IT Tech Packaging, Inc. Officially Starts its Surgical Masks Production

Rhea-AI Summary

IT Tech Packaging, Inc. (NYSE American: ITP) has officially commenced production of surgical masks, following a successful trial period. The production aims to meet the rising demand due to the ongoing COVID-19 pandemic, with an expected annual capacity of 38 million masks and a projected gross profit margin of 35%. The masks comply with China's pharmaceutical standards and are being sold to local industries, while also gaining bidding qualifications from hospitals and pharmaceutical companies. Demand for medical masks in Asia-Pacific is anticipated to grow at a CAGR of 9.42% through 2026.

Positive

• Official start of surgical masks production.
• Annual production capacity expected to reach 38 million masks.
• Projected gross profit margin of approximately 35%.
• Gained bidding qualifications from various pharmaceutical companies and hospitals.

Negative

• None.

BAODING, China, Dec. 7, 2021 /PRNewswire/ -- IT Tech Packaging, Inc. (NYSE American: ITP) ("IT Tech Packaging" or "the Company"), a leading manufacturer and distributor of diversified paper products in North China, today announced that the Company has officially started its surgical masks production after a month of trial production since the end of November 2021. The Company's surgical masks comply with China's pharmaceutical industry standard YY0469-2011. The annual production capacity of the surgical masks is expected to reach 38 million pieces of mask and gross profit margin is expected to reach approximately 35%. The Company's surgical masks have been sold to the local catering and sanitation industries, and the Company has also obtained bidding qualifications from various pharmaceutical companies and hospitals.

According to a report by Arizton, an advisory firm providing comprehensive market intelligence reports and advisory and consulting services, the demand for the medical face masks was high as the impact of Covid-19 pandemic continued to expand. The unit shipment value of medical masks is expected to grow to 13 billion units by 2026. Asia-Pacific is ranked second in consumption of medical masks with an expected CAGR of 9.42%. For more information about the report, please visit https://www.arizton.com/market-reports/medical-mask-market-size-analysis.

Mr. Zhenyong Liu, Chairman and Chief Executive Officer of the Company commented, " Surgical masks are a key measure and considered as first line of defense to prevent the spread of Covid-19 pandemic, therefore, the demand for surgical masks has steadily increased as the fight against COVID-19 becomes normal globally. As our new product, surgical masks represent the expansion of our business scale. We will continue to strengthen our business operation, optimize the product portfolio, and generate significant economic benefits."

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/.

Safe Harbor Statements

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

For more information, please contact:

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

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

View original content:https://www.prnewswire.com/news-releases/it-tech-packaging-inc-officially-starts-its-surgical-masks-production-301438665.html

SOURCE IT Tech Packaging, Inc.

FAQ

What is the stock symbol for IT Tech Packaging?

The stock symbol for IT Tech Packaging is ITP.

When did IT Tech Packaging start producing surgical masks?

IT Tech Packaging officially started producing surgical masks in December 2021.

What is the annual production capacity for surgical masks at IT Tech Packaging?

The annual production capacity for surgical masks is expected to reach 38 million pieces.

What is the expected gross profit margin for surgical masks produced by IT Tech Packaging?

The expected gross profit margin for the surgical masks is approximately 35%.

What market trend is impacting the demand for medical masks?

The ongoing COVID-19 pandemic is significantly increasing the demand for medical masks.