BAODING, China, March 24,
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 fourth quarter and audited financial
results for the fiscal year ended December 31, 2022.
Mr. Zhenyong Liu, Chairman and
Chief Executive Officer of the Company, commented, "In fiscal year
2022, our business execution was reflected as we generated
approximately $100.35 million in
revenue and approximately $4.75
million in gross profit. With the domestic business and
markets resumption in an orderly manner as the pandemic is
gradually under control in China,
we expect that the market demand for our products will recover
gradually. "
Fourth Quarter 2022
Financial Results
|
|
|
|
For the Three Months
Ended December 31,
|
($
millions)
|
|
2021
|
|
2022
|
|
%
Change
|
Revenues
|
|
45.05
|
|
21.37
|
|
-52.6 %
|
Regular
Corrugating Medium Paper ("CMP")*
|
|
32.66
|
|
17.28
|
|
47.1 %
|
Light-Weight
CMP**
|
|
7.00
|
|
3.77
|
|
46.1 %
|
Offset Printing
Paper
|
|
2.97
|
|
-
|
|
-100.0 %
|
Tissue Paper
Products
|
|
2.28
|
|
0.25
|
|
-88.9 %
|
Face
Masks
|
|
0.15
|
|
0.06
|
|
-60.7 %
|
|
|
|
|
|
|
|
Gross
profit
|
|
4.34
|
|
1.03
|
|
-76.3 %
|
Gross profit
(loss) margin
|
|
9.6 %
|
|
4.8 %
|
|
-4.8pp****
|
Regular
Corrugating Medium Paper ("CMP")*
|
|
9.6 %
|
|
8.3 %
|
|
-1.3 pp****
|
Light-Weight
CMP**
|
|
12.2 %
|
|
10.3 %
|
|
-1.9 pp****
|
Offset Printing
Paper
|
|
21.5 %
|
|
-
|
|
-
|
Tissue Paper
Products***
|
|
-13.9 %
|
|
-315.2 %
|
|
-301.3
pp****
|
Face
Masks
|
|
25.2 %
|
|
27.5 %
|
|
2.3 pp****
|
|
|
|
|
|
|
|
Operating income
(loss)
|
|
1.95
|
|
-0.49
|
|
-125.2 %
|
Net income
(loss)
|
|
4.16
|
|
-11.91
|
|
-386.6 %
|
EBITDA
|
|
8.66
|
|
3.77
|
|
-56.5 %
|
Basic and Diluted
earnings (loss) per share
|
|
0.45
|
|
-1.19
|
|
-364.4 %
|
|
|
|
|
|
|
|
* Products
from PM6
|
|
|
|
|
|
|
** Products
from PM1
|
|
|
|
|
|
|
*** Products
from PM8 and PM9
|
|
|
|
|
|
|
**** pp
represents percentage points
|
|
|
|
|
|
|
- Revenue decreased by 52.6% to approximately $21.37 million, primarily attributable to an
decrease in sales volume of all categories of products and decrease
in ASP of CMP.
- Gross profit decreased by 76.3% to approximately
$1.03 million. Total gross margin
decreased by 4.8 percentage point to 4.8%.
- Loss from operations was approximately $0.49 million, compared to operation income
of approximately $1.95
million for the same period of last year.
- Net loss was approximately $11.91
million, or loss of $1.19 per basic and diluted share, compared
to net income of approximately $4.16
million, or earnings of $0.45 per basic and
diluted share, for the same period of last year.
- Earnings before interest, taxes, depreciation and amortization
("EBITDA") decreased by 56.5% to approximately $3.77million.
Revenue
For the fourth quarter of 2022, total revenue decreased
by approximately $23.7 million,
or 52.6%, to approximately $21.4
million from approximately $45.0 million for the same period of last
year. The decrease in total revenue was mainly due to the decrease
in sales volume of CMP, offset printing paper and tissue paper
products and the decrease in ASP of CMP and offset printing
paper.
