IT Tech Packaging(ITP) - 2024 Q2 - Quarterly Results

Revenue Performance - Total revenue for Q2 2024 decreased by 12.56% to approximately $26.25 million, down from$30.02 million in Q2 2023, primarily due to the suspension of offset printing paper and tissue paper production[3] - For the first half of 2024, total revenue decreased by 33.52% to approximately $33.11 million from approximately$49.81 million in the same period last year, largely due to production suspensions[20] - Revenue from Regular Corrugating Medium Paper (CMP) increased slightly by 0.24% to approximately $21.98 million, while Light-Weight CMP revenue decreased by 6.93$4.23 million[7] - Revenue from CMP decreased by 28.18% to approximately $33.04 million for the first half of 2024, accounting for 99.78$27.73 million, with sales of 78,452 tonnes at an ASP of $354/tonne[22] - Light-weight CMP revenue decreased by 30.23$5.31 million, with sales of 15,582 tonnes at an ASP of $340/tonne[22] Profitability - Gross profit increased significantly to approximately$3.27 million, compared to $1.18 million in the same period last year, resulting in a gross profit margin of 12.44$0.55 million, a turnaround from an operating loss of $0.52 million in Q2 2023, with an operating margin of 2.09$3.93 million, an increase from $2.83 million in Q2 2023, indicating improved operational performance[16] - Total gross profit increased to approximately$3.66 million for the first half of 2024, with a gross margin of 11.07%[26] - EBITDA was approximately $3.91 million for the first half of 2024, compared to approximately$4.03 million for the same period last year[29] Losses and Expenses - Net loss narrowed to approximately $0.08 million, or loss per share of$0.01, compared to a net loss of $1.25 million, or loss per share of$0.12, in the same period last year[15] - Net loss was approximately $3.82 million for the first half of 2024, compared to a net loss of approximately$3.99 million for the same period last year[28] - Selling, general and administrative expenses rose by 105.35% to approximately $2.72 million, mainly due to increased depreciation of idle fixed assets during production suspension[12] - Selling, general and administrative expenses increased by 73.31$6.62 million for the first half of 2024[26] - Selling, general, and administrative expenses for the six months ended June 30, 2024, were $(6,618,331), an increase from$(3,818,767) for the same period in 2023[44] Cash and Assets - Cash and bank balances increased to approximately $5.14 million as of June 30, 2024, compared to$3.92 million as of December 31, 2023[32] - Net accounts receivable increased to approximately $2.64 million as of June 30, 2024, compared to$0.58 million as of December 31, 2023[33] - Current assets increased to approximately $33.43 million with working capital of approximately$10.51 million as of June 30, 2024[33] - Cash provided by operating activities for the six months ended June 30, 2024, was $1,346,337, compared to$5,746,719 for the same period in 2023[46] - Cash, cash equivalents, and restricted cash at the end of the period were $6,043,922, compared to$11,980,759 at the end of the same period in 2023[47] Stockholders' Equity - Total stockholders' equity as of June 30, 2024, was $163,454,811, down from$168,336,863 as of December 31, 2023[41] Other Financial Metrics - Interest income for the three months ended June 30, 2024, was $2,807, compared to$53,637 for the same period in 2023, indicating a decline[44] - The company reported a loss per share of $(0.008) for the three months ended June 30, 2024, compared to$(0.12) for the same period in 2023[44] - Total comprehensive loss for the three months ended June 30, 2024, was $(833,897), compared to$(10,317,188) for the same period in 2023, reflecting a substantial decrease[44]