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
|
|
View original
content:https://www.prnewswire.com/news-releases/it-tech-packaging-inc-announces-third-quarter-2022-unaudited-financial-results-301674883.html
SOURCE IT Tech Packaging, Inc.