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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): March 27, 2024

 

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 March 27, 2024, IT Tech Packaging, Inc. (the “Company”) issued a press release announcing its unaudited financial results for the fourth quarter and audited financial results for the fiscal year ending December 31, 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 dated March 27, 2024.
104   Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

1


 

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: March 28, 2024 By: /s/ Zhenyong Liu
    Name: Zhenyong Liu
    Title: Chief Executive Officer

 

 

 

2

 

 

EX-99.1 2 ea020281801ex99-1_ittech.htm PRESS RELEASE DATED MARCH 27, 2024.

Exhibit 99.1

 

IT Tech Packaging, Inc. Announces Fourth Quarter and Fiscal Year 2023 Financial Results

 

BAODING, China, March 27, 2024 /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, 2023.

 

Mr. Zhenyong Liu, Chairman and Chief Executive Officer of the Company, commented, ” In 2023, the company achieved a revenue of $86.55 million and a gross profit of $1.00 million. The overall performance improved due to slightly increased sales volume. Considering current conditions, including supportive policies and the implementation of plastic-restriction-orders, we expect a rise in domestic demand for packaging paper. In the long run, we will focus on acquiring new customers, reducing costs and improving efficiency and ensuring safe and environmentally friendly production. Moreover, we plan to implement flexible pricing and inventory management in line with market trends to maintain cash flow and minimize risks while achieving reasonable profit levels.”

 

Fourth Quarter 2023 Financial Results

 

    For the Three Months Ended December 31,  
($ millions)   2023     2022     % Change  
Revenues     20.96       21.37       -1.91 %
Regular Corrugating Medium Paper (“CMP”)*     17.02       17.28       -1.52 %
Light-Weight CMP**     3.45       3.77       -8.54 %
Offset Printing Paper     -0.01       -       n/a  
Tissue Paper Products     0.47       0.25       87.04 %
Face Masks     0.01       0.06       -80.65 %
Gross profit     0.25       1.03       -75.61 %
Gross profit (loss) margin     1.19 %     4.80 %     -3.61 pp****
Regular Corrugating Medium Paper (“CMP”)*     5.32 %     8.28 %     -2.96 pp****
Light-Weight CMP**     5.50 %     10.28 %     -4.78 pp****
Offset Printing Paper     41.02 %     -       n/a  
Tissue Paper Products***     -182.10 %     -315.16 %     133.06 pp****
Face Masks     -21.19 %     27.47 %     -48.66 pp****
Operating income (loss)     -3.80       -0.49       -673.41 %
Net income (loss)     -3.98       -11.91       -66.54 %
EBITDA     0.11       3.77       -97.08 %
Basic and Diluted earnings (loss) per share     -0.40       -1.19       66.39 %

 

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

 

 


 

Revenue decreased by 1.91% to approximately $20.96 million, primarily attributable to a decrease in the average selling price(“ASP”) of CMP, partially offset by an increase in sales volume of regular CMP, light-weight CMP and offset printing paper.

 

Gross profit decreased by 75.61% to approximately $0.25 million. Total gross margin decreased by 3.61 percentage point to 1.19%.

 

Loss from operations was approximately $3.80 million, compared to $0.49 million for the same period of previous year.

 

Net loss was approximately $3.98 million, or loss of $0.40 per basic and diluted share, compared to $11.91 million, or loss of $1.19 per basic and diluted share, for the same period of previous year.

 

Earnings before interest, taxes, depreciation and amortization (“EBITDA”) decreased by 97.08% to approximately $0.11 million.

 

Revenue

 

For the fourth quarter of 2023, total revenue decreased by approximately $0.41 million, or 1.91%, to approximately $20.96 million from approximately $21.37 million for the same period of previous year. The decrease in total revenue was mainly due to the decrease in ASP of CMP and offset printing paper, partially offset by increase in sales volume of regular CMP, light-weight CMP and offset printing paper.

