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IT Tech Packaging, Inc. Announces First Quarter 2024 Unaudited Financial Results
ITPIT Tech Packaging(ITP) Prnewswire·2024-05-11 02:22

Financial Performance - Revenue decreased by 65.32% to 6.86millioninQ12024,primarilyduetoproductionsuspensionsofcorrugatingmediumpaper(CMP)andtissuepaperproducts[3][4]−Grossprofitimprovedto6.86 million in Q1 2024, primarily due to production suspensions of corrugating medium paper (CMP) and tissue paper products [3][4] - Gross profit improved to 0.40 million from a loss of 0.28millioninQ12023,withgrossprofitmarginincreasingby7.21percentagepointsto5.810.28 million in Q1 2023, with gross profit margin increasing by 7.21 percentage points to 5.81% [3][7] - Net loss widened to 3.75 million in Q1 2024 from 2.73millioninQ12023,withlosspershareincreasingto2.73 million in Q1 2023, with loss per share increasing to 0.37 from 0.27[3][9]−EBITDAturnednegativeat−0.27 [3][9] - EBITDA turned negative at -0.02 million in Q1 2024 compared to 1.21millioninQ12023[3][11]ProductPerformance−CMPrevenue,includingregularandlight−weight,decreasedby65.041.21 million in Q1 2023 [3][11] Product Performance - CMP revenue, including regular and light-weight, decreased by 65.04% to 6.83 million, accounting for 100% of total revenue in Q1 2024 [5] - Regular CMP revenue fell by 65.08% to 5.75million,withsalesvolumedroppingto15,640tonnesatanASPof5.75 million, with sales volume dropping to 15,640 tonnes at an ASP of 368/tonne [6] - Light-weight CMP revenue declined by 64.83% to 1.08million,withsalesvolumedecreasingto3,030tonnesatanASPof1.08 million, with sales volume decreasing to 3,030 tonnes at an ASP of 355/tonne [6] - Tissue paper products and face masks generated no revenue in Q1 2024 due to production suspensions [6][7] Industry and Market Conditions - Domestic packaging paper faced sluggish demand and price pressures in Q1 2024 [2] - Increased production capacity from industry peers and intensified competition from imported finished products posed challenges [2] - Interest rate hikes added persistent pressure on the industry [2] - China is implementing policies to stimulate the economy and support enterprises, which may improve the packaging paper industry's business environment [2] Operational Strategies - The company plans to optimize raw material structure and minimize purchase prices to ensure production efficiency and consistent quality [2] - Exploration of new products and markets with appropriate price adjustments is underway to capture greater market share [2] - Better control of inventory, working capital, and cash flow is expected to improve the company's operational health [2] Financial Position - Cash and bank balances increased to 4.51millionasofMarch31,2024,from4.51 million as of March 31, 2024, from 3.92 million at the end of 2023 [12] - Short-term debt rose to 9.69million,whilelong−termdebtdecreasedto9.69 million, while long-term debt decreased to 3.24 million [12] - Working capital stood at 5.44millionasofMarch31,2024,downfrom5.44 million as of March 31, 2024, down from 6.94 million at the end of 2023 [13] - Net cash provided by operating activities was 0.62millioninQ12024,significantlylowerthan0.62 million in Q1 2024, significantly lower than 4.81 million in Q1 2023 [14][15]