IT Tech Packaging, Inc. Announces Fourth Quarter and Fiscal Year 2023 Financial Results
Mr.
Fourth Quarter 202 3 Financial Results
|
|
For the Three Months Ended |
||||
($ 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
$0.11 million .
Revenue
For the fourth quarter of 2023, total revenue decreased by approximately
The following table summarizes revenue, volume and ASP by product for the fourth quarter of 2023 and 2022, respectively:
|
For the
Quarter
Ended |
||||||||||
|
2022 |
|
2023 |
||||||||
|
Revenue |
|
Volume |
|
ASP ($/tonne) |
|
Revenue |
|
Volume |
|
ASP |
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 |
|
Volume |
|
ASP |
|
Revenue |
|
Volume |
|
ASP |
Face Masks |
57 |
|
1,330 |
|
43 |
|
10 |
|
360 |
|
31 |
Revenue from CMP, including both regular CMP and light-Weight CMP, decreased by $0.58 million, or 2.78%, to approximately
Of the total CMP sales, revenue from regular CMP decreased by approximately
Revenue from offset printing paper was $nil for the three months ended
Revenue from tissue paper products increased by $0.22 million, or 87.04%, to approximately
Revenue from face masks decreased by $45,791, or 80.65%, to approximately
Gross Profit and Gross Margin
Total cost of sales increased by $0.37 million, or 1.81%, to approximately
Total gross profit was approximately
Selling, General and Administrative Expenses
Selling, general and administrative expenses ("SG&A") increased by $1.86 million, or 122.80%, to approximately
Income (Loss) from Operations
Loss from operations was approximately
Net Income (Loss)
Net loss was approximately
EBITDA
EBITDA was approximately
Note 1: Non-GAAP Financial Measures
In addition to our
Reconciliation of Net Income to EBITDA
(Amounts expressed in US$)
|
|
|
|
|
|
|
|
For the Three Months Ended |
|||
($ 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 |
Full Year Ended
|
|
For the
Year
Ended |
||||
($ 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 $13.81 million, or 13.76%, to approximately
The following table summarizes revenue, volume and ASP by product for the years ended December 31, 2023 and 2022, respectively:
|
For the
Year
Ended |
||||||||||
|
2022 |
|
2023 |
||||||||
|
Revenue |
|
Volume |
|
ASP ($/tonne) |
|
Revenue |
|
Volume |
|
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 |
|
Volume |
|
ASP |
|
Revenue |
|
Volume |
|
ASP |
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
Of the total CMP sales, revenue from regular CMP decreased by $14.93 million, or 18.14%, to approximately
Revenue from offset printing paper was
Revenue from tissue paper products decreased by $0.05 million, or 3.76%, to approximately
Revenue from face masks decreased by $0.15 million, or 58.86%, to approximately
Gross Profit and Gross Margin
Total cost of sales decreased by
Total gross profit decreased by $3.75 million, or 78.97%, to approximately
Selling, General and Administrative Expenses
SG&A expenses decreased by $0.98 million, or 9.78%, to approximately
Income (Loss) from Operations
Loss from operations decreased by $4.27million, or 80.52% to approximately
Net Income (Loss)
Net loss increased by $6.63 million, or 39.98%, to approximately
EBITDA
EBITDA decreased by $5.35 million, or 48.81%, to approximately
Note 1: Non-GAAP Financial Measures
In addition to our
Reconciliation of Net Income to EBITDA
(Amounts expressed in US$)
|
|
For the
Year
Ended |
|||
($ 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
Net accounts receivable was approximately
About
Founded in 1996,
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
For more information, please contact:
At the Company
Email: ir@itpackaging.cn
Tel: +86 0312 8698215
CONSOLIDATED BALANCE SHEETS
AS OF |
|||||||
|
|||||||
|
|
|
|
|
|
||
|
|
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 |
|
|
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 |
|
|
26,406,786 |
|
|
|
23,123,341 |
|
|
|
|
|
|
|
|
Commitments and Contingencies |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' Equity |
|
|
|
|
|
|
|
Common stock, 50,000,000 shares authorized, |
|
|
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 |
CONSOLIDATED STATEMENTS OF INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS)
FOR THE YEARS ENDED |
|||||||
|
|||||||
|
|
|
Year Ended |
||||
|
|
|
|
||||
|
|
|
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 |
|
|
|
(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 |
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED |
||||||
|
||||||
|
|
Year Ended |
||||
|
|
|
||||
|
|
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 |
|
|
|
|
|
|
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) |
|
|
|
|
|
|
|
|
|
|
(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) |
|
|
|
|
|
|
|
|
|
|
(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 |
|
|
4,391,921 |
|
|
9,524,868 |
View original content:https://www.prnewswire.com/news-releases/it-tech-packaging-inc-announces-fourth-quarter-and-fiscal-year-2023-financial-results-302101339.html
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