BAODING, China, Aug. 9, 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 six and
three months ended June 30, 2022.
Mr. Zhenyong Liu, Chairman and
Chief Executive Officer of the Company, commented, "Despite the
negative impact associated with the resurgence of COVID-19 pandemic
to our business during the second quarter of 2022, we strived to
provide high-quality products to our customers. As business
activities gradually return to normal, we expect to take the
necessary steps to strengthen our business resilience and improve
our competitive advantages to prepare for growth opportunities
ahead. With our dedicated team's effort and our long-term strategy
of exploring growth opportunities in the industry, we remain
confident about our business fundamentals and potential to grow.
Despite the challenging environment, we anticipate to continue to
execute our strategic initiatives, expand our business, and improve
operating efficiency. In addition, we remain focused on improving
our products to meet the evolving demands of our customers and
strengthen our relationship with customers. Looking ahead to the
remainder of 2022 and beyond, we believe we are well positioned to
achieve our growth goals and create long-term values for
shareholders."
Second Quarter 2022 Unaudited Financial Results
|
|
For the Three Months
Ended June 30,
|
($
millions)
|
|
2022
|
|
2021
|
|
%
Change
|
Revenues
|
|
31.79
|
|
46.53
|
|
-31.7 %
|
Regular
Corrugating Medium Paper ("CMP")*
|
|
25.85
|
|
30.25
|
|
-14.5 %
|
Light-Weight
CMP**
|
|
5.44
|
|
6.56
|
|
-17.1 %
|
Offset Printing
Paper
|
|
-
|
|
7.18
|
|
-100.0 %
|
Tissue Paper
Products
|
|
0.41
|
|
2.43
|
|
-83.1 %
|
Face
Masks
|
|
0.09
|
|
0.11
|
|
-19.6 %
|
|
|
|
|
|
|
|
Gross
profit
|
|
0.63
|
|
3.03
|
|
-79.1 %
|
Gross profit
(loss) margin
|
|
2.0 %
|
|
6.5 %
|
|
-4.5 pp****
|
Regular
Corrugating Medium Paper ("CMP")*
|
|
4.3 %
|
|
5.1 %
|
|
-0.8 pp****
|
Light-Weight
CMP**
|
|
6.0 %
|
|
6.7 %
|
|
-0.7 pp****
|
Offset Printing
Paper
|
|
-
|
|
17.7 %
|
|
-17.7 pp****
|
Tissue Paper
Products***
|
|
-198.0 %
|
|
-9.6 %
|
|
-188.4
pp****
|
Face
Masks
|
|
20.8 %
|
|
10.0 %
|
|
10.8 pp****
|
|
|
|
|
|
|
|
Operating income
(loss)
|
|
-1.24
|
|
0.43
|
|
-386.9 %
|
Net
loss
|
|
-0.29
|
|
-0.45
|
|
36.5 %
|
EBITDA
|
|
3.55
|
|
9.03
|
|
-60.7 %
|
Basic and Diluted
loss per share
|
|
-0.003
|
|
-0.01
|
|
70.1 %
|
|
|
|
|
|
|
|
* Products
from PM6
|
|
|
|
|
|
|
** Products
from PM1
|
|
|
|
|
|
|
*** Products
from PM8 and PM9
|
|
|
|
|
|
|
**** pp
represents percentage points
|
|
|
|
|
|
|
- Revenue decreased by 31.7% to approximately $31.79 million, mainly due to the decrease in
sales volume of CMP, offset printing paper and tissue paper
products.
- Gross profit decreased by 79.1% to approximately
$0.63 million. Total gross margin
decreased by 4.5 percentage point to 2.0%.
- Loss from operations was approximately $1.24million, compared to income from operations
of approximately $0.43
million for the same period of last year.
- Net loss was approximately $0.29
million, or loss per share of $0.003, compared to net loss
of approximately $0.45 million,
or loss per share of $0.01, for the
same period of last year.
- Earnings before interest, taxes, depreciation and amortization
("EBITDA") was approximately $3.55million, compared to $9.03 million for
the same period of last year.
Revenue
For the second quarter of 2022, total revenue decreased by
31.7%, to approximately $31.79
million from approximately $46.53 million for the same period of last
year. The decrease in total revenue was mainly due to the decrease
in sales volume of CMP, offset printing paper and tissue paper
products.
