ITP IT Tech Packaging Inc

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549 

 

FORM 8-K

 

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

 

Date of report (Date of earliest event reported): November 9, 2023

 

IT TECH PACKAGING, INC.

(Exact name of registrant as specified in its charter)

 

Nevada

(State or other jurisdiction of incorporation)

 

001-34577		20-4158835
(Commission File Number)		(IRS Employer Identification No.)

 

Science Park, Juli Road Xushui District, Baoding City Hebei Province, People’s Republic of China		072550
(Address of principal executive offices)		(Zip Code)

 

(86) 312-8698215

(Registrant’s telephone number, including area code)

 

 

(Former name or former address, if changed since last report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class		Trading symbol(s)		Name of each exchange on which registered
Common Stock, par value $0.001 per share		ITP		NYSE American LLC

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).

 

Emerging growth company ☐

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

 

 

Item 2.02 Results of Operations and Financial Condition.

 

On November 9, 2023, IT Tech Packaging, Inc. (the “Company”) issued a press release announcing its unaudited financial results for the nine and three months ended September 30, 2023. A copy of the press release making the announcement is attached as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.

 

The information furnished pursuant to this Item 2.02, including Exhibit 99.1, shall not be deemed as “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

 

Item 9.01 Financial Statements and Exhibits.

 

(d) Exhibits.

 

The following exhibits are filed herewith:

 

Exhibit Number		Description
99.1		Press Release.
104		Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

	IT TECH PACKAGING, INC.
Date: November 13, 2023	By:	/s/ Zhenyong Liu
		Name:	Zhenyong Liu
		Title:	Chief Executive Officer

 

 

2

Exhibit 99.1

 

IT Tech Packaging, Inc. Announces third Quarter 2023 Unaudited Financial Results

 

BAODING, China, Nov. 10, 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 nine and three months ended September 30, 2023.

 

Mr. Zhenyong Liu, Chairman and Chief Executive Officer of the Company, commented, “For the first nine months of 2023, the Company realized a total revenue of $65.58 million with a net loss of $5.96 million, slightly falling from the same period of last year. Looking forward, we can see opportunities and challenges coexist, and the long-term positive fundamentals remain unchanged in the uncertain business environment. We believe with the increased policy support for the private economy, the domestic demand and consumption will accelerate further and industrial economy will continue improving. We will make our efforts for a reasonable profit with measures to balance the production and sales, optimize overall products, develop new customers and increase efficiency with a decreased cost.”

 

Third Quarter 2023 Unaudited Financial Results

 

		For the Three Months Ended September 30,
($ millions)		2023				2022				% Change
Revenues			15.77				31.71				-50.26	%
Regular Corrugating Medium Paper (“CMP”)*			11.95				26.06				-54.14	%
Light-Weight CMP**			3.47				5.30				-34.49	%
Offset Printing Paper			0.07				-				-
Tissue Paper Products			0.26				0.29				-9.91	%
Face Masks			0.02				0.06				-73.28	%
Gross profit (loss)			(0.15	)			2.78				-105.50	%
Gross profit (loss) margin			-0.97	%			8.78	%			-9.75	pp***
Regular Corrugating Medium Paper (“CMP”)*			7.01	%			10.91	%			-3.90	pp****
Light-Weight CMP**			-7.47	%			12.84	%			-20.31	pp****
Offset Printing Paper			7.53	%			-				7.53	pp****
Tissue Paper Products***			-278.10	%			-258.46	%			-19.64	pp****
Face Masks			-15.75	%			29.62	%			-45.37	pp****
Operating income（loss）			(2.48	)			(0.59	)			-323.29	%
Net income (loss)			(1.98	)			(1.89	)			-4.67	%
EBITDA			1.69				2.43				-30.45	%
Basic and Diluted earnings (loss) per share			(0.20	)			(0.19	)			-5.26	%

 

*	Products from PM6
**	Products from PM1
***	Products from PM8 and PM9
****	pp represents percentage points

 

 

●

Revenue decreased by 50.26% to approximately $15.77 million, This was mainly due to the decrease of sales volume of corrugating medium paper (“CMP”) and decrease of average selling prices of CMP and tissue paper products. Gross loss increased by 105.50% to approximately $0.15 million. Total gross loss margin decreased by 9.75 percentage point to 0.97%.

