BAODING, China, March 15,
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
fourth quarter and audited financial results for the
fiscal year ended December 31, 2021.
Mr. Zhenyong Liu, Chairman and
Chief Executive Officer of the Company, commented, "We are pleased
with our performance for the fiscal year 2021, as we demonstrated
excellent revenue growth and improved business efficiencies. In
fiscal year 2021, our business execution was reflected as we
reached approximately $160.88 million
in revenue with an increase of59% year-over-year and approximately
$11.02 million in gross profit with
an increase of 93% year-over-year. In fiscal year 2021, we launched
a series of initiatives to optimize our revenue structure and
diversify our business, which led to a very encouraging results. We
significantly improved our operating and cost efficiency,reducing
our sell, general and administrative expense by 14.3%, while
maintaining the solid growth of overall sales volume and average
selling prices of CMP products and offset printing paper products.
Looking forward, with our dedicated effort and commitment, we
believe our business fundamentals will continue to support our
leading position in the industry and grow in the foreseeable
future."
Fourth Quarter 2021 Financial Results
|
|
For the Three
Months Ended December 31,
|
($
millions)
|
|
2021
|
|
2020
|
|
%
Change
|
Revenues
|
|
45.05
|
|
32.48
|
|
38.7%
|
Regular
Corrugating Medium Paper ("CMP")*
|
|
32.66
|
|
19.68
|
|
66.0%
|
Light-Weight
CMP**
|
|
7.00
|
|
5.24
|
|
33.5%
|
Offset Printing
Paper
|
|
2.97
|
|
4.88
|
|
-39.2%
|
Tissue Paper
Products
|
|
2.28
|
|
2.65
|
|
-14.0%
|
Face
Masks
|
|
0.15
|
|
0.04
|
|
314.5%
|
|
|
|
|
|
|
|
Gross
profit
|
|
4.34
|
|
0.75
|
|
481.8%
|
Gross profit
(loss) margin
|
|
9.6%
|
|
2.3%
|
|
7.3 pp****
|
Regular
Corrugating Medium Paper ("CMP")*
|
|
9.6%
|
|
1.4%
|
|
8.2 pp****
|
Light-Weight
CMP**
|
|
12.2%
|
|
3.9%
|
|
8.3 pp****
|
Offset Printing
Paper
|
|
21.5%
|
|
13.6%
|
|
7.9 pp****
|
Tissue Paper
Products***
|
|
-13.9%
|
|
-15.0%
|
|
1.1 pp****
|
Face
Masks
|
|
25.2%
|
|
5.8%
|
|
19.4
pp****
|
|
|
|
|
|
|
|
Operating
income (loss)
|
|
1.95
|
|
-1.97
|
|
199.0%
|
Net
income
|
|
4.16
|
|
-1.62
|
|
357.0%
|
EBITDA
|
|
8.66
|
|
2.63
|
|
229.3%
|
Basic and
Diluted earnings (loss) per share
|
|
0.07
|
|
-0.06
|
|
216.7%
|
|
|
|
|
|
|
|
* Products
from PM6
|
|
|
|
|
|
|
** Products
from PM1
|
|
|
|
|
|
|
*** Products
from PM8 and PM9
|
|
|
|
|
|
|
**** pp
represents percentage points
|
|
|
|
|
|
|
- Revenue increased by 38.7% to approximately $45.05 million, primarily attributable to an
increase in sales volume of CMP products.
- Gross profit increased by 481.8% to approximately
$4.34 million. Total gross margin
increased by 7.3 percentage point to 9.6%.
- Income from operations was approximately $1.95 million, compared to loss from operations
of approximately $1.97
million for the same period of last year.
- Net income was approximately $4.16
million, or $0.07 per
basic and diluted share, compared to net loss of approximately
$1.62 million, or loss
of $0.06 per basic and diluted share, for the same period
of last year.
- Earnings before interest, taxes, depreciation and amortization
("EBITDA") increased by 229.3% to approximately $8.66 million.
Revenue
For the fourth quarter of 2021, total revenue increased
by approximately $12.6 million,
or 38.7%, to approximately $45.0
million from approximately $32.5 million for the same period of last
year. The increase in total revenue was mainly due to the increase
in sales volume of CMP.