 

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

 

    For the Quarter Ended December 31,  
    2022     2023  
    Revenue
($’000)
    Volume
(tonne)
    ASP
($/tonne)
    Revenue
($’000)
    Volume
(tonne)
    ASP
($/tonne)
 
Regular CMP     17,281       41,941       412       17,019       46,958       362  
Light-Weight CMP     3,768       9,365       402       3,446       9,847       350  
Offset Printing Paper     -       -       -       -9       -       -  
Tissue Paper Products     253       234       1,083       474       480       987  
Total     21,302       51,540       413       20,929       57,285       365  

 

    Revenue
($’000)
    Volume
(thousand
pieces)
    ASP
($/thousand
pieces)
    Revenue
($’000)
    Volume
($/thousand
pieces)
    ASP
($/thousand
pieces)
 
Face Masks     57       1,330       43       10       360       31  

 

2


 

Revenue from CMP, including both regular CMP and light-Weight CMP, decreased by $0.58 million, or 2.78%, to approximately $20.46 million and accounted for 97.62 % of total revenue for the fourth quarter of 2023, compared to approximately $21.05 million, or 98.49% of total revenue, for the same period of previous year. The Company sold 56,805 tonnes of CMP at an ASP of $360/tonne in the fourth quarter of 2023, compared to 51,306 tonnes at an ASP of $410/tonne in the same period of previous year.

 

Of the total CMP sales, revenue from regular CMP decreased by approximately $0.26 million, or 1.52%, to approximately $17.02 million, resulting from sales of 46,958 tonnes at an ASP of $362/tonne, during the fourth quarter of 2023, compared to revenue of approximately$17.28 million, resulting from sales of 41,941 tonnes at an ASP of $412/tonne, for the same period of previous year. Revenue from light-weight CMP decreased by approximately $0.32 million, or 8.54%, to approximately $3.45 million, resulting from sales of 9,847 tonnes at an ASP of $350/tonne for the fourth quarter of 2023, compared to revenue of approximately $3.77 million, resulting from sales of 9,365 tonnes at an ASP of $402/tonne for the same period of previous year.

 

Revenue from offset printing paper was $nil for the three months ended December 31, 2023 and 2022, respectively.

 

Revenue from tissue paper products increased by $0.22 million, or 87.04%, to approximately $0.47 million, resulting from sales of 480 tonnes at an ASP of $987/tonne, for the fourth quarter of 2023, compared to revenue of approximately$0.25million, resulting from sales of 234 tonnes at an ASP of $1,083/tonne for the same period of previous year.

 

Revenue from face masks decreased by $45,791, or 80.65%, to approximately $10,983  for the fourth quarter ended December 31, 2023, from $56,774 for the same period of 2022. The Company sold 360 thousand pieces of face masks for the fourth quarter ended December 31, 2023, compared to 1,330 thousand pieces of face masks for the same period of 2022.

 

Gross Profit and Gross Margin

 

Total cost of sales increased by $0.37 million, or 1.81%, to approximately $20.71 million for the fourth quarter of 2023 from approximately $20.34 million for the same period of previous year. For paper products, overall cost of sales per tonne was $361 for the fourth quarter of 2023, compared to $394 for the same period of previous year. Costs of sales per tonne for regular CMP, light-weight CMP, offset printing paper, and tissue paper products were $343, $331, $nil and $2,785, respectively, for the fourth quarter of 2023, compared to  $378, $361, $nil and $4,494, respectively, for the same period of previous year.

 

Total gross profit was approximately $0.25 million for the fourth quarter of 2023, compare to the gross profit of approximately $1.03 million for the same period of previous year as a result of factors described above. Overall gross margin was 1.19% for the fourth quarter of 2023, compared to 4.8% for the same period of previous year. Gross profit (loss) margins for regular CMP, light-weight CMP, offset printing paper, tissue paper products and face mask products were 5.32%, 5.50%, 41.02%, -182.10% and -21.19%, respectively, for the fourth quarter of 2023, compared to 8.28%, 10.28%, n/a, -315.16% and 27.47%, respectively, for the same period of previous year.

 

3


 

Selling, General and Administrative Expenses

 

Selling, general and administrative expenses (“SG&A”) increased by $1.86 million, or 122.80%, to approximately $3.38 million for the fourth quarter of 2023 from approximately $1.52 million for the same period of previous year.