 

●

Loss from operations was approximately $2.48 million, compared to approximately $0.59 million for the same period of last year.

 

●

Net loss was approximately $1.98 million, or loss per share of $0.20, compared to net loss of approximately $1.89 million, or loss per share of $0.19, for the same period of last year.

 

●

Earnings before interest, taxes, depreciation and amortization (“EBITDA”) was approximately $1.69million, compared to$2.43 million for the same period of last year.

 

Revenue

 

For the third quarter of 2023, total revenue decreased by 50.26%, to approximately $15.77 million from approximately $31.71 million for the same period of last year. This was mainly due to the decrease of sales volume of corrugating medium paper (“CMP”) and decrease of average selling prices of CMP and tissue paper products.

 

The following table summarizes revenue, volume and ASP by product for the third quarter of 2023 and 2022, respectively:

 

		For the Three Months Ended September 30,
		2023												2022
		Revenue ($’000)				Volume (tonne)				ASP ($/tonne)				Revenue ($’000)				Volume (tonne)				ASP ($/tonne)
Regular CMP			11,954				34,186				350				26,063				59,848				435
Light-Weight CMP			3,470				10,210				340				5,296				12,507				423
Offset Printing Paper			69				170				407				-				-				-
Tissue Paper Products			264				241				1,096				293				260				1,128
Total			15,757				44,807				352				31,652				72,615				436

 

		Revenue ($’000)				Volume (thousand pieces)				ASP ($/thousand pieces)				Revenue ($’000)				Volume (thousand pieces)				ASP ($/thousand pieces)
Face Masks			15				507				30				57				1,282				44

 

 

Revenue from CMP, including both regular CMP and light-Weight CMP, decreased by 50.82%, to approximately $15.42 million and accounted for 97.79% of total revenue for the third quarter of 2023, compared to approximately $31.36 million, or 98.89% of total revenue for the same period of last year. The Company sold 44,396tonnes of CMP at an ASP of $347/tonne in the third quarter of 2023, compared to 72,355 tonnes at an ASP of $433/tonne in the same period of last year.

 

Of the total CMP sales, revenue from regular CMPdecreased by 54.14%, to approximately $11.95million for the third quarter of 2023, compared to revenue of approximately $26.06 million for the same period of last year. The Company sold 34,186tonnesof regular CMP at an ASP of $350/tonne during the third quarter of 2023, compared to 59,848 tonnes at an ASP of $435/tonne for the same period of last year. Revenue from light-weight CMP decreased by 34.49%, to approximately $3.47 million for the third quarter of 2023, compared to revenue of approximately $5.30 million for the same period of last year. The Company sold 10,210 tonnes of light-weight CMP at an ASP of $340/tonne for the third quarter of 2023, compared to12,507 tonnes at an ASP of $423/tonne for the same period of last year.

 

The Company sold 170tonnes of offset printing paper at an ASP of $407/tonne in the third quarter of 2023. Revenue from offset printing paper was $nil for the third quarter of 2022.

 

Revenue from tissue paper products decreased by 9.91%, to approximately $0.26 million for the third quarter of 2023, from approximately $0.29 million for the same period of last year. The Company sold 241 tonnes of tissue paper products at an ASP of $1,096/tonne for the third quarter of 2023, compared to 260tonnes at an ASP of $1,128/tonne for the same period of last year.

 

Revenue from face masks decreased by 73.28%, to approximately $0.02 million for the third quarter of 2023, from $0.06 million for the same period of last year. The Company sold 507 thousand pieces of face masks for the third quarter of 2023, compared to 1,282 thousand pieces of face masks for the same period of last year.

 

Gross Profit and Gross Margin

 

Total cost of sales decreased by 44.95%, to approximately $15.92 million for the third quarter of 2023 from approximately $28.93 million for the same period of last year.  This was mainly due to the decrease in sales quantity and the decrease in the unit material costs of CMP. Costs of sales per tonne for regular CMP, light-weight CMP, offset printing paper, and tissue paper products were $325, $365,$377 and $4,143, respectively, for the third quarter of 2023, compared to $388, $369,$nil and $4,042 respectively, for the same period of last year.