The following table summarizes revenue, volume and ASP by
product for the fourth quarter of 2021 and 2020, respectively:
|
For the
Three Months Ended December 31,
|
|
2021
|
|
2020
|
|
Revenue
($'000)
|
|
Volume
(tonne)
|
|
ASP
($/tonne)
|
|
Revenue
($'000)
|
|
Volume
(tonne)
|
|
ASP
($/tonne)
|
Regular
CMP
|
32,662
|
|
57,410
|
|
569
|
|
19,677
|
|
45,210
|
|
435
|
Light-Weight
CMP
|
6,996
|
|
12,543
|
|
558
|
|
5,242
|
|
12,417
|
|
422
|
Offset Printing
Paper
|
2,967
|
|
3,911
|
|
759
|
|
4,877
|
|
7,895
|
|
618
|
Tissue Paper
Products
|
2,278
|
|
2,292
|
|
994
|
|
2,648
|
|
3,165
|
|
837
|
Total
|
44,903
|
|
76,156
|
|
590
|
|
32,444
|
|
68,687
|
|
472
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
($'000)
|
|
Volume
(thousand
pieces)
|
|
ASP
($/thousand
pieces)
|
|
Revenue
($'000)
|
|
Volume
($/thousand
pieces)
|
|
ASP
($/thousand
pieces)
|
Face
Masks
|
146
|
|
3,014
|
|
49
|
|
35
|
|
445
|
|
79
|
Revenue from CMP, including both regular CMP and light-Weight
CMP, increased by $14.7 million, or 59.1%,
to approximately $39.7
million and accounted for 88.0% of total revenue for the
fourth quarter of 2021, compared to approximately $24.9 million, or 76.7% of total revenue, for the
same period of last year. The Company sold 69,953tonnes of CMP at
an ASP of $567/tonne in the fourth quarter of 2021, compared
to 57,627tonnes at an ASP of $432/tonne in the same period of
last year.
Of the total CMP sales, revenue from regular CMP increased
by approximately $13.0million,
or 66.0%, to approximately $32.7
million, resulting from sales of 57,410tonnes at an ASP
of $569/tonne, during the fourth quarter of 2021, compared to
revenue of approximately $19.7 million, resulting from sales of
45,210 tonnes at an ASP of $435/tonne, for the same period of
last year. Revenue from light-weight CMP increased
by approximately $1.8 million,
or 33.5%, to approximately $7.0
million, resulting from sales of 12,543tonnes at an ASP
of $558/tonne for the fourth quarter of 2021, compared to
revenue of approximately $5.2
million, resulting from sales of 12,417 tonnes at an ASP
of $422/tonne for the same period of last year.
Revenue from offset printing paper decreased
by $1.9million, or 39.2%, to approximately $3.0 million for the fourth quarter of 2021,
from approximately $4.9 million for the same period
of last year. The Company sold 3,911tonnes of offset printing paper
at an ASP of $759/tonne in the fourth quarter of 2021,
compared to 7,895 tonnes at an ASP of $618/tonne in the same
period of last year.
Revenue from tissue paper products decreased by $0.4
million, or 14.0%, to approximately $2.3 million, resulting from sales of 2,292tonnes
at an ASP of $994/tonne, for the fourth quarter of 2021,
compared to revenue of approximately $2.6million, resulting from sales of 3,165tonnes
at an ASP of $837/tonne for the same period of last year.
Revenue from face masks increased by $110,993, or 314.5%,
to approximately $146,282 for the fourth quarter
ended December 31, 2021, from $35,289 for the same period of 2020. The Company
sold 3,014 thousand pieces of face masks for the fourth quarter
ended December 31, 2021, compared to 445 thousand pieces of
face masks for the same period of 2020.
Gross Profit and Gross Margin
Total cost of sales increased by $9.0 million, or 28.3%,
to approximately $40.7
million for the fourth quarter of 2021 from approximately
$31.7 million for the same
period of last year. For paper products, overall cost of sales per
tonne was $533 for the fourth quarter of 2021, compared
to $462 for the same period of last year. The increase in
overall cost of sales was mainly due to the increased manufacturing
overhead costs and increased material costs, specifically higher
average unit purchase costs of recycled paper board and recycled
white scrap paper in the fourth quarter of 2021. Costs of
sales per tonne for regular CMP, light-weight CMP, offset printing
paper, and tissue paper products
were $514, $490, $596 and $1,132, respectively,
for the fourth quarter of 2021, compared
to $429, $406, $534, and $962,
respectively, for the same period of last year.
Total gross profit was approximately $4.3million for the fourth quarter of 2021,
compare to the gross profit of approximately $0.7 million for the same period of last
year as a result of factors described above. Overall gross margin
was 9.6% for the fourth quarter of 2021, compared to 2.3% 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 9.6%, 12.2%, 21.5%, -13.9% and 25.2%,
respectively, for the fourth quarter of 2021, compared to 1.4%,
3.9%, 13.6%, -15.0% and 5.8%, respectively, for the same period of
last year.