The following table summarizes revenue, volume and ASP by
product for the fourth quarter of 2022 and 2021, respectively:
|
For the Three
Months Ended December 31,
|
|
2021
|
|
2022
|
|
Revenue
($'000)
|
|
Volume
(tonne)
|
|
ASP
($/tonne)
|
|
Revenue
($'000)
|
|
Volume
(tonne)
|
|
ASP
($/tonne)
|
Regular
CMP
|
32,662
|
|
57,410
|
|
569
|
|
17,281
|
|
41,941
|
|
412
|
Light-Weight
CMP
|
6,996
|
|
12,543
|
|
558
|
|
3,768
|
|
9,365
|
|
402
|
Offset Printing
Paper
|
2,967
|
|
3,911
|
|
759
|
|
-
|
|
-
|
|
-
|
Tissue Paper
Products
|
2,278
|
|
2,292
|
|
994
|
|
253
|
|
234
|
|
1,083
|
Total
|
44,903
|
|
76,156
|
|
590
|
|
21,302
|
|
51,540
|
|
413
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
($'000)
|
|
Volume
(thousand
pieces)
|
|
ASP
($/thousand
pieces)
|
|
Revenue
($'000)
|
|
Volume
($/thousand
pieces)
|
|
ASP
($/thousand
pieces)
|
Face
Masks
|
146
|
|
3,014
|
|
49
|
|
57
|
|
1,330
|
|
43
|
Revenue from CMP, including both regular CMP and light-Weight
CMP, decreased by $18.6 million, or 46.9%,
to approximately $21.1
million and accounted for 98.5 % of total revenue for the
fourth quarter of 2022, compared to approximately $39.7 million, or 88.0% of total revenue, for the
same period of last year. The Company sold 51,306 tonnes of CMP at
an ASP of $410/tonne in the fourth quarter of 2022, compared
to 69,953 tonnes at an ASP of $567/tonne in the same period of
last year.
Of the total CMP sales, revenue from regular CMP decreased
by approximately $15.4 million,
or 47.1%, to approximately $17.3
million, resulting from sales of 41,941 tonnes at an ASP
of $412/tonne, during the fourth quarter of 2022, compared to
revenue of approximately$32.7 million, resulting from
sales of 57,410 tonnes at an ASP of $569/tonne, for the same
period of last year. Revenue from light-weight CMP decreased
by approximately $3.2 million,
or 46.1%, to approximately $3.8
million, resulting from sales of 9,365 tonnes at an ASP
of $402/tonne for the fourth quarter of 2022, compared to
revenue of approximately $7.0
million, resulting from sales of 12,543 tonnes at an ASP
of $558/tonne for the same period of last year.
Revenue from offset printing paper was $nil for the three months
ended December 31, 2022, due to
COVID-19, offset printing paper was suspended in 2022.
Revenue from offset printing paper was approximately
$3.0 million for the fourth
quarter of 2021, with 3,911 tonnes sold at an ASP
of $759/tonne.
Revenue from tissue paper products decreased by $2.0
million, or 88.9%, to approximately $0.3 million, resulting from sales of 234 tonnes
at an ASP of $1,083/tonne, for the fourth quarter of 2022,
compared to revenue of approximately$2.3million, resulting
from sales of 2,292 tonnes at an ASP of $994/tonne for the
same period of last year.
Revenue from face masks decreased by $89,508, or 61.2%,
to approximately $56,774 for the fourth quarter
ended December 31, 2022, from $146,282 for the same period of 2021. The Company
sold 1,330 thousand pieces of face masks for the fourth quarter
ended December 31, 2022, compared to 3,014 thousand pieces of
face masks for the same period of 2021.
Gross Profit and Gross Margin
Total cost of sales decreased by $20.3 million, or 49.9%,
to approximately $20.4
million for the fourth quarter of 2022 from approximately
$40.7 million for the same
period of last year. For paper products, overall cost of sales per
tonne was $394 for the fourth quarter of 2022, compared
to $533 for the same period of last year. The decrease in
overall cost of sales was mainly due to the decrease in sales
volume of CMP and offset printing paper and decrease of material
costs of CMP in the fourth quarter of 2022. Costs of sales
per tonne for regular CMP, light-weight CMP, offset printing paper,
and tissue paper products were $378, $361, $nil
and $4,494, respectively, for the fourth quarter of 2022,
compared to $514, $490, $596, and $1,132,
respectively, for the same period of last year.
Total gross profit was approximately $1.0 million for the fourth quarter of 2022,
compare to the gross profit of approximately$4.3
million for the same period of last year as a result of
factors described above. Overall gross margin was 4.8% for the
fourth quarter of 2022, compared to 9.6% 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 8.3%, 10.3%, n/a, -315.2% and 27.5%,
respectively, for the fourth quarter of 2022, compared to 9.6%,
12.2%, 21.5%, -13.9% and 25.2%, respectively, for the same period
of last year.