 

Income (Loss) from Operations

 

Loss from operations was approximately $3.80 million for the fourth quarter of 2023, an increase of $3.31 million, or 673.41%, from $0.49 million for the same period of previous year. Operating loss margin was 18.13% for the fourth quarter of 2023, 2.30% for the same period of previous year.

 

Net Income (Loss)

 

Net loss was approximately $3.98 million, or $0.40 loss per basic and diluted share for the fourth quarter of 2023, representing a decrease of $7.92 million, or 66.54%, from $11.91 million, or $1.19 loss per basic and diluted share, for the same period of previous year.

 

EBITDA

 

EBITDA was approximately $0.11 million for the fourth quarter of 2023, compared to approximately $3.77 million for the same period of previous 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)   2023     2022  
Net income (loss)     -3.98       -11.91  
Add: Income tax     -0.00       11.87  
Net interest expense     0.22       0.24  
Depreciation and amortization     3.65       3.57  
EBITDA     0.11       3.77  

 

4


 

Full Year Ended December 31, 2023 Financial Results

 

    For the Year Ended December 31,  
($ millions)   2023     2022     % Change  
Revenues     86.55       100.35       -13.76 %
Regular Corrugating Medium Paper (“CMP”)*     67.37       82.30       -18.14 %
Light-Weight CMP**     14.52       16.43       -11.61 %
Offset Printing Paper     3.22       0       n/a  
Tissue Paper Products     1.31       1.36       -3.76 %
Face Masks     0.11       0.26       -58.86 %
Gross profit     1.00       4.75       -78.97 %
Gross profit (loss) margin     1.16 %     4.74 %     -3.58 pp****
Regular Corrugating Medium Paper (“CMP”)*     5.27 %     7.39 %     -2.12 pp****
Light-Weight CMP**     2.59 %     9.42 %     -6.83 pp****
Offset Printing Paper     2.41 %     -       n/a  
Tissue Paper Products***     -230.86 %     -216.34 %     -14.52 pp****
Face Masks     -10.49 %     26.11 %     -36.60 pp****
Operating income (loss)     -9.58       -5.30       -80.52 %
Net income(loss)     -9.95       -16.57       -39.98 %
EBITDA     5.61       10.96       -48.81 %
Basic and Diluted earnings (loss) per share     -0.99       -1.66       40.36 %

 

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

 

Revenue

 

For the year ended December 31, 2023, total revenue decreased by $13.81 million, or 13.76%, to approximately $86.55 million from approximately $100.35 million for 2022. The decrease in total revenue was mainly due to the decrease in average selling price (“ASP”) of CMP, partially offset by increase in sales volume of regular CMP, light-weight CMP and offset printing paper .

 

5


 

The following table summarizes revenue, volume and ASP by product for the years ended December 31, 2023 and 2022, respectively:

 

    For the Year Ended December 31,  
    2022     2023  
    Revenue
($’000)
    Volume
(tonne)
    ASP
($/tonne)
    Revenue
($’000)
    Volume (tonne)     ASP
($/tonne)
 
Regular CMP     82,297       180,977       455       67,371       182,870       368  
Light-Weight CMP     16,428       37,354       440       14,520       40,953       355  
Offset Printing Paper     -       -       -       3,215       5,573       577  
Tissue Paper Products     1,356       1,273       1,065       1,305       1,205       1,083  
Total     100,082       219,604       456       86,412       230,601       375  

 

    Revenue
($’000)
    Volume
(thousand
pieces)
    ASP
($/thousand
pieces)
    Revenue
($’000)
    Volume
($/thousand
pieces)
    ASP
($/thousand
pieces)
 
Face Masks     258       5,625       46       106       3,383       31  

 

Revenue from CMP, including both regular CMP and light-Weight CMP decreased by $16.83 million, or 17.05%, to approximately $81.89 million, and accounted for 94.62% of total revenue for the year ended December 31, 2023, compared to approximately $98.73 million, or 98.38% of total revenue for 2022. The Company sold 223,823 tonnes of CMP at an ASP of $366/tonne in the year ended December 31, 2023, compared to 218,331 tonnes at an ASP of $452/tonne in 2022.