Selling, General and Administrative Expenses
Selling, general and administrative expenses ("SG&A")
decreased by $0.3 million, or 12.0%, to approximately
$2.4 million for the fourth
quarter of 2021 from approximately $2.7 million for the same period of last
year.
Income (Loss) from Operations
Income from operations was approximately $2.0 million for the fourth quarter of 2021,
an increase of $4.0 million, or
199.0%, from loss from operations of approximately
$2.0 million for the same period
of last year. Operating margin was 4.3% for the fourth quarter of
2021, compared to operating margin of -6.1% for the same period of
last year.
Net Income (Loss)
Net income was approximately $4.2
million, or $0.07 per basic and diluted share for
the fourth quarter of 2021, representing an increase of
$5.8 million, or 357.0%, from net
loss of approximately $1.6
million, or $0.06 loss per basic and diluted
share, for the same period of last year.
EBITDA
EBITDA was approximately $8.7
million for the fourth quarter of 2021, compared
to approximately $2.6
million for the same period of last year.
Note 1: Non-GAAP Financial Measures
In addition to our U.S. GAAP results, this press release
includes a discussion of EBITDA, a non-GAAP financial measure as
defined by the Securities and Exchange Commission ("SEC"). The
Company defines EBITDA as net income before interest, income taxes,
depreciation and amortization. EBITDA is a key measure used by
management to evaluate our results and make strategic decisions.
Management believes this measure is useful to investors because it
is an indicator of operational performance. Because not all
companies use identical calculations, the Company's presentation of
EBITDA may not be comparable to similarly titled measures of other
companies, and should not be viewed as an alternative to measures
of financial performance or changes in cash flows calculated in
accordance with the U.S. GAAP.
Reconciliation of Net Income to EBITDA
(Amounts expressed in US$)
|
|
|
|
|
|
|
|
For the
Three Months Ended December 31,
|
($
millions)
|
|
2021
|
|
|
2020
|
Net income
(loss)
|
|
4.16
|
|
|
-1.62
|
Add: Income
tax
|
|
0.60
|
|
|
-0.52
|
Net
interest expense
|
|
0.28
|
|
|
0.28
|
Depreciation and amortization
|
|
3.62
|
|
|
4.49
|
EBITDA
|
|
8.66
|
|
|
2.63
|
Full Year Ended December 31, 2021 Financial
Results
|
|
For the
Twelve Months Ended December 31,
|
($
millions)
|
|
2021
|
|
2020
|
|
%
Change
|
Revenues
|
|
160.88
|
|
100.94
|
|
59.4%
|
Regular
Corrugating Medium Paper ("CMP")*
|
|
111.08
|
|
62.32
|
|
78.2%
|
Light-Weight
CMP**
|
|
23.43
|
|
16.84
|
|
39.2%
|
Offset Printing
Paper
|
|
17.06
|
|
12.27
|
|
39.1%
|
Tissue Paper
Products
|
|
8.77
|
|
8.41
|
|
4.2%
|
Face
Masks
|
|
0.54
|
|
1.10
|
|
-51.2%
|
|
|
|
|
|
|
|
Gross
profit
|
|
11.02
|
|
5.70
|
|
93.2%
|
Gross profit
(loss) margin
|
|
6.9%
|
|
5.7%
|
|
1.2 pp****
|
Regular
Corrugating Medium Paper ("CMP")*
|
|
6.3%
|
|
5.4%
|
|
1.0 pp****
|
Light-Weight
CMP**
|
|
8.7%
|
|
8.9%
|
|
-0.2
pp****
|
Offset Printing
Paper
|
|
18.2%
|
|
17.3%
|
|
0.9 pp****
|
Tissue Paper
Products***
|
|
-14.3%
|
|
-21.7%
|
|
7.4 pp****
|
Face
Masks
|
|
19.2 %
|
|
48.1%
|
|
-28.9
pp****
|
|
|
|
|
|
|
|
Operating
income (loss)
|
|
1.46
|
|
-5.46
|
|
126.8%
|
Net
income
|
|
0.91
|
|
-5.55
|
|
116.3%
|
EBITDA
|
|
22.94
|
|
10.16
|
|
125.6%
|
Basic and
Diluted earnings (loss) per share
|
|
0.02
|
|
-0.21
|
|
109.5%
|
|
|
|
|
|
|
|
* Products
from PM6
|
|
|
|
|
|
|
** Products
from PM1
|
|
|
|
|
|
|
*** Products
from PM8 and PM9
|
|
|
|
|
|
|
**** pp
represents percentage points
|
|
|
|
|
|
|
Revenue
For the year ended December 31, 2021, total revenue
increased by $59.9 million, or 59.4%, to approximately
$160.9
million from approximately $100.9 million for 2020. The increase in
total revenue was mainly due to an increase in sales volume of CMP
and offset printing paper and increase in ASPs of CMP, offset
printing paper and tissue paper products, partially offset by the
decrease in sales volume of tissue paper products.