Selling, General and Administrative Expenses
Selling, general and administrative expenses ("SG&A")
decreased by $0.9million, or 36.4%, to approximately
$1.5 million for the fourth
quarter of 2022 from approximately$2.4 million for the
same period of last year.
Income (Loss) from Operations
Loss from operations was approximately $0.5million for the fourth quarter of 2022,
a decrease of $2.4 million, or
125.2%, from income from operations of approximately
$2.0 million for the same period
of last year. Operating loss margin was -2.3% for the fourth
quarter of 2022, compared to operating margin of 4.3% for the same
period of last year.
Net Income (Loss)
Net loss was approximately $11.9
million, or $1.19 loss per
basic and diluted share for the fourth quarter of 2022,
representing a decrease of $16.1
million, or 386.6%, from net income of approximately
$4.2 million, or $0.45 earnings per basic and diluted share,
for the same period of last year.
EBITDA
EBITDA was approximately $3.8
million for the fourth quarter of 2022, compared
to approximately $8.7
million for the same period of last year.
Note 1: Non-GAAP Financial Measures
In addition to our U.S. GAAP results, this press release
includes a discussion of EBITDA, a non-GAAP financial measure as
defined by the Securities and Exchange Commission ("SEC"). The
Company defines EBITDA as net income before interest, income taxes,
depreciation and amortization. EBITDA is a key measure used by
management to evaluate our results and make strategic decisions.
Management believes this measure is useful to investors because it
is an indicator of operational performance. Because not all
companies use identical calculations, the Company's presentation of
EBITDA may not be comparable to similarly titled measures of other
companies, and should not be viewed as an alternative to measures
of financial performance or changes in cash flows calculated in
accordance with the U.S. GAAP.
Reconciliation of
Net Income to EBITDA
|
(Amounts expressed
in US$)
|
|
|
|
For the Three
Months Ended December 31,
|
($
millions)
|
|
2021
|
|
|
2022
|
Net income
(loss)
|
|
4.16
|
|
|
-11.91
|
Add: Income
tax
|
|
0.60
|
|
|
11.87
|
Net interest
expense
|
|
0.28
|
|
|
0.24
|
Depreciation
and amortization
|
|
3.62
|
|
|
3.57
|
EBITDA
|
|
8.66
|
|
|
3.77
|
Full Year
Ended December 31, 2022 Financial Results
|
|
|
|
For the Twelve
Months Ended December 31,
|
($
millions)
|
|
2021
|
|
2022
|
|
%
Change
|
Revenues
|
|
160.88
|
|
100.35
|
|
-37.62 %
|
Regular
Corrugating Medium Paper ("CMP")*
|
|
111.08
|
|
82.30
|
|
-25.91 %
|
Light-Weight
CMP**
|
|
23.43
|
|
16.43
|
|
-29.89 %
|
Offset Printing
Paper
|
|
17.06
|
|
0
|
|
-100 %
|
Tissue Paper
Products
|
|
8.77
|
|
1.36
|
|
-84.53 %
|
Face
Masks
|
|
0.54
|
|
0.26
|
|
-52.1 %
|
|
|
|
|
|
|
|
Gross
profit
|
|
11.02
|
|
4.75
|
|
-56.9 %
|
Gross profit
(loss) margin
|
|
6.9 %
|
|
4.7 %
|
|
-2.2 pp****
|
Regular
Corrugating Medium Paper ("CMP")*
|
|
6.3 %
|
|
7.4 %
|
|
1.1 pp****
|
Light-Weight
CMP**
|
|
8.7 %
|
|
9.4 %
|
|
0.7 pp****
|
Offset Printing
Paper
|
|
18.2 %
|
|
-
|
|
-
|
Tissue Paper
Products***
|
|
-14.3 %
|
|
-216.3 %
|
|
-202.1
pp****
|
Face
Masks
|
|
19.2 %
|
|
26.1 %
|
|
6.9 pp****
|
|
|
|
|
|
|
|
Operating income
(loss)
|
|
1.46
|
|
-5.30
|
|
-463.5 %
|
Net
income
|
|
0.91
|
|
-16.57
|
|
-1930.0 %
|
EBITDA
|
|
22.94
|
|
10.96
|
|
-52.2 %
|
Basic and Diluted
earnings (loss) per share
|
|
0.10
|
|
-1.66
|
|
-1,760.0 %
|
|
|
|
|
|
|
|
* Products
from PM6
|
|
|
|
|
|
|
** Products
from PM1
|
|
|
|
|
|
|
*** Products
from PM8 and PM9
|
|
|
|
|
|
|
**** pp
represents percentage points
|
|
|
|
|
|
|
Revenue
For the year ended December 31, 2022, total revenue
decreased by $60.5 million, or 37.6%, to approximately
$100.4
million from approximately$160.9 million for 2021.