 

Of the total CMP sales, revenue from regular CMP decreased by $14.93 million, or 18.14%, to approximately $67.37 million, resulting from sales of 182,870 tonnes at an ASP of $368/tonne during the year ended December 31, 2023, compared to revenue of approximately $82.30 million, resulting from sales of 180,977 tonnes at an ASP of $455/tonne for 2022. Revenue from light-weight CMP decreased by $1.91 million, or 11.61%, to approximately$14.52 million, resulting from sales of 40,953 tonnes at an ASP of $355/tonne for the year ended December 31, 2023, compared to revenue of approximately $16.43 million, resulting from sales of 37,354 tonnes at an ASP of $440/tonne for 2022.

 

Revenue from offset printing paper was $3.22 for the year ended December 31, 2023. 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 $0.05 million, or 3.76%, to approximately $1.31 million, resulting from sales of 1,205 tonnes at an ASP of $1,083/tonne, for the year ended December 31, 2023, compared to revenue of approximately $1.36 million, resulting from sales of 1,273 tonnes at an ASP of $1,065/tonne for 2022.

 

6


 

Revenue from face masks decreased by $0.15 million, or 58.86%, to approximately $0.11 million for the year ended December 31, 2023, from approximately $0.26 million for 2022. The Company sold 3,383 thousand pieces of face masks for the year ended December 31, 2023, compared to 5,625 thousand pieces of face masks for 2022.

 

Gross Profit and Gross Margin

 

Total cost of sales decreased by $10.05 million, or 10.51%, to approximately $85.55 million for the year ended December 31, 2023 from approximately $95.60 million for 2022. The decrease in overall cost of sales was mainly due to due to the decrease of material costs of CMP in the year ended December 31, 2023.  Costs of sales per tonne for regular CMP, light-weight CMP, offset printing paper, tissue paper products were, $349, $345, $563, and $3,584, respectively, for the year ended December 31, 2023 compared to $421, $398, $nil, and $3,370 respectively, for 2022.

 

Total gross profit decreased by $3.75 million, or 78.97%, to approximately $1.00 million for the year ended December 31, 2023 from approximately $4.75 million for 2022. Overall gross margin decreased by 3.58 percentage points to 1.16% for the year ended December 31, 2023 from 4.74% for 2022. Gross margins for regular CMP, light-weight CMP, offset printing paper, tissue paper products and face mask products were 5.27%, 2.59%, 2.41, -230.86% and -10.49%, respectively, for the year ended December 31, 2023, compared to 7.39%, 9.42%, nil, -216.34% and 26.11%, respectively, for 2022.

 

Selling, General and Administrative Expenses

 

SG&A expenses decreased by $0.98 million, or 9.78%, to approximately $9.08 million for the year ended December 31, 2023 from approximately $10.06 million for 2022. As a percentage of total revenue, SG&A expenses was 10.45% for the year ended December 31, 2023, compared to 10.02% for 2022.

 

Income (Loss) from Operations

 

Loss from operations decreased by $4.27million, or 80.52% to approximately $9.58 million for the year ended December 31, 2023 from $5.30 million for 2022. Operating loss margin was 11.06% for the year ended December 31, 2023, compared to 5.29% for 2022.

 

Net Income (Loss)

 

Net loss increased by $6.63 million, or 39.98%, to approximately $9.95 million, or loss per basic and diluted share of $0.99, for the year ended December 31, 2023, compared to net loss of approximately $16.57 million, or loss per basic and diluted share of $1.66 for 2022.

 

EBITDA

 

EBITDA decreased by $5.35 million, or 48.81%, to approximately $5.61 million for the year ended December 31, 2023 from approximately $10.96 million for 2022.

 

7


 

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 Year Ended
December 31,
 
($ millions)   2023     2022  
Net income (loss)     -9.95       -16.57  
Add: Income tax     0.35       11.71  
Net interest expense     0.98       1.03  
Depreciation and amortization     14.23       14.79  
EBITDA     5.61       10.96  

 

Cash, Liquidity and Financial Position

 

As of December 31, 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 loan from credit union) of approximately $3.92 million, $8.03 million and $4.50 million, respectively, compared to  approximately $9.52 million, $11.16 million and $4.20 million, respectively, at the end of 2022.