 

Total gross loss was approximately $0.15 million for the third quarter of 2023, compare to the gross profit of approximately $2.78 million for the same period of last year as a result of factors described above. Overall gross loss margin was 0.97% for the third quarter of 2023, compared to gross profit margin of 8.78% 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 7.01%, -7.47%, 7.53%, -278.10% and -15.75%, respectively, for the third quarter of 2023, compared to 10.91%, 12.84%, nil%, -258.46% and 29.62%, respectively, for the same period of last year.

 

 

Selling, General and Administrative Expenses

 

Selling, general and administrative expenses (“SG&A”) decreased by 30.73%, to approximately $2.33 million for the third quarter of 2023 from approximately $3.37 million for the same period of last year.

 

Loss from Operations

 

Loss from operations was approximately $2.48 million for the third quarter of 2023, a decrease of 323.29%, from loss from operations of approximately $0.59 million for the same period of last year. Operating loss margin was 15.75% for the third quarter of 2023, compared to operating loss margin of 1.85% for the same period of last year.

 

Net Loss

 

Net loss was approximately $1.98 million, or loss per share of $0.20, for the third quarter of 2023, compared to net loss of approximately $1.89 million, or loss per share of $0.19, for the same period of last year.

 

EBITDA

 

EBITDA was approximately $1.69 million for the third quarter of 2023, compared to approximately $2.43 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)		2023				2022
Net loss			-1.98				-1.89
Add: Income tax			0.00				0.43
Net interest expense			0.25				0.26
Depreciation and amortization			3.42				3.63
EBITDA			1.69				2.43

 

 

Nine Months Ended September 30, 2023 Unaudited Financial Results

 

		For the Nine Months Ended September 30,
($ millions)		2023				2022				% Change
Revenues			65.58				78.98				-16.96	%
Regular Corrugating Medium Paper (“CMP”)*			50.35				65.02				-22.55	%
Light-Weight CMP**			11.07				12.66				-12.53	%
Offset Printing Paper			3.23				-				-
Tissue Paper Products			0.83				1.10				-24.62	%
Face Masks			0.10				0.20				-52.71	%
Gross profit			0.75				3.73				-79.89	%
Gross profit (loss) margin			1.14	%			4.72	%			-3.58	pp****
Regular Corrugating Medium Paper (“CMP”)*			5.26	%			7.15	%			-1.89	pp****
Light-Weight CMP**			1.68	%			9.17	%			-7.49	pp****
Offset Printing Paper			2.53	%			-				2.53	pp****
Tissue Paper Products***			-258.64	%			-193.65	%			-64.99	pp****
Face Masks			-9.26	%			25.73	%			-34.99	****
Operating loss			-5.78				-4.81				-20.00	%
Net loss			-5.96				-4.66				-27.85	%
EBITDA			5.73				7.19				-20.31	%
Basic and Diluted loss per share			-0.59				-0.47				-25.53	%

 

*	Products from PM6

**	Products from PM1

***	Products from PM8 and PM9

****	pp represents percentage points

 

Revenue

 

For the nine months ended September 30, 2023, total revenue decreased by 16.96%, to approximately $65.58 million from approximately $78.98 million for the same period of last year. This was mainly due to the decrease in ASP of CMP.

 

 

The following table summarizes revenue, volume and ASP by product for the nine months ended September 30, 2023 and 2022, respectively:

 

		For the Nine Months Ended September 30,
		2023												2022
		Revenue ($’000)				Volume (tonne)				ASP ($/tonne)				Revenue ($’000)				Volume (tonne)				ASP ($/tonne)
Regular CMP			50,353				135,912				370				65,015				139,036				468
Light-Weight CMP			11,074				31,106				356				12,660				27,990				452
Offset Printing Paper			3,225				5,573				579				-				-				-
Tissue Paper Products			831				726				1,145				1,103				1,040				1,061
Total			65,483				173,317				378				78,778				168,066				469

  

		Revenue ($’000)				Volume (thousand pieces)				ASP ($/thousand pieces)				Revenue ($’000)				Volume (thousand pieces)				ASP ($/thousand pieces)
Face Masks			95				3,023				31				201				4,295				47

 

Revenue from CMP, including both regular CMP and light-Weight CMP, decreased by 20.92%, to approximately $61.43 million and accounted for 93.66% of total revenue for nine months ended September 30, 2023, compared to approximately $77.68 million, or 98.35% of total revenue for the same period of last year. The Company sold 167,018tonnes of CMP at an ASP of $368/tonne in nine months ended September 30, 2023, compared to 167,026 tonnes at an ASP of $465/tonne in the same period of last year.