The following table summarizes revenue, volume and ASP by
product for the years ended December 31, 2021 and 2020,
respectively:
|
For the
Twelve Months Ended December 31,
|
|
2021
|
|
2020
|
|
Revenue
($'000)
|
|
Volume
(tonne)
|
|
ASP
($/tonne)
|
|
Revenue
($'000)
|
|
Volume
(tonne)
|
|
ASP
($/tonne)
|
Regular
CMP
|
111,079
|
|
213,490
|
|
520
|
|
62,325
|
|
154,084
|
|
404
|
Light-Weight
CMP
|
23,432
|
|
46,201
|
|
507
|
|
16,836
|
|
42,801
|
|
393
|
Offset Printing
Paper
|
17,063
|
|
24,513
|
|
696
|
|
12,266
|
|
20,358
|
|
603
|
Tissue Paper
Products
|
8,770
|
|
8,255
|
|
1,062
|
|
8,415
|
|
10,088
|
|
834
|
Total
|
160,344
|
|
292,459
|
|
548
|
|
99,841
|
|
227,331
|
|
439
|
|
Revenue
($'000)
|
|
Volume
(thousand
pieces)
|
|
ASP
($/thousand
pieces)
|
|
Revenue
($'000)
|
|
Volume
($/thousand
pieces)
|
|
ASP
($/thousand
pieces)
|
Face
Masks
|
538
|
|
12,664
|
|
42
|
|
1,102
|
|
10,301
|
|
107
|
Revenue from CMP, including both regular CMP and light-Weight
CMP increased by $55.4 million, or69.9%, to approximately
$134.5 million, and accounted for
83.6% of total revenue for the year ended December 31, 2021,
compared to approximately $79.2
million, or 78.4% of total revenue for 2020. The Company
sold 259,691tonnes of CMP at an ASP of $518/tonne in the year
ended December 31, 2021, compared to 196,885tonnes at an ASP
of $402/tonne in 2020.
Of the total CMP sales, revenue from regular CMP increased
by $48.8 million, or 78.2%, to approximately $111.1 million, resulting from sales of
213,490tonnes at an ASP of $520/tonne during the year
ended December 31, 2021, compared to revenue
of approximately $62.3 million,
resulting from sales of 154,084tonnes at an ASP of $404/tonne
for 2020. Revenue from light-weight CMP increased by $6.6
million, or 39.2%, to approximately $23.4million, resulting from sales of
46,201tonnes at an ASP of $507/tonne for the year
ended December 31, 2021, compared to revenue
of approximately $16.8million,
resulting from sales of 42,801tonnes at an ASP of $393/tonne
for 2020.
Revenue from offset printing paper increased by $4.8
million, or 39.1%, to approximately $17.1 million for the year
ended December 31, 2021 from approximately
$12.3 million for 2020. The
Company sold 24,513tonnes of offset printing paper at an ASP
of $696/tonne in the year ended December 31, 2021,
compared to 20,358tonnes at an ASP of $603/tonne in 2020.
Revenue from tissue paper products increased by $0.4
million, or 4.2%, to approximately $8.8
million, resulting from sales of 8,255tonnes at an ASP
of $1,062/tonne, for the year ended December 31, 2021,
compared to revenue of approximately $8.4 million, resulting from sales of
10,088tonnes at an ASP of $834/tonne for 2020.
Revenue from face masks decreased by $0.6 million, or
51.2%, to approximately $0.5
million for the year ended December 31, 2021, from
approximately $1.1 million for 2020.
The Company sold 12,664 thousand pieces of face masks for the year
ended December 31, 2021, compared to 10,301 thousand pieces of
face masks for 2020.
Gross Profit and Gross Margin
Total cost of sales increased by $54.6
million, or 57.4%, to approximately $149.9 million for the year
ended December 31, 2021 from approximately
$95.2 million for 2020. The
increase in overall cost of sales was mainly due to the increased
sales volume of CMP and offset printing paper and increased
material costs in the year ended December 31, 2021.