The decrease in total revenue was mainly due to the decrease in
sales volume of CMP, offset printing paper and tissue paper and the
decrease in ASP of CMP.
The following table summarizes revenue, volume and ASP by
product for the years ended December 31, 2021 and 2022,
respectively:
|
For the Twelve
Months Ended December 31,
|
|
2021
|
|
2022
|
|
Revenue
($'000)
|
|
Volume
(tonne)
|
|
ASP
($/tonne)
|
|
Revenue
($'000)
|
|
Volume
(tonne)
|
|
ASP
($/tonne)
|
Regular
CMP
|
111,079
|
|
213,490
|
|
520
|
|
82,297
|
|
180,977
|
|
455
|
Light-Weight
CMP
|
23,432
|
|
46,201
|
|
507
|
|
16,428
|
|
37,354
|
|
440
|
Offset Printing
Paper
|
17,063
|
|
24,513
|
|
696
|
|
-
|
|
-
|
|
-
|
Tissue Paper
Products
|
8,770
|
|
8,255
|
|
1,062
|
|
1,356
|
|
1,273
|
|
1,065
|
Total
|
160,344
|
|
292,459
|
|
548
|
|
100,082
|
|
219,604
|
|
456
|
|
Revenue
($'000)
|
|
Volume
(thousand pieces)
|
|
ASP
($/thousand pieces)
|
|
Revenue
($'000)
|
|
Volume
($/thousand pieces)
|
|
ASP
($/thousand pieces)
|
Face
Masks
|
538
|
|
12,664
|
|
42
|
|
258
|
|
5,625
|
|
46
|
Revenue from CMP, including both regular CMP and light-Weight
CMP decreased by $35.8 million, or 26.6%,
to approximately $98.7 million,
and accounted for 98.4% of total revenue for the year
ended December 31, 2022, compared to approximately$134.5
million, or 83.6% of total revenue for 2021. The Company sold
218,331tonnes of CMP at an ASP of $452/tonne in the year
ended December 31, 2022, compared to 259,691tonnes at an ASP
of $518/tonne in 2021.
Of the total CMP sales, revenue from regular CMP decreased
by $28.8 million, or 25.9%, to approximately $82.3 million, resulting from sales of 180,977
tonnes at an ASP of $455/tonne during the year
ended December 31, 2022, compared to revenue
of approximately$111.1 million, resulting from sales of
213,490 tonnes at an ASP of $520/tonne for 2021. Revenue from
light-weight CMP decreased by $7.0 million, or 29.9%,
to approximately$16.4 million, resulting from sales of 37,354
tonnes at an ASP of $440/tonne for the year
ended December 31, 2022, compared to revenue
of approximately$23.4million, resulting from sales of
46,201tonnes at an ASP of $507/tonne for 2021.
Revenue from offset printing paper was $nil for the year ended
December 31, 2022 compared to the
revenue of $17.1 for the year ended
December 31, 2021. Due to COVID-19,
our paper production was restricted and production of offset
printing paper was suspended in 2022.
Revenue from tissue paper products decreased by $7.4
million, or 84.5%, to approximately $1.4 million, resulting from sales of 1,273
tonnes at an ASP of $1,065/tonne, for the year
ended December 31, 2022, compared to revenue
of approximately $8.8 million,
resulting from sales of 8,255 tonnes at an ASP of $1,062/tonne
for 2021.
Revenue from face masks decreased by $0.3 million, or
52.1%, to approximately $0.3
million for the year ended December 31, 2022, from
approximately $0.5 million for 2021.
The Company sold 5,625 thousand pieces of face masks for the year
ended December 31, 2022, compared to 12,664 thousand pieces of
face masks for 2021.