 

Of the total CMP sales, revenue from regular CMP decreased by 22.55%, to approximately $50.35 million for nine months ended September 30, 2023, compared to revenue of approximately $65.02 million for the same period of last year. The Company sold 135,912tonnesof regular CMP at an ASP of $370/tonne during the nine months ended September 30, 2023, compared to 139,036 tonnes at an ASP of $468/tonne for the same period of last year. Revenue from light-weight CMP decreased by 12.53%, to approximately $11.07 million for the nine months ended September 30, 2023, compared to revenue of approximately $12.66 million for the same period of last year. The Company sold 31,106 tonnes of light-weight CMP at an ASP of $356/tonne for the nine months ended September 30, 2023, compared to 27,990 tonnes at an ASP of $452/tonne for the same period of last year.

 

Revenue from offset printing paper was $3.22 million for the nine months ended September 30, 2023. The Company sold 5,573tonnes of offset printing paper at an ASP of $579/tonne in the nine months ended September 30, 2023. Revenue from offset printing paper was $nil for the nine months ended September 30, 2022.

 

Revenue from tissue paper products decreased by 24.62%, to approximately $0.83million for the nine months ended September 30, 2023, from approximately $1.10 million for the same period of last year. The Company sold 726 tonnes of tissue paper products at an ASP of $1,145/tonne for the nine months ended September 30, 2023, compared to 1,040tonnes at an ASP of $1,061/tonne for the same period of last year.

 

 

Revenue from face masks decreased by 52.71%, to approximately $0.10 million for the nine months ended September 30, 2023, from $0.20 million for the same period of last year. The Company sold 3,023 thousand pieces of face masks for the nine months ended September 30, 2023, compared to 4,295 thousand pieces of face masks for the same period of last year.

 

Gross Profit and Gross Margin

 

Total cost of sales decreased by 13.85%, to approximately $64.83 million for the nine months ended September 30, 2023 from approximately $75.25 million for the same period of last year. This was mainly due to the 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 $351, $350, $564 and $4,107, respectively, for the nine months ended September 30, 2023, compared to $434, $411,$nil and $3,114, respectively, for the same period of last year.

 

Total gross profit was approximately $0.75 million for the nine months ended September 30, 2023, compare to the gross profit of approximately $3.73 million for the same period of last year as a result of factors described above. Overall gross margin was 1.14% for the nine months ended September 30, 2023, compared to 4.72% 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 5.26%, 1.68%, 2.53%, -258.64% and -9.26%, respectively, for the nine months ended September 30, 2023, compared to 7.15%, 9.17%, nil%, -193.65% and 25.73%, respectively, for the same period of last year.

 

Selling, General and Administrative Expenses

 

Selling, general and administrative expenses (“SG&A”) decreased by 27.96%, to approximately $6.15 million for the nine months ended September 30, 2023 from approximately $8.54 million for the same period of last year.

 

Loss from Operations

 

Loss from operations was approximately $5.78 million for the nine months ended September 30, 2023, a decrease of 20.00%, from loss from operations of approximately $4.81 million for the same period of last year. Operating loss margin was 8.81% for the nine months ended September 30, 2023, compared to operating loss margin of 6.09% for the same period of last year.

 

Net Loss

 

Net loss was approximately $5.96 million, or loss per share of $0.59, for the nine months ended September 30, 2023, compared to net loss of approximately $4.66 million, or loss per share of $0.47, for the same period of last year.

 

EBITDA

 

EBITDA was approximately $5.73 million for the nine months ended September 30, 2023, compared to approximately $7.19 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)		2023				2022
Net loss			-5.96				-4.66
Add: Income tax			0.35				-0.16
Net interest expense			0.77				0.79
Depreciation and amortization			10.57				11.22
EBITDA			5.73				7.19

 

Cash, Liquidity and Financial Position

 

As of September 30, 2023, 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 $9.44million, $6.65million and $6.56 million, respectively, compared to approximately$9.52million, $11.16million and $4.20 million, respectively, as of December 31, 2022.