Costs of sales per tonne for regular CMP, light-weight CMP, offset
printing paper, tissue paper products
were, $487, $463, $570, and $1,214,
respectively, for the year ended December 31,
2021 compared to $383, $358, $498,
and $1,015, respectively, for 2020.
Total gross profit increased by $5.3million, or 93.2%,
to approximately $11.0million for the year
ended December 31, 2021 from approximately
$5.7 million for 2020. Overall
gross margin increased by 1.2percentage points to 6.9% for the year
ended December 31, 2021 from 5.7% for 2020. Gross margins
for regular CMP, light-weight CMP, offset printing paper, tissue
paper products and face mask products were 6.3%, 8.7%, 18.2%,
-14.3% and 19.2%, respectively, for the year ended December
31, 2021, compared to 5.4%, 8.9%, 17.3%, -21.7% and 48.1%,
respectively, for 2020.
Selling, General and Administrative Expenses
SG&A expenses decreased by $1.6 million, or 14.3%,
to approximately $9.6
million for the yearended December 31,
2021 from approximately $11.2 million for 2020. As a percentage of
total revenue, SG&A expenses was 5.9% for the year
ended December 31, 2021, compared to 11.1% for 2020.
Income (Loss) from Operations
Income from operations increased by $6.9 million, or 126.8%
to approximately $1.5
million for the year ended December 31, 2021 from
loss from operations of approximately $5.5 million for 2020. Operating margin was
0.9% for the year ended December 31, 2021, compared to
operating loss margin of 5.4% for 2020.
Net Income (Loss)
Net Income increased by $6.5 million, or 116.3%,
to approximately $0.9 million,
or earnings per basic and diluted share of $0.02, for the year
ended December 31, 2021, compared to net loss
of approximately $5.6 million,
or loss per basic and diluted share of $0.21 for 2020.
EBITDA
EBITDA increased by $12.7million, or 125.6%,
to approximately $22.9
million for the year ended December 31,
2021 from approximately $10.2 million for 2020.
Note 1: Non-GAAP Financial Measures
In addition to our U.S. GAAP results, this press release
includes a discussion of EBITDA, a non-GAAP financial measure as
defined by the Securities and Exchange Commission ("SEC"). The
Company defines EBITDA as net income before interest, income taxes,
depreciation and amortization. EBITDA is a key measure used by
management to evaluate our results and make strategic decisions.
Management believes this measure is useful to investors because it
is an indicator of operational performance. Because not all
companies use identical calculations, the Company's presentation of
EBITDA may not be comparable to similarly titled measures of other
companies, and should not be viewed as an alternative to measures
of financial performance or changes in cash flows calculated in
accordance with the U.S. GAAP.
Reconciliation of Net Income to EBITDA
(Amounts expressed in US$)
|
|
For the
Twelve Months Ended December 31,
|
($
millions)
|
|
2021
|
|
|
2020
|
Net income
(loss)
|
|
0.91
|
|
|
-5.55
|
Add: Income
tax
|
|
5.55
|
|
|
-1.10
|
Net
interest expense
|
|
1.12
|
|
|
1.03
|
Depreciation and amortization
|
|
15.36
|
|
|
15.79
|
EBITDA
|
|
22.94
|
|
|
10.16
|
Cash, Liquidity and Financial Position
As of December 31, 2021, 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 $11.20 million, $13.52 million
and $2.98 million, respectively, compared
to approximately $4.14 million, $12.16 million
and $4.60 million, respectively, at the end of 2020.
Net accounts receivable was approximately $4.87 million as of December 31, 2021,
compared to approximately $2.39 million as of December 31, 2020.
Net inventory was approximately $5.84 million as of December 31, 2021,
compared to approximately $1.23
million at the end of 2020. As of December 31, 2021, the
Company had 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. This was compared to current
assets of approximately $14.91 million and current liabilities
of approximately $18.34million,
resulting in a working capital deficit of approximately
$3.43 million at the end of
2020.
Net cash used in operating activities was approximately
$2.44 million for the year
ended December 31, 2021, compared to net cash provided by
operating activities of approximately $16.14 million for 2020. Net cash used in
investing activities was approximately $25.07 million for the year
ended December 31, 2021, compared to approximately
$20.53 million for 2020. Net
cash provided by financing activities was approximately
$34.19 million for the year
ended December 31, 2021, compared to net cash provided by
financing activities of approximately $2.05 million for 2020.
Recent development
On December 7, 2021, the Company
announced that it has officially started its surgical masks
production after a month of trial production since the end
of November 2021. The Company's surgical masks comply
with China's pharmaceutical industry standard
YY0469-2011.