Gross Profit and Gross Margin
Total cost of sales decreased by $54.2
million, or 36.1%, to approximately $95.6 million for the year
ended December 31, 2022 from approximately
$149.9 million for 2021. The
decrease in overall cost of sales was mainly due to the decreased
sales volume of CMP and offset printing paper and decreased
material costs of CMP in the year ended December 31,
2022. Costs of sales per tonne for regular CMP, light-weight
CMP, offset printing paper, tissue paper products
were, $421, $398, $nil, and $3,370,
respectively, for the year ended December 31,
2022 compared to $487, $463, $570,
and $1,214, respectively, for 2021.
Total gross profit decreased by $6.3 million, or 56.9%,
to approximately $4.8
million for the year ended December 31,
2022 from approximately $11.0 million for 2021. Overall gross margin
decreased by 2.2 percentage points to 4.7% for the year
ended December 31, 2022 from 6.9% for 2021. Gross margins
for regular CMP, light-weight CMP, offset printing paper, tissue
paper products and face mask products were 7.4%, 9.4%, nil, -216.3%
and 26.1%, respectively, for the year ended December 31, 2022,
compared to 6.3%, 8.7%, 18.2%, 14.3% and 19.2%, respectively, for
2021.
Selling, General and Administrative Expenses
SG&A expenses increased by $0.5 million, or 5.24%,
to approximately $10.1
million for the year ended December 31,
2022 from approximately $9.6 million for 2021. As a percentage of
total revenue, SG&A expenses was 10.0% for the year
ended December 31, 2022, compared to 5.9% for 2021.
Income (Loss) from Operations
Loss from operations decreased by $6.8 million, or 463.5%
to approximately $5.3
million for the year ended December 31, 2022 from
income from operations of approximately $1.5 million for 2021. Operating loss margin
was -5.3% for the year ended December 31, 2022, compared to
operating margin of 0.9% for 2021.
Net Income (Loss)
Net loss decreased by $17.5
million, or 1930.0%, to approximately $16.6 million, or losses per basic and diluted
share of $1.66, for the year ended
December 31, 2022, compared to net
income of approximately $0.9 million,
or earnings per basic and diluted share of $0.10 for 2021.
EBITDA
EBITDA decreased by $12.0 million, or 52.2%,
to approximately $11.0
million for the year ended December 31,
2022 from approximately $22.9 million for 2021.
Note 1: Non-GAAP Financial Measures
In addition to our U.S. GAAP results, this press release
includes a discussion of EBITDA, a non-GAAP financial measure as
defined by the Securities and Exchange Commission ("SEC"). The
Company defines EBITDA as net income before interest, income taxes,
depreciation and amortization. EBITDA is a key measure used by
management to evaluate our results and make strategic decisions.
Management believes this measure is useful to investors because it
is an indicator of operational performance. Because not all
companies use identical calculations, the Company's presentation of
EBITDA may not be comparable to similarly titled measures of other
companies, and should not be viewed as an alternative to measures
of financial performance or changes in cash flows calculated in
accordance with the U.S. GAAP.
Reconciliation of
Net Income to EBITDA
|
(Amounts expressed
in US$)
|
|
|
|
For the Twelve
Months Ended December 31,
|
($
millions)
|
|
2021
|
|
|
2022
|
Net income
(loss)
|
|
0.91
|
|
|
-16.57
|
Add: Income
tax
|
|
5.55
|
|
|
11.71
|
Net interest
expense
|
|
1.12
|
|
|
1.03
|
Depreciation
and amortization
|
|
15.36
|
|
|
14.79
|
EBITDA
|
|
22.94
|
|
|
10.96
|
Cash, Liquidity and Financial Position
As of December 31, 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 loan from credit union)
of approximately $9.5 million, $11.2 million
and $4.2 million, respectively, compared
to approximately $11.2 million, $13.5 million
and $3.0 million, respectively, at the end of 2021.
Net accounts receivable was approximately $0.9 million as of December 31, 2022,
compared to approximately $4.9
million as of December 31, 2021. Net inventory
was approximately $2.9 million as of December 31, 2022,
compared to approximately $5.8
million at the end of 2021. As of December 31, 2022, the
Company had current assets of approximately $47.2 million and current liabilities
of approximately $17.6 million, resulting in a working
capital of approximately $29.6 million. This was compared to current
assets of approximately $55.5 million and current liabilities
of approximately $20.4 million,
resulting in a working capital of approximately $35.1 million at the end of 2021.