 

Net accounts receivable was approximately $2.79 million as of September 30, 2023, compared to $nil as of December 31, 2022. Net inventory was approximately $5.36 million as of September 30, 2023, compared to approximately $2.87 million as of December 31, 2022. As of September 30, 2023, the Company had current assets of approximately $41.06 million and current liabilities of approximately$12.02million, resulting in a working capital of approximately $29.04 million. This was compared to current assets of approximately $47.17 million and current liabilities of approximately $17.64 million, resulting in a working capital of approximately $29.53 million as of December 31, 2022.

 

Net cash provided by operating activities was approximately $7.50million for the nine months ended September 30, 2023, compared to approximately $7.43 million for the same period of last year. Net cash used in investing activities was approximately $9.21 million for the nine months ended September 30, 2023, compared to approximately $8.19 million for the same period of last year. Net cash provided by financing activities was approximately $2.00 million for the nine months ended September 30, 2023, compared to approximately $6.84million 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 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, 2023 AND DECEMBER 31, 2022

(unaudited)

 

		September 30,				December 31,
		2023				2022
ASSETS
Current Assets
Cash and bank balances		$	9,437,941			$	9,524,868
Restricted cash			-				-
Accounts receivable (net of allowance for doubtful accounts of $56,674 and $881,878 as of September 30, 2023 and December 31, 2022, respectively)			2,794,437				-
Inventories			5,364,777				2,872,622
Prepayments and other current assets			20,049,101				27,207,127
Due from related parties			3,414,815				7,561,858
Total current assets			41,061,071				47,166,475
Prepayment on property, plant and equipment			877,462				1,031,502
Operating lease right-of-use assets, net			562,612				672,722
Finance lease right-of-use assets, net			-				1,939,970
Property, plant, and equipment, net			144,603,052				151,569,898
Value-added tax recoverable			1,893,510				2,066,666
Deferred tax asset non-current			-				-
Total Assets		$	188,997,707			$	204,447,233
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities
Short-term bank loans		$	835,678			$	5,598,311
Current portion of long-term loans			4,707,652				4,835,884
Lease liability			96,746				224,497
Accounts payable			104,146				5,025
Advance from customers			18,751				-
Due to related parties			1,103,317				727,462
Accrued payroll and employee benefits			299,908				165,986
Other payables and accrued liabilities			4,858,444				5,665,558
Income taxes payable			-				417,906
Total current liabilities			12,024,642				17,640,629
Long-term loans			6,562,401				4,204,118
Deferred gain on sale-leaseback			-				52,314
Lease liability - non-current			465,866				579,997
Derivative liability			263				646,283
Total liabilities (including amounts of the consolidated VIE without recourse to the Company of $12,010,014 and $16,784,878 as of September 30, 2023 and December 31, 2022, respectively)			19,053,172				23,123,341
Commitments and Contingencies
Stockholders’ Equity
Common stock, 50,000,000 shares authorized, $0.001 par value per share, 10,065,920 shares issued and outstanding as of September 30, 2023 and December, 31, 2022.			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			(12,931,871	)			(7,514,540	)
Retained earnings			87,612,995				93,575,021
Total stockholders’ equity			169,944,535				181,323,892
Total Liabilities and Stockholders’ Equity		$	188,997,707			$	204,447,233

 

See accompanying notes to condensed consolidated financial statements.

 

 

IT TECH PACKAGING, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2023 AND 2022

(Unaudited)

 

		Three Months Ended								Nine Months Ended
		September 30,								September 30,
		2023				2022				2023				2022
Revenues		$	15,771,560			$	31,709,214			$	65,582,351			$	78,979,716
Cost of sales			(15,924,783	)			(28,925,626	)			(64,832,715	)			(75,251,646	)
Gross (Loss) Profit			(153,223	)			2,783,588				749,636				3,728,070
Selling, general and administrative expenses			(2,334,746	)			(3,370,541	)			(6,153,513	)			(8,541,224	)
Loss on impairment of assets			3,456				-				(371,680	)			-
Loss from Operations			(2,484,513	)			(586,953	)			(5,775,557	)			(4,813,154	)
Other Income (Expense):
Interest income			93,298				7,729				283,203				16,108
Interest expense			(247,818	)			(256,678	)			(767,668	)			(786,597	)
Gain on acquisition			-				(1,759	)			-				30,404
Gain (Loss) on derivative liability			660,429				(617,370	)			646,020				729,263
Loss before Income Taxes			(1,978,604	)			(1,455,031	)			(5,614,002	)			(4,823,976	)
Provision for Income Taxes			3,236				(432,287	)			(348,024	)			160,531
Net Loss			(1,975,368	)			(1,887,318	)			(5,962,026	)			(4,663,445	)
Other Comprehensive Income (Loss)
Foreign currency translation adjustment			1,143,608				(11,171,156	)			(5,417,331	)			(21,769,765	)
Total Comprehensive Loss		$	(831,760	)		$	(13,058,474	)		$	(11,379,357	)		$	(26,433,210	)
Losses Per Share:
Basic and Diluted Losses per Share		$	(0.20	)		$	(0.19	)		$	(0.59	)		$	(0.47	)
Outstanding – Basic and Diluted			10,065,920				9,991,744				10,065,920				9,941,288