 

Net accounts receivable was approximately $0.58 million as of December 31, 2023, compared to  approximately $nil million as of December 31, 2022. Net inventory was approximately $3.56 million as of December 31, 2023, compared to approximately $2.87 million at the end of 2022. As of December 31, 2023, the Company had current assets of approximately $28.36 million and current liabilities of approximately $21.42 million, resulting in a working capital of approximately $6.94 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 at the end of 2022.

 

Net Cash provided by operating activities was approximately $12.87 million for the year ended December 31, 2023, compared to approximately $10.72 million for 2022. Net cash used in investing activities was approximately $22.24 million for the year ended December 31, 2023, compared to approximately $10.90 million for 2022. Net cash provided by financing activities was approximately $4.41 million for the year ended December 31, 2023, compared to net cash used in financing activities of approximately $0.88 million for 2022.

 

8


 

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.

 

For more information, please contact:

 

At the Company
Email: ir@itpackaging.cn 

Tel: +86 0312 8698215

 

9


 

IT TECH PACKAGING, INC.

CONSOLIDATED BALANCE SHEETS

AS OF DECEMBER 31, 2023 AND 2022

 

    December 31,     December 31,  
    2023     2022  
ASSETS            
             
Current Assets            
Cash and bank balances   $ 3,918,938     $ 9,524,868  
Restricted cash     472,983       -  
Accounts receivable (net of allowance for doubtful accounts of $11,745 and $881,878 as of December 31, 2023 and December 31, 2022, respectively)     575,526       -  
Inventories     3,555,235       2,872,622  
Prepayments and other current assets     18,981,290       27,207,127  
Due from related parties     853,929        7,561,858  
                 
Total current assets     28,357,901       47,166,475  
                 
Prepayment on property, plant and equipment     -       1,031,502  
Operating lease right-of-use assets, net     528,648       672,722  
Finance lease right-of-use assets, net     -       1,939,970  
Property, plant, and equipment, net     163,974,022       151,569,898  
Value-added tax recoverable     1,883,078       2,066,666  
Deferred tax asset non-current     -       -  
                 
Total Assets   $ 194,743,649     $ 204,447,233  
                 
LIABILITIES AND STOCKHOLDERS’ EQUITY                
                 
Current Liabilities                
Short-term bank loans   $ 423,567     $ 5,598,311  
Current portion of long-term loans     6,874,497       4,835,884  
Lease liability     100,484       224,497  
Accounts payable     4,991       5,025  
Advance from customers     136,167       -  
Due to related parties     728,869       727,462  
Accrued payroll and employee benefits     237,842       165,986  
Other payables and accrued liabilities     12,912,517       5,665,558  
Income taxes payable     -        417,906  
                 
Total current liabilities     21,418,934       17,640,629  
                 
Long-term loans     4,503,932       4,204,118  
Deferred gain on sale-leaseback     -       52,314  
Lease liability - non-current     483,866       579,997  
Derivative liability     54       646,283  
                 
Total liabilities (including amounts of the consolidated VIE without recourse to the Company of $20,084,995 and $16,784,878 as of December 31, 2023 and 2022, respectively)     26,406,786        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 December 31, 2023 and 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     (10,555,534 )     (7,514,540 )
Retained earnings     83,628,986        93,575,021  
                 
Total stockholders’ equity     168,336,863        181,323,892  
                 
Total Liabilities and Stockholders’ Equity   $ 194,743,649     $ 204,447,233  

 

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IT TECH PACKAGING, INC.