The following table summarizes revenue, volume and ASP by
product for the second quarter of 2022 and 2021, respectively:
|
For the Three Months
Ended June 30,
|
|
2022
|
|
2021
|
|
Revenue
($'000)
|
|
Volume
(tonne)
|
|
ASP
($/tonne)
|
|
Revenue
($'000)
|
|
Volume
(tonne)
|
|
ASP
($/tonne)
|
Regular
CMP
|
25,853
|
|
53,943
|
|
479
|
|
30,252
|
|
60,507
|
|
500
|
Light-Weight
CMP
|
5,436
|
|
11,642
|
|
467
|
|
6,561
|
|
13,491
|
|
486
|
Offset Printing
Paper
|
-
|
|
-
|
|
-
|
|
7,184
|
|
10,415
|
|
690
|
Tissue Paper
Products
|
411
|
|
383
|
|
1,074
|
|
2,428
|
|
2,196
|
|
1,106
|
Total
|
31,701
|
|
65,968
|
|
481
|
|
46,426
|
|
86,609
|
|
536
|
|
Revenue
($'000)
|
|
Volume
(thousand
pieces)
|
|
ASP
($/thousand
pieces)
|
|
Revenue
($'000)
|
|
Volume
(thousand
pieces)
|
|
ASP
($/thousand
pieces)
|
Face
Masks
|
88
|
|
3,014
|
|
29
|
|
109
|
|
2,635
|
|
41
|
Revenue from CMP, including both regular CMP and light-Weight
CMP, decreased by 15.0%, to approximately $31.29 million and accounted for 98.4% of
total revenue for the second quarter of 2022, compared
to approximately $36.81million,
or 79.1% of total revenue for the same period of last year. The
Company sold 65,585 tonnes of CMP at an ASP of $477/tonne
in the second quarter of 2022, compared to 73,998 tonnes at an
ASP of $497/tonne in the same period of last year.
Of the total CMP sales, revenue from regular CMP decreased
by 14.5%, to approximately $25.85
million for the second quarter of 2022, compared to revenue
of approximately $30.25 million
for the same period of last year. The Company sold
53,943 tonnes of regular CMP at an ASP
of $479/tonne during the second quarter of 2022, compared to
60,507 tonnes at an ASP of $500/tonne for the same period
of last year. Revenue from light-weight CMP decreased by
17.1%, to approximately $5.44
million for the second quarter of 2022, compared to revenue
of approximately $6.56 million
for the same period of last year. The Company
sold 11,642 tonnes of light-weight CMP at an
ASP of $467/tonne for the second quarter of 2022, compared to
13,491 tonnes at an ASP of $486/tonne for the same period
of last year.
Revenue from offset printing paper was $nil for the second
quarter of 2022, compared to revenue
of approximately $7.18 million for the same period
of last year. The Company sold 10,415 tonnes of offset
printing paper at an ASP of $690/tonne in the second
quarter of 2021.
Revenue from tissue paper products decreased by 83.1%,
to approximately $0.41million
for the second quarter of 2022, from approximately $2.43
million for the same period of last year. The Company sold 383
tonnes of tissue paper products at an ASP of $1,074/tonne
for the second quarter of 2022, compared to 2,196 tonnes at an
ASP of $1,106/tonne for the same period of last year.
Revenue from face masks decreased by 19.6%,
to approximately $0.09
million for the second quarter of 2022, from $0.11 million for the same period of last year.
The Company sold 3,014 thousand pieces of face masks for the second
quarter of 2022, compared to 2,635 thousand pieces of face
masks for the same period of last year.
Gross Profit and Gross Margin
Total cost of sales decreased by 28.4%, to approximately
$31.15 million for the second
quarter of 2022 from approximately $43.51 million for the same period of last
year. The decrease in overall cost of sales was mainly due to the
decrease in sales quantity of regular CMP, offset printing paper
and tissue paper products. Costs of sales per tonne for
regular CMP, light-weight CMP, offset printing paper, and tissue
paper products were $459, $439, $nil
and $3,200, respectively, for the second quarter of 2022,
compared to $475, $454, $567 and $1,211,
respectively, for the same period of last year.
Total gross profit was approximately $0.63 million for the second quarter of
2022, compare to the gross profit of approximately
$3.03 million for the same
period of last year as a result of factors described above. Overall
gross margin was 2.0% for the second quarter of 2022, compared to
6.5% 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 4.3%, 6.0%, nil%,
-198.0% and 20.8%, respectively, for the second quarter of 2022,
compared to 5.1%, 6.7%, 17.7%, -9.6% and 10.0%, respectively, for
the same period of last year.