 

See accompanying notes to condensed consolidated financial statements.

 

 

IT TECH PACKAGING, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2023 AND 2022

(Unaudited)

 

		Nine Months Ended
		September 30,
		2023				2022
Cash Flows from Operating Activities:
Net income		$	(5,962,026	)		$	(4,663,445	)
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			10,573,288				11,218,254
(Gain) Loss on derivative liability			(646,020	)			(729,263	)
(Gain) Loss from disposal and impairment of property, plant and equipment			956,406				-
Allowance for bad debts			(815,317	)			(791	)
Share-based compensation and expenses			-				1,560,000
Gain on acquisition			-				(30,404	)
Deferred tax			-				(1,197,630	)
Changes in operating assets and liabilities:
Accounts receivable			(2,037,003	)			146,250
Prepayments and other current assets			7,968,553				(422,092	)
Inventories			(2,631,661	)			863,170
Accounts payable			101,328				144,331
Advance from customers			19,140				-
Related parties			120,298				(149,827	)
Accrued payroll and employee benefits			141,773				(42,738	)
Other payables and accrued liabilities			119,132				1,000,945
Income taxes payable			(413,777	)			(265,493	)
Net Cash Provided by Operating Activities			7,494,114				7,431,267
Cash Flows from Investing Activities:
Purchases of property, plant and equipment			(9,211,711	)			(1,681,979	)
Acquisition of land			-				(6,507,431	)
Net Cash Used in Investing Activities			(9,211,711	)			(8,189,410	)
Cash Flows from Financing Activities:
Proceeds from short term bank loans			852,988				602,319
Proceeds from long term loans			2,558,963				60,232
Repayment of bank loans			(5,549,150	)			(307,182	)
Payment of capital lease obligation			(130,470	)			(154,212	)
Loan to a related party (net)			4,264,938				6,638,923
Net Cash Provided by Financing Activities			1,997,269				6,840,080
Effect of Exchange Rate Changes on Cash and Cash Equivalents			(366,599	)			(1,266,146	)
Net (Decrease) Increase in Cash and Cash Equivalents			(86,927	)			4,815,791
Cash, Cash Equivalents and Restricted Cash - Beginning of Period			9,524,868				11,201,612
Cash, Cash Equivalents and Restricted Cash - End of Period		$	9,437,941			$	16,017,403
Supplemental Disclosure of Cash Flow Information:
Cash paid for interest, net of capitalized interest cost		$	1,118,672			$	248,275
Cash paid for income taxes		$	761,801			$	1,287,530
Cash and bank balances			9,437,941				16,017,403
Restricted cash			-				-
Total cash, cash equivalents and restricted cash shown in the statement of cash flows			9,437,941				16,017,403

 

 

12

v3.23.3

Cover	Nov. 09, 2023
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Nov. 09, 2023
Entity File Number	001-34577
Entity Registrant Name	IT TECH PACKAGING, INC.
Entity Central Index Key	0001358190
Entity Tax Identification Number	20-4158835
Entity Incorporation, State or Country Code	NV
Entity Address, Address Line One	Science Park, Juli Road
Entity Address, Address Line Two	Xushui District
Entity Address, Address Line Three	Baoding City
Entity Address, City or Town	Hebei Province
Entity Address, Country	CN
Entity Address, Postal Zip Code	072550
City Area Code	86
Local Phone Number	312-8698215
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common Stock, par value $0.001 per share
Trading Symbol	ITP
Security Exchange Name	NYSEAMER
Entity Emerging Growth Company	false

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