CONSOLIDATED STATEMENTS OF INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS)

FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022

 

    Year Ended  
    December 31,  
    2023     2022  
             
Revenues   $ 86,546,950     $ 100,352,434  
                 
Cost of sales     (85,547,065 )     (95,598,238 )
                 
Gross Profit     999,885       4,754,196  
                 
Selling, general and administrative expenses     (9,075,475 )     (10,058,723 )
(Gain) Loss from disposal and impairment of property, plant and equipment     (1,500,298 )     -  
                 
Loss from Operations     (9,575,888 )     (5,304,527 )
                 
Other Income (Expense):                
Interest income     315,096       24,264  
Interest expense     (984,518 )     (1,027,951 )
Gain on acquisition     -       30,994  
Gain (Loss) on derivative liability     646,229       1,417,251  
                 
Loss before Income Taxes     (9,599,081 )     (4,859,969 )
                 
Provision for Income Taxes     (346,954 )     (11,711,339 )
                 
Net Loss     (9,946,035 )     (16,571,308 )
                 
Other Comprehensive Loss                
Foreign currency translation adjustment     (3,040,994 )     (18,010,708 )
                 
Total Comprehensive Loss   $ (12,987,029 )   $ (34,582,016 )
                 
Losses Per Share:                
                 
Basic and Diluted Losses per Share   $ (0.99 )   $ (1.66 )
                 
Outstanding – Basic and Diluted     10,065,920       9,972,788  

 

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IT TECH PACKAGING, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022

 

    Year Ended  
    December 31,  
    2023     2022  
             
Cash Flows from Operating Activities:            
Net income   $ (9,946,035 )   $ (16,571,308 )
Adjustments to reconcile net income to net cash provided by operating activities:                
Depreciation and amortization     14,225,990       14,788,036  
(Gain) Loss on derivative liability     (646,229 )     (1,417,251 )
(Gain) Loss from disposal and impairment of property, plant and equipment     1,608,542       -  
(Recovery from) Allowance for bad debts     34,193       843,779  
Allowances for inventories, net     2,970       -  
Share-based compensation and expenses     -       156,000  
Gain on acquisition     -       (30,992 )
Deferred tax     -       10,261,104  
Changes in operating assets and liabilities:                
Accounts receivable     280,970       3,750,196  
Prepayments and other current assets     9,322,532       (3,976,010 )
Inventories     (736,267 )     2,554,072  
Accounts payable     50       (4,496 )
Advance from customers     136,686       (37,452 )
Related parties     (478,025 )     444,291  
Accrued payroll and employee benefits     74,908       (103,683 )
Other payables and accrued liabilities     (596,695 )     677,840  
Income taxes payable     (412,504 )     (614,738 )
Net Cash Provided by Operating Activities      12,871,086        10,719,388  
                 
Cash Flows from Investing Activities:                
Purchases of property, plant and equipment     (22,292,870 )     (4,534,092 )
Proceeds from sale of property, plant and equipment     53,573       -  
Acquisition of land     -       (6,364,439 )
                 
Net Cash Used in Investing Activities      (22,239,297)        (10,898,531)  
                 
Cash Flows from Financing Activities:                
Proceeds from issuance of shares and warrants, net     -       -  
Proceeds from short term bank loans     1,275,546       6,214,020  
Proceeds from long term loans     3,769,948       59,195  
Repayment of bank loans     (7,647,610 )     (6,071,952 )
Payment of capital lease obligation     (74,154 )     (206,114 )
Loan to a related party (net)     7,086,369       (874,745 )
                 
Net Cash Provided by (Used in) Financing Activities      4,410,099        (879,596)  
                 
Effect of Exchange Rate Changes on Cash and Cash Equivalents      (174,835)        (618,005)  
                 
Net Decrease in Cash and Cash Equivalents     (5,132,947 )     (1,676,744 )
                 
Cash, Cash Equivalents and Restricted Cash - Beginning of Year      9,524,868        11,201,612  
                 
Cash, Cash Equivalents and Restricted Cash - End of Year   $ 4,391,921     $ 9,524,868  
                 
Supplemental Disclosure of Cash Flow Information:                
Cash paid for interest, net of capitalized interest cost   $ 1,484,461     $ 320,568  
Cash paid for income taxes   $ 759,458     $ 2,049,911  
                 
Cash and bank balances     3,918,938       9,524,868  
Restricted cash     472,983       -  
Total cash, cash equivalents and restricted cash shown in the statement of cash flows     4,391,921       9,524,868  

 

 

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