Net Cash provided by operating activities
was approximately $10.7 million for the year
ended December 31, 2022, compared to net cash used in
operating activities of approximately $2.4 million for 2021. Net cash used in
investing activities was approximately $10.9 million for the year
ended December 31, 2022, compared to approximately
$25.1 million for 2021. Net cash
used in financing activities was approximately
$0.9 million for the year
ended December 31, 2022, compared to net cash provided by
financing activities of approximately $34.2 million for 2021.
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: https://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.
IT TECH PACKAGING,
INC.
|
CONSOLIDATED BALANCE
SHEETS
|
AS OF DECEMBER 31,
2022 AND 2021
|
|
|
|
December 31,
|
|
|
December 31,
|
|
|
|
2022
|
|
|
2021
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
Assets
|
|
|
|
|
|
|
|
|
Cash and bank
balances
|
|
$
|
9,524,868
|
|
|
$
|
11,201,612
|
|
Accounts receivable
(net of allowance for doubtful accounts of $881,878 and $69,053 as
of December
31, 2022 and December 31, 2021, respectively)
|
|
|
-
|
|
|
|
4,868,934
|
|
Inventories
|
|
|
2,872,622
|
|
|
|
5,844,895
|
|
Prepayments and other
current assets
|
|
|
27,207,127
|
|
|
|
25,796,640
|
|
Due from related
parties
|
|
|
7,561,858
|
|
|
|
7,804,068
|
|
|
|
|
|
|
|
|
|
|
Total current
assets
|
|
|
47,166,475
|
|
|
|
55,516,149
|
|
|
|
|
|
|
|
|
|
|
Prepayment on property,
plant and equipment
|
|
|
1,031,502
|
|
|
|
43,446,210
|
|
Operating lease
right-of-use assets, net
|
|
|
672,722
|
|
|
|
-
|
|
Finance lease
right-of-use assets, net
|
|
|
1,939,970
|
|
|
|
2,286,459
|
|
Property, plant, and
equipment, net
|
|
|
151,569,898
|
|
|
|
126,587,428
|
|
Value-added tax
recoverable
|
|
|
2,066,666
|
|
|
|
2,430,277
|
|
Deferred tax asset
non-current
|
|
|
-
|
|
|
|
11,268,679
|
|
|
|
|
|
|
|
|
|
|
Total
Assets
|
|
$
|
204,447,233
|
|
|
$
|
241,535,202
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
Liabilities
|
|
|
|
|
|
|
|
|
Short-term bank
loans
|
|
$
|
5,598,311
|
|
|
$
|
5,958,561
|
|
Current portion of
long-term loans
|
|
|
4,835,884
|
|
|
|
6,838,465
|
|
Lease
liability
|
|
|
224,497
|
|
|
|
210,161
|
|
Accounts
payable
|
|
|
5,025
|
|
|
|
10,255
|
|
Advance from
customers
|
|
|
-
|
|
|
|
39,694
|
|
Due to related
parties
|
|
|
727,462
|
|
|
|
727,433
|
|
Accrued payroll and
employee benefits
|
|
|
165,986
|
|
|
|
291,206
|
|
Other payables and
accrued liabilities
|
|
|
5,665,558
|
|
|
|
5,250,539
|
|
Income taxes
payable
|
|
|
417,906
|
|
|
|
1,108,038
|
|
|
|
|
|
|
|
|
|
|
Total current
liabilities
|
|
|
17,640,629
|
|
|
|
20,434,352
|
|
|
|
|
|
|
|
|
|
|
Long-term
loans
|
|
|
4,204,118
|
|
|
|
2,980,065
|
|
Deferred gain on
sale-leaseback
|
|
|
52,314
|
|
|
|
155,110
|
|
Lease liability -
non-current
|
|
|
579,997
|
|
|
|
152,233
|
|
Derivative
liability
|
|
|
646,283
|
|
|
|
2,063,534
|
|
|
|
|
|
|
|
|
|
|
Total liabilities
(including amounts of the consolidated VIE without recourse to the
Company of
$16,784,878 and $17,924,475 as of December 31, 2022 and 2021,
respectively)
|
|
|
23,123,341
|
|
|
|
25,785,294
|
|
|
|
|
|
|
|
|
|
|
Commitments and
Contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
Equity
|
|
|
|
|
|
|
|
|
Common stock,
50,000,000 shares authorized, $0.001 par value per share,
10,065,920 and 9,915,920
shares issued and outstanding as of December 31, 2022 and December,
31, 2021, respectively.
