) | |||||||||
Net Loss | (1,973,946) | (1,975,368) | (5,798,229) | (5,962,026) | |||||||||
Other Comprehensive | |||||||||||||
Foreign currency | 2,843,180 | 1,143,608 | 1,785,411 | (5,417,331) | |||||||||
Total Comprehensive | $ | 869,234 | $ | (831,760) | $ | (4,012,818) | $ | (11,379,357) | |||||
Losses Per Share: | |||||||||||||
Basic and Diluted | $ | (0.20) | $ | (0.20) | $ | (0.53) | $ | (0.59) | |||||
Outstanding – Basic and | 10,065,920 | 10,065,920 | 10,065,920 | 10,065,920 | |||||||||
IT TECH PACKAGING, INC. | ||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2024 AND 2023 | ||||||
(Unaudited) | ||||||
Nine Months Ended | ||||||
September 30, | ||||||
2024 | 2023 | |||||
Cash Flows from Operating Activities: | ||||||
Net income | $ | (5,798,229) | $ | (5,962,026) | ||
Adjustments to reconcile net income to net cash provided by operating | ||||||
Depreciation and amortization | 10,346,181 | 10,573,288 | ||||
(Gain) Loss on derivative liability | (51) | (646,020) | ||||
(Gain) Loss from disposal and impairment of property, plant and equipment | - | 956,406 | ||||
(Recovery from) Allowance for bad debts | 30,262 | (815,317) | ||||
Allowances for inventories, net | (2,951) | - | ||||
Changes in operating assets and liabilities: | ||||||
Accounts receivable | (1,160,996) | (2,037,003) | ||||
Prepayments and other current assets | (122,747) | 7,968,553 | ||||
Inventories | (2,108,280) | (2,631,661) | ||||
Accounts payable | (4,979) | 101,328 | ||||
Advance from customers | (99,219) | 19,140 | ||||
Related parties | (365,452) | 120,298 | ||||
Accrued payroll and employee benefits | 121,000 | 141,773 | ||||
Other payables and accrued liabilities | 1,651,302 | 119,132 | ||||
Income taxes payable | 345,270 | (413,777) | ||||
Net Cash Provided by Operating Activities | 2,831,111 | 7,494,114 | ||||
Cash Flows from Investing Activities: | ||||||
Purchases of property, plant and equipment | (315,152) | (9,211,711) | ||||
Net Cash Used in Investing Activities | (315,152) | (9,211,711) | ||||
Cash Flows from Financing Activities: | ||||||
Proceeds from short term bank loans | 845,082 | 852,988 | ||||
Proceeds from long term loans | - | 2,558,963 | ||||
Repayment of bank loans | (2,957,788) | (5,549,150) | ||||
Payment of capital lease obligation | - | (130,470) | ||||
Loan to a related party (net) | - | 4,264,938 | ||||
Net Cash (Used in) Provided by Financing Activities | (2,112,706) | 1,997,269 | ||||
Effect of Exchange Rate Changes on Cash and Cash Equivalents | 97,740 | (366,599) | ||||
Net Increase (Decrease) in Cash and Cash Equivalents | 500,993 | (86,927) | ||||
Cash, Cash Equivalents and Restricted Cash - Beginning of Period | 4,391,921 | 9,524,868 | ||||
Cash, Cash Equivalents and Restricted Cash - End of Period | $ | 4,892,914 | $ | 9,437,941 | ||
Supplemental Disclosure of Cash Flow Information: | ||||||
Cash paid for interest, net of capitalized interest cost | $ | 382,493 | $ | 1,118,672 | ||
Cash paid for income taxes | $ | 454,003 | $ | 761,801 | ||
Cash and bank balances | 4,414,848 | 9,437,941 | ||||
Restricted cash | 478,066 | - | ||||
Total cash, cash equivalents and restricted cash shown in the | 4,892,914 | 9,437,941 | ||||
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SOURCE IT Tech Packaging, Inc.
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