Earnings Conference Call
The Company's management will host a conference call to discuss
its fourth quarter and fiscal year 2021 financial results
at 8:30 am U.S. Eastern Time on Tuesday, March 15, 2022.
To attend the conference call, please use the information
below.
Conference Topic: IT Tech Packaging Inc. Fourth
Quarter and Fiscal Year 2021 Earnings Conference Call and
Webcast
Date of call: March 15,
2022
Time of call: 8:30 AM Eastern Time (8:30
PM Beijing/Hong Kong Time)
Conference ID: 4898872
To attend the conference call, please register in advance of the
conference using the
link:http://apac.directeventreg.com/registration/event/4898872 to
complete the online registration at least 15 minutes prior to the
start of the call. Upon registering, the conference access
information including participant dial-in numbers, a Direct Event
passcode and a registrant ID will be provided to you via an
email.
This conference call will be broadcast live on the Internet and
can be accessed by all interested parties
at https://edge.media-server.com/mmc/p/57zkixzh. Please access
the link at least 15 minutes prior to the start of the call to
register, download, and install any necessary audio software.
A playback will be available through 11:00 am
ET on March 15, 2022 to 8:59 am
ET on March 23, 2022. To listen, please
dial+1-855-452-5696 if calling from the United States, or
+61-281-990-299 if calling internationally. Use the conference ID
4898872 to access the replay.
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/.
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
Investor Relations
Ascent Investor Relations LLC
Ms. Tina Xiao
Email: tina.xiao@ascent-ir.com
Tel: +1-917-609-0333
IT TECH PACKAGING,
INC.
|
CONSOLIDATED
BALANCE SHEETS
|
AS OF DECEMBER 31,
2021 AND 2020
|
|
|
|
December
31,
|
|
|
December
31,
|
|
|
2021
|
|
|
2020
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
Assets
|
|
|
|
|
|
|
|
Cash and bank
balances
|
|
$
|
11,201,612
|
|
|
$
|
4,142,437
|
Restricted
cash
|
|
|
-
|
|
|
|
-
|
Accounts receivable
(net of allowance for doubtful accounts of
$69,053 and $34,391 as of December 31, 2021 and December 31,
2020, respectively)
|
|
|
4,868,934
|
|
|
|
2,389,057
|
Inventories
|
|
|
5,844,895
|
|
|
|
1,233,801
|
Prepayments and other
current assets
|
|
|
25,796,640
|
|
|
|
7,051,515
|
Due from related
parties
|
|
|
7,804,068
|
|
|
|
92,795
|
|
|
|
|
|
|
|
|
Total current
assets
|
|
|
55,516,149
|
|
|
|
14,909,605
|
|
|
|
|
|
|
|
|
Prepayment on
property, plant and equipment
|
|
|
43,446,210
|
|
|
|
21,149,749
|
Finance lease
right-of-use assets, net
|
|
|
2,286,459
|
|
|
|
2,397,653
|
Property, plant, and
equipment, net
|
|
|
126,587,428
|
|
|
|
145,142,642
|
Value-added tax
recoverable
|
|
|
2,430,277
|
|
|
|
2,566,195
|
Deferred tax asset
non-current
|
|
|
11,268,679
|
|
|
|
13,708,630
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Assets
|
|
$
|
241,535,202
|
|
|
$
|
199,874,474
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
Liabilities
|
|
|
|
|
|
|
|
Short-term bank
loans
|
|
$
|
5,958,561
|
|
|
$
|
6,435,348
|
Current portion of
long-term loans from credit union
|
|
|
6,838,465
|
|
|
|
4,996,245
|
Lease
liability
|
|
|
210,161
|
|
|
|
182,852
|
Accounts
payable
|
|
|
10,255
|
|
|
|
592,391
|
Advance from
customers
|
|
|
39,694
|
|
|
|
82,625
|
Due to related
parties
|
|
|
727,433