Selling, General and Administrative Expenses
Selling, general and administrative expenses ("SG&A")
decreased by 28.0%, to approximately $1.87 million for the second quarter of 2022
from approximately $2.60
million for the same period of last year.
Loss from Operations
Loss from operations was approximately $1.24 million for the second quarter of
2022, a decrease of 386.9%, from income from operations
of approximately $0.43
million for the same period of last year. Operating loss
margin was 3.9% for the second quarter of 2022, compared to
operating income margin of 0.9% for the same period of last
year.
Net Loss
Net loss was approximately $0.29
million, or loss per share of $0.003, for the second quarter of 2022, compared
to net loss of approximately $0.45
million, or loss per share of $0.01, for the same period of last year.
EBITDA
EBITDA was approximately $3.55 million for the second quarter of
2022, compared to approximately $9.03 million for the same period of last
year.
Note 1: Non-GAAP Financial Measures
In addition to our U.S. GAAP results, this press release
includes a discussion of EBITDA, a non-GAAP financial measure as
defined by the Securities and Exchange Commission ("SEC"). The
Company defines EBITDA as net income before interest, income taxes,
depreciation and amortization. EBITDA is a key measure used by
management to evaluate our results and make strategic decisions.
Management believes this measure is useful to investors because it
is an indicator of operational performance. Because not all
companies use identical calculations, the Company's presentation of
EBITDA may not be comparable to similarly titled measures of other
companies, and should not be viewed as an alternative to measures
of financial performance or changes in cash flows calculated in
accordance with the U.S. GAAP.
Reconciliation of Net Income to EBITDA
(Amounts expressed in US$)
|
|
|
|
|
|
|
|
For the Three
Months Ended June 30,
|
($
millions)
|
|
2022
|
|
|
2021
|
Net
loss
|
|
-0.29
|
|
|
-0.45
|
Add: Income
tax
|
|
-0..24
|
|
|
5.12
|
Net
interest expense
|
|
0.26
|
|
|
0.28
|
Depreciation and amortization
|
|
3.82
|
|
|
4.07
|
EBITDA
|
|
3.55
|
|
|
9.03
|
First Half of 2022 Unaudited Financial Results
|
|
For the Six Months
Ended June 30,
|
($
millions)
|
|
2022
|
|
2021
|
|
%
Change
|
Revenues
|
|
47.27
|
|
70.74
|
|
-33.2 %
|
Regular
Corrugating Medium Paper ("CMP")*
|
|
38.95
|
|
47.22
|
|
-17.5 %
|
Light-Weight
CMP**
|
|
7.36
|
|
10.31
|
|
-28.6 %
|
Offset Printing
Paper
|
|
-
|
|
9.30
|
|
-100.0 %
|
Tissue Paper
Products
|
|
0.81
|
|
3.68
|
|
-78.0 %
|
Face
Masks
|
|
0.14
|
|
0.24
|
|
-39.8 %
|
|
|
|
|
|
|
|
Gross
profit
|
|
0.94
|
|
4.86
|
|
-80.6 %
|
Gross profit
(loss) margin
|
|
2.0 %
|
|
6.9 %
|
|
-4.9 pp****
|
Regular
Corrugating Medium Paper ("CMP")*
|
|
4.6 %
|
|
6.3 %
|
|
-1.7 pp****
|
Light-Weight
CMP**
|
|
6.5 %
|
|
8.3 %
|
|
-1.8 pp****
|
Offset Printing
Paper
|
|
-
|
|
18.1 %
|
|
-18.1 pp****
|
Tissue Paper
Products***
|
|
-170.2 %
|
|
-18.7 %
|
|
-151.5
pp****
|
Face
Masks
|
|
24.2 %
|
|
14.8 %
|
|
9.4 pp****
|
|
|
|
|
|
|
|
Operating
loss
|
|
-4.19
|
|
-0.29
|
|
-1331.9 %
|
Net
loss
|
|
-2.78
|
|
-4.79
|
|
42.1 %
|
EBITDA
|
|
4.75
|
|
8.96
|
|
-46.9 %
|
Basic and Diluted
loss per share
|
|
-0.03
|
|
-0.10
|
|
72.7 %
|
|
|
|
|
|
|
|
* Products
from PM6
|
|
|
|
|
|
|
** Products
from PM1
|
|
|
|
|
|
|
*** Products
from PM8 and PM9
|
|
|
|
|
|
|
**** pp
represents percentage points
|
|
|
|
|
|
|
Revenue
For the first half of 2022, total revenue decreased by 33.2%, to
approximately $47.27 million from
approximately $70.74 million for the
same period of last year. The decrease in total revenue was mainly
due to the decrease in sales volume of CMP, offset printing paper
and tissue paper products.