|
|
|
10,066
|
|
|
|
9,916
|
|
Additional paid-in
capital
|
|
|
89,172,771
|
|
|
|
89,016,921
|
|
Statutory earnings
reserve
|
|
|
6,080,574
|
|
|
|
6,080,574
|
|
Accumulated other
comprehensive (loss) income
|
|
|
(7,514,540)
|
|
|
|
10,496,168
|
|
Retained
earnings
|
|
|
93,575,021
|
|
|
|
110,146,329
|
|
|
|
|
|
|
|
|
|
|
Total stockholders'
equity
|
|
|
181,323,892
|
|
|
|
215,749,908
|
|
|
|
|
|
|
|
|
|
|
Total Liabilities
and Stockholders' Equity
|
|
$
|
204,447,233
|
|
|
$
|
241,535,202
|
|
IT TECH PACKAGING,
INC.
|
CONSOLIDATED
STATEMENTS OF INCOME (LOSS) AND COMPREHENSIVE INCOME
(LOSS)
|
FOR THE YEARS ENDED
DECEMBER 31, 2022 AND 2021
|
|
|
|
Year
Ended
|
|
|
|
December
31,
|
|
|
|
2022
|
|
|
2021
|
|
|
|
|
|
|
|
|
Revenues
|
|
$
|
100,352,434
|
|
|
$
|
160,881,720
|
|
|
|
|
|
|
|
|
|
|
Cost of
sales
|
|
|
(95,598,238)
|
|
|
|
(149,864,161)
|
|
|
|
|
|
|
|
|
|
|
Gross
Profit
|
|
|
4,754,196
|
|
|
|
11,017,559
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
|
|
(10,058,723)
|
|
|
|
(9,558,190)
|
|
|
|
|
|
|
|
|
|
|
(Loss) Income from
Operations
|
|
|
(5,304,527)
|
|
|
|
1,459,369
|
|
|
|
|
|
|
|
|
|
|
Other Income
(Expense):
|
|
|
|
|
|
|
|
|
Interest
income
|
|
|
24,264
|
|
|
|
38,766
|
|
Subsidy
income
|
|
|
-
|
|
|
|
198,530
|
|
Interest
expense
|
|
|
(1,027,951)
|
|
|
|
(1,124,702)
|
|
Gain on
acquisition
|
|
|
30,994
|
|
|
|
-
|
|
Gain (Loss) on
derivative liability
|
|
|
1,417,251
|
|
|
|
5,880,526
|
|
|
|
|
|
|
|
|
|
|
(Loss) Income before
Income Taxes
|
|
|
(4,859,969)
|
|
|
|
6,452,489
|
|
|
|
|
|
|
|
|
|
|
Provision for Income
Taxes
|
|
|
(11,711,339)
|
|
|
|
(5,546,954)
|
|
|
|
|
|
|
|
|
|
|
Net (Loss)
Income
|
|
|
(16,571,308)
|
|
|
|
905,535
|
|
|
|
|
|
|
|
|
|
|
Other Comprehensive
(Loss) Income
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment
|
|
|
(18,010,708)
|
|
|
|
4,755,448
|
|
|
|
|
|
|
|
|
|
|
Total Comprehensive
(Loss) Income
|
|
$
|
(34,582,016)
|
|
|
$
|
5,660,983
|
|
|
|
|
|
|
|
|
|
|
(Losses) Earnings
Per Share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and Diluted
(Losses) Earnings per Share
|
|
$
|
(1.66)
|
|
|
$
|
0.1
|
0
|
|
|
|
|
|
|
|
|
|
Outstanding – Basic
and Diluted
|
|
|
9,972,788
|
|
|
|
9,133,440
|
|
IT TECH PACKAGING,
INC.