|
|
|
|
727,433
|
Accrued payroll and
employee benefits
|
|
|
291,206
|
|
|
|
224,930
|
Other payables and
accrued liabilities
|
|
|
5,250,539
|
|
|
|
4,838,601
|
Income taxes
payable
|
|
|
1,108,038
|
|
|
|
259,649
|
|
|
|
|
|
|
|
|
Total current
liabilities
|
|
|
20,434,352
|
|
|
|
18,340,074
|
|
|
|
|
|
|
|
|
Loans from credit
union
|
|
|
2,980,065
|
|
|
|
4,597,772
|
Deferred gain on
sale-leaseback
|
|
|
155,110
|
|
|
|
387,087
|
Lease liability -
non-current
|
|
|
152,233
|
|
|
|
354,107
|
Derivative
liability
|
|
|
2,063,534
|
|
|
|
1,115,260
|
|
|
|
|
|
|
|
|
Total liabilities
(including amounts of the consolidated VIE without
recourse to the Company of $17,924,475 and $17,950,224 as of
December 31, 2021 and 2020, respectively)
|
|
|
25,785,294
|
|
|
|
24,794,300
|
|
|
|
|
|
|
|
|
Commitments and
Contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
Equity
|
|
|
|
|
|
|
|
Common stock,
500,000,000 shares authorized, $0.001 par value
per share, 99,049,900 and 28,535,816 shares issued and
outstanding
as of December 31, 2021 and December, 31,2020,
respectively
|
|
|
99,050
|
|
|
|
28,536
|
Additional paid-in
capital
|
|
|
88,927,787
|
|
|
|
53,989,548
|
Statutory earnings
reserve
|
|
|
6,080,574
|
|
|
|
6,080,574
|
Accumulated other
comprehensive income
|
|
|
10,496,168
|
|
|
|
5,740,722
|
Retained
earnings
|
|
|
110,146,329
|
|
|
|
109,240,794
|
|
|
|
|
|
|
|
|
Total
stockholders' equity
|
|
|
215,749,908
|
|
|
|
175,080,174
|
|
|
|
|
|
|
|
|
Total Liabilities
and Stockholders' Equity
|
|
$
|
241,535,202
|
|
|
$
|
199,874,474
|
IT TECH PACKAGING,
INC.
|
CONSOLIDATED
STATEMENTS OF INCOME (LOSS) AND COMPREHENSIVE INCOME
(LOSS)
|
FOR THE YEARS
ENDED DECEMBER 31, 2021 AND 2020
|
|
|
|
|
Year
Ended
|
|
|
|
December
31,
|
|
|
|
2021
|
|
2020
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
$
|
160,881,720
|
|
$
|
100,943,269
|
|
|
|
|
|
|
|
|
|
|
Cost of
sales
|
|
|
|
(149,864,161)
|
|
|
(95,241,284)
|
|
|
|
|
|
|
|
|
|
|
Gross
Profit
|
|
|
|
11,017,559
|
|
|
5,701,985
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
|
|
|
(9,558,190)
|
|
|
(11,157,789)
|
|
Gain on acquisition
of a subsidiary
|
|
|
|
-
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
(Loss) from Operations
|
|
|
|
1,459,369
|
|
|
(5,455,804)
|
|
|
|
|
|
|
|
|
|
|
Other Income
(Expense):
|
|
|
|
|
|
|
|
|
Interest
income
|
|
|
|
38,766
|
|
|
32,033
|
|
Subsidy
income
|
|
|
|
198,530
|
|
|
220,478
|
|
Interest
expense
|
|
|
|
(1,124,702)
|
|
|
(1,026,512)
|
|
Gain (Loss) on
derivative liability
|
|
|
|
5,880,526
|
|
|
(426,055)
|
|
|
|
|
|
|
|
|
|
|
Income (Loss)
before Income Taxes
|
|
|
|
6,452,489
|
|
|
(6,655,860)
|
|
|
|
|
|
|
|
|
|
|
Provision for
Income Taxes
|
|
|
|
(5,546,954)
|
|
|
1,101,858
|
|
|
|
|
|
|
|
|
|
|
Net Income
(Loss)
|
|
|
|
905,535
|
|
|
(5,554,002)
|
|
|
|
|
|
|
|
|
|
|
Other
Comprehensive Income (Loss)
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment
|
|
|
|
4,755,446
|
|
|
11,798,259
|
|
|
|
|
|
|
|
|
|
|
Total
Comprehensive Income (Loss)
|
|
|
$
|
5,660,981
|
|
$
|
6,244,257
|
|
|
|
|
|
|
|
|
|
|
Earnings (Losses)
Per Share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and Diluted
Earnings (Losses) per
Share
|
|
|
$
|
0.02
|
|
$
|
(0.21)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Outstanding –
Basic and Diluted
|
|
|
|
59,849,082
|
|
|
26,498,298
|
|
IT TECH PACKAGING,
INC.