The following table summarizes revenue, volume and ASP by
product for the first half of 2022 and 2021, respectively:
|
For the Six Months
Ended June 30,
|
|
2022
|
|
2021
|
|
Revenue
($'000)
|
|
Volume
(tonne)
|
|
ASP
($/tonne)
|
|
Revenue
($'000)
|
|
Volume
(tonne)
|
|
ASP
($/tonne)
|
Regular
CMP
|
38,953
|
|
79,188
|
|
492
|
|
47,216
|
|
94,133
|
|
502
|
Light-Weight
CMP
|
7,364
|
|
15,483
|
|
476
|
|
10,309
|
|
21,161
|
|
487
|
Offset Printing
Paper
|
-
|
|
-
|
|
-
|
|
9,300
|
|
13,557
|
|
686
|
Tissue Paper
Products
|
810
|
|
780
|
|
1,038
|
|
3,680
|
|
3,317
|
|
1,109
|
Total
|
47,126
|
|
95,451
|
|
494
|
|
70,505
|
|
132,168
|
|
533
|
|
Revenue
($'000)
|
|
Volume
(thousand
pieces)
|
|
ASP
($/thousand
pieces)
|
|
Revenue
($'000)
|
|
Volume
(thousand
pieces)
|
|
ASP
($/thousand
pieces)
|
Face
Masks
|
144
|
|
12,664
|
|
11
|
|
239
|
|
6,470
|
|
37
|
Revenue from CMP, including both regular CMP and light-Weight
CMP, decreased by 19.5%, to approximately $46.32 million and accounted for 98.0% of
total revenue for first half of 2022, compared
to approximately $57.53million,
or 81.3% of total revenue for the same period of last year. The
Company sold 94,671 tonnes of CMP at an ASP of $489/tonne
in first half of 2022, compared to 115,294 tonnes at an ASP
of $499/tonne in the same period of last year.
Of the total CMP sales, revenue from regular CMP decreased
by 17.5%, to approximately $38.95
million for first half of 2022, compared to revenue
of approximately $47.22 million
for the same period of last year. The Company sold
79,188 tonnes of regular CMP at an ASP
of $492/tonne during the first half of 2022, compared to
94,133 tonnes at an ASP of $502/tonne for the same period
of last year. Revenue from light-weight CMP decreased by
28.6%, to approximately $7.36
million for the first half of 2022, compared to revenue
of approximately $10.31 million
for the same period of last year. The Company
sold 15,483 tonnes of light-weight CMP at an
ASP of $476/tonne for the first half of 2022, compared to
21,161tonnes at an ASP of $487/tonne for the same period of
last year.
Revenue from offset printing paper was $nil for the first
half of 2022, compared to revenue of approximately $9.30
million for the same period of last year. The Company sold
13,557 tonnes of offset printing paper at an ASP
of $686/tonne in the first half of 2021.
Revenue from tissue paper products decreased by 78.0%,
to approximately $0.81 million for the first half of 2022,
from approximately $3.68 million for the same period
of last year. The Company sold 780 tonnes of tissue paper
products at an ASP of $1,038/tonne for the first half of 2022,
compared to 3,317 tonnes at an ASP of $1,109/tonne for
the same period of last year.
Revenue from face masks decreased by 39.8%,
to approximately $0.14
million for the first half of 2022, from $0.24 million for the same period of last year.
The Company sold 12,664 thousand pieces of face masks for the first
half of 2022, compared to 6,470 thousand pieces of face masks
for the same period of last year.
Gross Profit and Gross Margin
Total cost of sales decreased by 29.7%, to approximately
$46.33 million for the first
half of 2022 from approximately $65.88 million for the same period of last
year. The decrease in overall cost of sales was mainly due to the
decrease in sales quantity of CMP, offset printing paper and tissue
paper products. Costs of sales per tonne for regular CMP,
light-weight CMP, offset printing paper, and tissue paper products
were $469, $445,$nil and $2,805, respectively, for
the first half of 2022, compared to $470, $447, $562 and $1,317,
respectively, for the same period of last year.
