BAODING, China, May 27, 2020 /PRNewswire/ -- IT Tech Packaging,
Inc. (NYSE MKT: ITP) ("IT Tech Packaging" or "the Company"), a
leading manufacturer and distributor of diversified paper products
in North China, today announced
that its operating entity in China, Hebei Baoding Dongfang Paper Milling
Company Limited ("Dongfang Paper"), has entered into a letter of
intent to acquire 60% equity interest in Baoding Huizhi Ruixing
Information Technology Co., Ltd. ("HZRX"), a new high technology
company with registered capital of RMB10
million focused on providing intelligent healthcare IT
solutions to hospitals, medical institutions, government agencies,
enterprises and public institutions in China. HZRX also focus on utilization of block
chain technologies to provide solutions of privacy, encryption, and
security in the health care industry.
Pursuant to the Letter of Intent entered into on May 26, 2020 by and between Dongfang Paper and
HZRX, the Company will acquire 60% equity interest in HZRX for i)
total cash consideration of between RMB10
million minimum and RMB20
million (approximately US$1.4
million to US$2.8 million),
and ii) total equity consideration of 500,000 of the Company's
restricted common stock (the "Proposed Transaction"). The Proposed
Transaction is subject to a definitive acquisition agreement to be
negotiated between the two parties, following further financial and
legal reviews and approval of the Company's Board of Directors, as
well as other customary closing conditions. The Company plans to
facilitate the proposed transaction by using cash on hand and
issuing new shares.
Mr. Zhenyong Liu, the CEO and Chairman of the Company
commented, "We are impressed by the operation capability of the
HZRX and optimistic about the intelligent healthcare niche market
as we just launched our initiative in healthcare sector to prepare
us for the next phase of growth. HZRX anticipates that its total
sales revenue and net income will be approximately $17
million and $4 million,
respectively, for 2020. We believe the acquisition of 60% of HZRX
will provide solid contribution to our earnings and pave the way
for us for further growth in the intelligent healthcare businesses.
In 2015, China became the world's third largest
intelligent healthcare market, behind the
United States and Japan.
The investment in China's
intelligent healthcare market was RMB70.6
billion in 2018 and it is expected to be RMB100 billion by 2020, according to the
Zhongshang Industry Research Institute. We are currently evaluating
market opportunities in this new businesses and expect to
officially launch these new businesses upon the completion of the
About Baoding Huizhi Ruixing Information Technology Co.,
Headquartered in Baoding City, Hebei
Province, Huizhi Ruixing Information Technology Co., Ltd., a
high-tech company specializes in providing intelligent healthcare
IT solutions to hospitals, medical institutions, government
agencies, enterprises and public institutions in China. At present, the company has developed a
series of proprietary intelligent medical information technology
solutions, including adverse event reporting system, non-tax
electronic bills system, infectious disease monitoring and
reporting system, regional care system (for maternal, child and
pension), traditional Chinese medicine decoction and regional
delivery system, regional medical and nursing exam systems, etc.
The company also focuses on utilization of block chain technologies
to provide solutions of privacy, encryption, and security in the
health care industry.
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 MKT since December 2009.
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
For more information, please contact:
At the Company Email:
Tel: +86 0312 8698215
EverGreen Consulting Inc.
SOURCE IT Tech Packaging, Inc.