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
FOR THE YEARS ENDED
DECEMBER 31, 2022 AND 2021
|
|
|
|
Year
Ended
|
|
|
|
December
31,
|
|
|
|
2022
|
|
|
2021
|
|
|
|
|
|
|
|
|
Cash Flows from
Operating Activities:
|
|
|
|
|
|
|
Net income
|
|
$
|
(16,571,308)
|
|
|
$
|
905,535
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
14,788,036
|
|
|
|
15,358,452
|
|
(Gain) Loss on
derivative liability
|
|
|
(1,417,251)
|
|
|
|
(5,880,526)
|
|
Gain on
acquisition
|
|
|
(30,992)
|
|
|
|
-
|
|
(Recovery from) for bad
debts
|
|
|
843,779
|
|
|
|
33,480
|
|
Share-based
compensation and expenses
|
|
|
156,000
|
|
|
|
-
|
|
Deferred tax
|
|
|
10,261,104
|
|
|
|
2,730,050
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
|
3,750,196
|
|
|
|
(2,430,495)
|
|
Prepayments and other
current assets
|
|
|
(3,976,010)
|
|
|
|
(8,350,716)
|
|
Inventories
|
|
|
2,554,072
|
|
|
|
(4,531,263)
|
|
Accounts
payable
|
|
|
(4,496)
|
|
|
|
(589,371)
|
|
Advance from
customers
|
|
|
(37,452)
|
|
|
|
(44,366)
|
|
Related
parties
|
|
|
444,291
|
|
|
|
(785,097)
|
|
Accrued payroll and
employee benefits
|
|
|
(103,683)
|
|
|
|
60,334
|
|
Other payables and
accrued liabilities
|
|
|
677,840
|
|
|
|
254,966
|
|
Income taxes
payable
|
|
|
(614,738)
|
|
|
|
832,946
|
|
Net Cash (Used in)
Provided by Operating Activities
|
|
|
10,719,388
|
|
|
|
(2,436,071)
|
|
|
|
|
|
|
|
|
|
|
Cash Flows from
Investing Activities:
|
|
|
|
|
|
|
|
|
Purchases of property,
plant and equipment
|
|
|
(4,534,092)
|
|
|
|
(25,071,372)
|
|
Proceeds from sale of
property, plant and equipment
|
|
|
-
|
|
|
|
-
|
|
Acquisition of
land
|
|
|
(6,364,439)
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
Net Cash Used in
Investing Activities
|
|
|
(10,898,531)
|
|
|
|
(25,071,372)
|
|
|
|
|
|
|
|
|
|
|
Cash Flows from
Financing Activities:
|
|
|
|
|
|
|
|
|
Proceeds from issuance
of shares and warrants, net
|
|
|
-
|
|
|
|
41,837,553
|
|
Proceeds from short
term bank loans
|
|
|
6,214,020
|
|
|
|
5,892,298
|
|
Proceeds from long term
loans
|
|
|
59,195
|
|
|
|
-
|
|
Repayment of bank
loans
|
|
|
(6,071,952)
|
|
|
|
(6,512,703)
|
|
Payment of capital
lease obligation
|
|
|
(206,114)
|
|
|
|
(185,050)
|
|
Loan to a related party
(net)
|
|
|
(874,745)
|
|
|
|
(6,838,274)
|
|
|
|
|
|
|
|
|
|
|
Net Cash Provided by
(Used in) Financing Activities
|
|
|
(879,596)
|
|
|
|
34,193,824
|
|
|
|
|
|
|
|
|
|
|
Effect of Exchange
Rate Changes on Cash and Cash Equivalents
|
|
|
(618,005)
|
|
|
|
372,794
|
|
|
|
|
|
|
|
|
|
|
Net (Decrease)
Increase in Cash and Cash Equivalents
|
|
|
(1,676,744)
|
|
|
|
7,059,175
|
|
|
|
|
|
|
|
|
|
|
Cash, Cash
Equivalents - Beginning of Year
|
|
|
11,201,612
|
|
|
|
4,142,437
|
|
|
|
|
|
|
|
|
|
|
Cash, Cash
Equivalents - End of Year
|
|
$
|
9,524,868
|
|
|
$
|
11,201,612
|
|
|
|
|
|
|
|
|
|
|
Supplemental
Disclosure of Cash Flow Information:
|
|
|
|
|
|
|
|
|
Cash paid for interest,
net of capitalized interest cost
|
|
$
|
320,568
|
|
|
$
|
577,194
|
|
Cash paid for income
taxes
|
|
$
|
2,049,911
|
|
|
$
|
1,970,984
|
|
View original
content:https://www.prnewswire.com/news-releases/it-tech-packaging-inc-announces-fourth-quarter-and-fiscal-year-2022-financial-results-301780565.html
SOURCE IT Tech Packaging, Inc.