Total gross profit was approximately $0.94 million for the first half of 2022,
compare to the gross profit of approximately $4.86 million for the same period of last
year as a result of factors described above. Overall gross margin
was 2.0% for the first half of 2022, compared to 6.9% 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 4.6%, 6.5%, nil%, -170.2% and 24.2%,
respectively, for the first half of 2022, compared to 6.3%,
8.3%, 18.1%, -18.7% and 14.8%, respectively, for the same period of
last year.
Selling, General and Administrative Expenses
Selling, general and administrative expenses ("SG&A")
increased by 0.3%, to approximately $5.17 million for the first half of 2022
from approximately $5.15
million for the same period of last year.
Loss from Operations
Loss from operations was approximately $4.19 million for the first half of 2022, an
increase of 1331.9%, from loss from operations
of approximately $0.29
million for the same period of last year. Operating loss
margin was 8.9% for the first half of 2022, compared to operating
loss margin of 0.4% for the same period of last year.
Net Loss
Net loss was approximately $2.78
million, or loss per share of $0.03, for the first half of 2022, compared to
net loss of approximately $4.79
million, or loss per share of $0.10, for the same period of last year.
EBITDA
EBITDA was approximately $4.75 million for the first half of 2022,
compared to approximately $8.96
million for the same period of last year.
Note 1: Non-GAAP Financial Measures
In addition to our U.S. GAAP results, this press release
includes a discussion of EBITDA, a non-GAAP financial measure as
defined by the Securities and Exchange Commission ("SEC"). The
Company defines EBITDA as net income before interest, income taxes,
depreciation and amortization. EBITDA is a key measure used by
management to evaluate our results and make strategic decisions.
Management believes this measure is useful to investors because it
is an indicator of operational performance. Because not all
companies use identical calculations, the Company's presentation of
EBITDA may not be comparable to similarly titled measures of other
companies, and should not be viewed as an alternative to measures
of financial performance or changes in cash flows calculated in
accordance with the U.S. GAAP.
Reconciliation of Net Income to EBITDA
(Amounts expressed in US$)
|
|
|
|
|
|
|
|
For the Six
Months Ended June 30,
|
($
millions)
|
|
2022
|
|
|
2021
|
Net
loss
|
|
-2.78
|
|
|
-4.79
|
Add: Income
tax
|
|
-0.59
|
|
|
5.02
|
Net
interest expense
|
|
0.53
|
|
|
0.56
|
Depreciation and amortization
|
|
7.59
|
|
|
8.17
|
EBITDA
|
|
4.75
|
|
|
8.96
|
Cash, Liquidity and Financial Position
As of June 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 $14.34million, $11.10million
and $4.92million, 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 $3.82 million as of June 30, 2022,
compared to approximately $4.87 million as
of December 31, 2021. Net inventory was
approximately $6.63 million as of June 30, 2022,
compared to approximately $5.84 million as
of December 31, 2021. As of June 30, 2022, the Company
had current assets of approximately $48.45 million
and current liabilities of approximately $17.33million,
resulting in a working capital
of approximately $31.12 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 $3.95million for the first half of
2022, compared to net cash used in operating activities of
approximately $15.57 million for the same period of last
year. Net cash used in investing activities
was approximately $7.32 million for the first half
of 2022, compared to approximately $0.17 million for
the same period of last year. Net cash provided by financing
activities was approximately $6.67 million for the
first half of 2022, compared to
approximately $41.67 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 and
single-use face masks in North China. Using recycled paper as
its primary raw material (with the exception of its tissue paper
products), ITP produces and distributes three categories of paper
products: corrugating medium paper, offset printing paper and
tissue paper products. With production based in Baoding and Xingtai
in North China's Hebei Province, ITP is located
strategically close to
the Beijing and Tianjin region, home to a
growing base of industrial and manufacturing activities and one of
the largest markets for paper products consumption in the country.
ITP has been listed on the NYSE American since December 2009.
For more information, please
visit: http://www.itpackaging.cn/.
Forward-looking Statement
This release includes "forward-looking statements" within the
meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended.