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
FOR THE YEARS
ENDED DECEMBER 31, 2021 AND 2020
|
|
|
|
Year
Ended
|
|
|
|
December
31,
|
|
|
|
2021
|
|
|
2020
|
|
|
|
|
|
|
|
|
Cash Flows from
Operating Activities:
|
|
|
|
|
|
|
Net income
|
|
$
|
$905,535
|
|
|
$
|
(5,554,002)
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
15,358,452
|
|
|
|
15,793,854
|
|
(Gain) Loss on
derivative liability
|
|
|
(5,880,526)
|
|
|
|
426,055
|
|
(Recovery from)
Allowance for bad debts
|
|
|
33,480
|
|
|
|
(28,087)
|
|
Share-based
compensation and expenses
|
|
|
-
|
|
|
|
1,256,700
|
|
Deferred
tax
|
|
|
2,730,050
|
|
|
|
(2,364,575)
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
|
(2,430,495)
|
|
|
|
923,429
|
|
Prepayments and other
current assets
|
|
|
(8,350,716)
|
|
|
|
5,301,953
|
|
Inventories
|
|
|
(4,531,263)
|
|
|
|
458,878
|
|
Accounts
payable
|
|
|
(589,371)
|
|
|
|
307,198
|
|
Advance from
customers
|
|
|
(44,366)
|
|
|
|
(21,281)
|
|
Related
parties
|
|
|
(785,097)
|
|
|
|
1,984,619
|
|
Accrued payroll and
employee benefits
|
|
|
60,334
|
|
|
|
(82,516)
|
|
Other payables and
accrued liabilities
|
|
|
254,966
|
|
|
|
(1,105,508)
|
|
Income taxes
payable
|
|
|
832,946
|
|
|
|
(1,153,191)
|
|
Net Cash (Used in)
Provided by Operating Activities
|
|
|
(2,436,071)
|
|
|
|
16,143,526
|
|
|
|
|
|
|
|
|
|
|
Cash Flows from
Investing Activities:
|
|
|
|
|
|
|
|
|
Purchases of
property, plant and equipment
|
|
|
(25,071,372)
|
|
|
|
(21,106,210)
|
|
Proceeds from sale of
property, plant and equipment
|
|
|
-
|
|
|
|
580,206
|
|
|
|
|
|
|
|
|
|
|
Net Cash Used in
Investing Activities
|
|
|
(25,071,372)
|
|
|
|
(20,526,004)
|
|
|
|
|
|
|
|
|
|
|
Cash Flows from
Financing Activities:
|
|
|
|
|
|
|
|
|
Proceeds from
issuance of shares and warrants, net
|
|
|
41,837,553
|
|
|
|
2,273,360
|
|
Proceeds from short
term bank loans
|
|
|
5,892,298
|
|
|
|
6,090,715
|
|
Repayment of bank
loans
|
|
|
(6,512,703)
|
|
|
|
(6,237,217)
|
|
Payment of capital
lease obligation
|
|
|
(185,050)
|
|
|
|
(72,003)
|
|
Loan to a related
party
|
|
|
(6,838,274)
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
Net Cash Provided
by (Used in) Financing Activities
|
|
|
34,193,824
|
|
|
|
2,054,855
|
|
|
|
|
|
|
|
|
|
|
Effect of Exchange
Rate Changes on Cash and Cash Equivalents
|
|
|
372,794
|
|
|
|
632,315
|
|
|
|
|
|
|
|
|
|
|
Net Increase
(Decrease) in Cash and Cash Equivalents
|
|
|
7,059,175
|
|
|
|
(1,695,308)
|
|
|
|
|
|
|
|
|
|
|
Cash, Cash
Equivalents and Restricted Cash - Beginning of Year
|
|
|
4,142,437
|
|
|
|
5,837,745
|
|
|
|
|
|
|
|
|
|
|
Cash, Cash
Equivalents and Restricted Cash - End of Year
|
|
$
|
11,201,612
|
|
|
$
|
4,142,437
|
|
|
|
|
|
|
|
|
|
|
Supplemental
Disclosure of Cash Flow Information:
|
|
|
|
|
|
|
|
|
Cash paid for
interest, net of capitalized interest cost
|
|
$
|
577,194
|
|
|
$
|
592,140
|
|
Cash paid for income
taxes
|
|
$
|
1,970,984
|
|
|
$
|
2,401,191
|
|
|
|
|
|
|
|
|
|
|
Cash and bank
balances
|
|
|
11,201,612
|
|
|
|
4,142,437
|
|
Restricted
cash
|
|
|
-
|
|
|
|
-
|
|
Total cash, cash
equivalents and restricted cash shown in the statement of cash
flows
|
|
|
11,201,612
|
|
|
|
4,142,437
|
|
View original
content:https://www.prnewswire.com/news-releases/it-tech-packaging-inc-announces-fourth-quarter-and-fiscal-year-2021-financial-results-301502675.html
SOURCE IT Tech Packaging, Inc.