Forward-looking statements give our current expectations, opinion,
belief or forecasts of future events and performance. A statement
identified by the use of forward-looking words including "will,"
"may," "expects," "projects," "anticipates," "plans," "believes,"
"estimate," "should," and certain of the other foregoing statements
may be deemed forward-looking statements. These forward-looking
statements are subject to a number of risks, uncertainties and
assumptions, including market and other conditions. More detailed
information about the Company and the risk factors that may affect
the realization of forward-looking statements is set forth in the
Company's filings with the SEC. Investors and security holders are
urged to read these documents free of charge on the SEC's web site
at http://www.sec.gov. The Company undertakes no obligation
to update any such forward-looking statements after the date hereof
to conform to actual results or changes in expectations, except as
required by law.
For more information, please contact:
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 JUNE 30, 2022
AND DECEMBER 31, 2021
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
June
30,
|
|
|
December 31,
|
|
|
|
2022
|
|
|
2021
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
Assets
|
|
|
|
|
|
|
Cash and bank
balances
|
|
$
|
14,344,077
|
|
|
$
|
11,201,612
|
|
Restricted
cash
|
|
|
—
|
|
|
|
—
|
|
Accounts receivable
(net of allowance for doubtful accounts of $51,319 and
$69,053 as
of June 30, 2022 and December 31, 2021, respectively)
|
|
|
3,820,123
|
|
|
|
4,868,934
|
|
Inventories
|
|
|
6,629,657
|
|
|
|
5,844,895
|
|
Prepayments and other
current assets
|
|
|
22,807,300
|
|
|
|
25,796,640
|
|
Due from related
parties
|
|
|
844,431
|
|
|
|
7,804,068
|
|
|
|
|
|
|
|
|
|
|
Total current
assets
|
|
|
48,445,588
|
|
|
|
55,516,149
|
|
|
|
|
|
|
|
|
|
|
Prepayment on property,
plant and equipment
|
|
|
—
|
|
|
|
43,446,210
|
|
Finance lease
right-of-use assets, net
|
|
|
2,092,625
|
|
|
|
2,286,459
|
|
Property, plant, and
equipment, net
|
|
|
161,195,384
|
|
|
|
126,587,428
|
|
Value-added tax
recoverable
|
|
|
2,226,703
|
|
|
|
2,430,277
|
|
Deferred tax asset
non-current
|
|
|
11,501,093
|
|
|
|
11,268,679
|
|
|
|
|
|
|
|
|
|
|
Total
Assets
|
|
$
|
225,461,393
|
|
|
$
|
241,535,202
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
Liabilities
|
|
|
|
|
|
|
|
|
Short-term bank
loans
|
|
$
|
5,958,518
|
|
|
$
|
5,958,561
|
|
Current portion of
long-term loans from credit union
|
|
|
4,410,406
|
|
|
|
6,838,465
|
|
Lease
liability
|
|
|
224,219
|
|
|
|
210,161
|
|
Accounts
payable
|
|
|
17,098
|
|
|
|
10,255
|
|
Advance from
customers
|
|
|
37,709
|
|
|
|
39,694
|
|
Due to related
parties
|
|
|
727,433
|
|
|
|
727,433
|
|
Accrued payroll and
employee benefits
|
|
|
228,624
|
|
|
|
291,206
|
|
Other payables and
accrued liabilities
|
|
|
5,507,880
|
|
|
|
5,250,539
|
|
Income taxes
payable
|
|
|
219,307
|
|
|
|
1,108,038
|
|
Total current
liabilities
|
|
|
17,331,194
|
|
|
|
20,434,352
|
|
|
|
|
|
|
|
|
|
|
Loans from credit
union
|
|
|
4,917,007
|
|
|
|
2,980,065
|
|
Deferred gain on
sale-leaseback
|
|
|
100,820
|
|
|
|
155,110
|
|
Lease liability -
non-current
|
|
|
20,299
|
|
|
|
152,233
|
|
Derivative
liability
|
|
|
716,901
|
|
|
|
2,063,534
|
|
Total liabilities
(including amounts of the consolidated VIE without recourse
to the Company of $16,668,603 and $17,924,475 as of
June 30, 2022 and
December 31, 2021, respectively)
|
|
|
23,086,221
|
|
|
|
25,785,294
|
|
|
|
|
|
|
|
|
|
|
Commitments and
Contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
Equity
|
|
|
|
|
|
|
|
|
Common stock,
500,000,000 shares authorized, $0.001 par value per share,
99,049,900 shares issued and outstanding as of June
30, 2022 and
December, 31,2021.
|
|
|
99,050
|
|
|
|
99,050
|
|
Additional paid-in
capital
|
|
|
88,927,787
|
|
|
|
88,927,787
|
|
Statutory earnings
reserve
|
|
|
6,080,574
|
|
|
|
6,080,574
|
|
Accumulated other
comprehensive (loss) income
|
|
|
(102,441)
|
|
|
|
10,496,168
|
|
Retained
earnings
|
|
|
107,370,202
|
|
|
|
110,146,329
|
|
Total stockholders'
equity
|
|
|
202,375,172
|
|
|
|
215,749,908
|
|
Total Liabilities
and Stockholders' Equity
|
|
$
|
225,461,393
|
|
|
$
|
241,535,202
|
|
IT TECH PACKAGING,
INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE
INCOME
|
FOR THE THREE AND
SIX MONTHS ENDED JUNE 30, 2022 AND 2021
|
(Unaudited)
|
|
|
|
Three Months
Ended
|
|
|
Six Months
Ended
|
|
|
|
June
30,
|
|
|
June
30,
|
|
|
|
2022
|
|
|
2021
|
|
|
2022
|
|
|
2021
|
|
Revenues
|
|
$
|
31,788,884
|
|
|
$
|
46,534,915
|
|
|
$
|
47,270,502
|
|
|
$
|
70,744,342
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
sales
|
|
|
(31,154,847)
|
|
|
|
(43,505,895)
|
|
|
|
(46,326,020)
|
|
|
|
(65,884,317)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
Profit
|
|
|
634,037
|
|
|
|
3,029,019
|
|
|
|
944,482
|
|
|
|
4,860,024
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
|
|
(1,869,802)
|
|
|
|
(2,597,611)
|
|
|
|
(5,170,683)
|
|
|
|
(5,152,929)
|
|
Gain on
acquisition
|
|
|
(1,840)
|
|
|
|
—
|
|
|
|
32,163
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) Income from
Operations
|
|
|
(1,237,605)
|
|
|
|
431,408
|
|
|
|
(4,194,038)
|
|
|
|
(292,905)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Income
(Expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
|
4,924
|
|
|
|
11,719
|
|
|
|
8,379
|
|
|
|
16,052
|
|
Subsidy
income
|
|
|
—
|
|
|
|
1,104
|
|
|
|
—
|
|
|
|
197,891
|
|
Interest
expense
|
|
|
(259,106)
|
|
|
|
(283,899)
|
|
|
|
(529,919)
|
|
|
|
(562,800)
|
|
Gain (Loss) on
derivative liability
|
|
|
960,045
|
|
|
|
4,509,007
|
|
|
|
1,346,633
|
|
|
|
872,040
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) Income before
Income Taxes
|
|
|
(531,742)
|
|
|
|
4,669,339
|
|
|
|
(3,368,945)
|
|
|
|
230,278
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for Income
Taxes
|
|
|
243,829
|
|
|
|
(5,122,587)
|
|
|
|
592,818
|
|
|
|
(5,022,382)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Loss
|
|
|
(287,913)
|
|
|
|
(453,248)
|
|
|
|
(2,776,127)
|
|
|
|
(4,792,104)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Comprehensive
(Loss) Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment
|
|
|
(11,524,747)
|
|
|
|
3,416,162
|
|
|
|
(10,598,609)
|
|
|
|
1,947,392
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Comprehensive
(Loss) Income
|
|
$
|
(11,812,660)
|
|
|
$
|
2,962,914
|
|
|
$
|
(13,374,736)
|
|
|
$
|
(2,844,712)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Losses Per
Share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and Diluted
Losses per Share
|
|
$
|
(0.003)
|
|
|
$
|
(0.01)
|
|
|
$
|
(0.03)
|
|
|
$
|
(0.10)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Outstanding – Basic
and Diluted
|
|
|
99,049,900
|
|
|
|
46,638,550
|
|
|
|
99,049,900
|
|
|
|
46,638,550
|
|
IT TECH PACKAGING,
INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
FOR THE SIX MONTHS
ENDED JUNE 30, 2022 AND 2021
|
(Unaudited)
|
|
|
|
Six Months
Ended
|
|
|
|
June
30,
|
|
|
|
2022
|
|
|
2021
|
|
Cash Flows from
Operating Activities:
|
|
|
|
|
|
|
Net income
|
|
$
|
(2,776,127)
|
|
|
$
|
(4,792,104)
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
7,592,319
|
|
|
|
8,166,403
|
|
(Gain) Loss on
derivative liability
|
|
|
(1,346,633)
|
|
|
|
(872,040)
|
|
Gain on
acquisition
|
|
|
(33,178)
|
|
|
|
—
|
|
(Recovery from)
Allowance for bad debts
|
|
|
(14,731)
|
|
|
|
53,074
|
|
Deferred tax
|
|
|
(821,225)
|
|
|
|
3,764,689
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
|
845,450
|
|
|
|
(3,229,340)
|
|
Prepayments and other
current assets
|
|
|
1,963,348
|
|
|
|
(8,060,524)
|
|
Inventories
|
|
|
(1,111,160)
|
|
|
|
(10,412,117)
|
|
Accounts
payable
|
|
|
7,588
|
|
|
|
144,206
|
|
Related
parties
|
|
|
—
|
|
|
|
(860,721)
|
|
Accrued payroll and
employee benefits
|
|
|
(49,534)
|
|
|
|
86,928
|
|
Other payables and
accrued liabilities
|
|
|
553,308
|
|
|
|
15,529
|
|
Income taxes
payable
|
|
|
(859,643)
|
|
|
|
425,654
|
|
Net Cash Provided by
(Used in) Operating Activities
|
|
|
3,949,782
|
|
|
|
(15,570,363)
|
|
|
|
|
|
|
|
|
|
|
Cash Flows from
Investing Activities:
|
|
|
|
|
|
|
|
|
Purchases of property,
plant and equipment
|
|
|
(681,640)
|
|
|
|
(171,541)
|
|
Acquisition of
land
|
|
|
(6,642,665)
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
Net Cash Used in
Investing Activities
|
|
|
(7,324,305)
|
|
|
|
(171,541)
|
|
|
|
|
|
|
|
|
|
|
Cash Flows from
Financing Activities:
|
|
|
|
|
|
|
|
|
Proceeds from issuance
of shares and warrants, net
|
|
|
—
|
|
|
|
41,837,553
|
|
Repayment of bank
loans
|
|
|
—
|
|
|
|
(77,301)
|
|
Payment of capital
lease obligation
|
|
|
(102,902)
|
|
|
|
(88,661)
|
|
Loan repaid by a
related party
|
|
|
6,776,889
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
Net Cash Provided by
Financing Activities
|
|
|
6,673,987
|
|
|
|
41,671,591
|
|
|
|
|
|
|
|
|
|
|
Effect of Exchange
Rate Changes on Cash and Cash Equivalents
|
|
|
(156,999)
|
|
|
|
201,419
|
|
|
|
|
|
|
|
|
|
|
Net Increase in Cash
and Cash Equivalents
|
|
|
3,142,465
|
|
|
|
26,131,106
|
|
|
|
|
|
|
|
|
|
|
Cash, Cash
Equivalents and Restricted Cash - Beginning of
Period
|
|
|
11,201,612
|
|
|
|
4,142,437
|
|
|
|
|
|
|
|
|
|
|
Cash, Cash
Equivalents and Restricted Cash - End of Period
|
|
$
|
14,344,077
|
|
|
$
|
30,273,543
|
|
|
|
|
|
|
|
|
|
|
Supplemental
Disclosure of Cash Flow Information:
|
|
|
|
|
|
|
|
|
Cash paid for interest,
net of capitalized interest cost
|
|
$
|
165,629
|
|
|
$
|
312,344
|
|
Cash paid for income
taxes
|
|
$
|
1,088,049
|
|
|
$
|
265,450
|
|
|
|
|
|
|
|
|
|
|
Cash and bank
balances
|
|
|
14,344,077
|
|
|
|
30,273,543
|
|
Restricted
cash
|
|
|
—
|
|
|
|
—
|
|
Total cash, cash
equivalents and restricted cash shown in the statement of cash
flows
|
|
|
14,344,077
|
|
|
|
30,273,543
|
|
View original
content:https://www.prnewswire.com/news-releases/it-tech-packaging-inc-announces-second-quarter-2022-unaudited-financial-results-301602339.html
SOURCE IT Tech Packaging, Inc.