EX-99.1 2 ea168385ex99-1_ittechpack.htm PRESS RELEASE DATED NOVEMBER 10, 2022

Exhibit 99.1

 

IT Tech Packaging, Inc. Announces Third Quarter 2022 Unaudited Financial Results

 

BAODING, China, Nov.10,2022 /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 three and nine months ended September 30, 2022.

 

Mr. Zhenyong Liu, Chairman and Chief Executive Officer of the Company, commented, “Due to the sporadic situation of COVID-19 in China, the operation of our factory facilities is highly restricted during the three months ended September 30, 2022. However, we still achieved a positive profit year-on-year growth rate of 53% despite facing a volatile commodity price environment impacting our operating costs and the COVID-19 pandemic lockout policies limiting our factory facilities operations. On the strategic front, we continued to deliver high-quality products to our customers, strengthen our business operation, optimize the product portfolio, and seek significant economic benefits. Consistent with our stated strategy, we continued to utilize excess cash flow in a balanced way to make investments in our long-term strategic growth initiatives and to further strengthen the balance sheet. Looking forward, we are committed to creating value for its customers, employees, shareholders, partners, industry, and society by seizing new opportunities and diversifying businesses.”

 

Third Quarter 2022 Unaudited Financial Results

 

   For the Three Months Ended September 30, 
($ millions)  2022   2021   % Change 
Revenues   31.71    45.09    -29.7%
Regular Corrugating Medium Paper (“CMP”)*   26.06    31.20    -16.5%
Light-Weight CMP**   5.30    6.13    -13.6%
Offset Printing Paper   -    4.80    -100.0%
Tissue Paper Products   0.29    2.81    -89.6%
Face Masks   0.06    0.15    -62.6%
                
Gross profit   2.78    1.82    52.8%
Gross profit (loss) margin   8.8%   4.0%   4.8 pp****
Regular Corrugating Medium Paper (“CMP”)*   10.9%   2.9%   8.0 pp****
Light-Weight CMP**   12.8%   5.6%   7.2 pp****
Offset Printing Paper   -    16.2%   -16.2 pp****
Tissue Paper Products***   -258.5%   -8.7%   -249.8 pp****
Face Masks   29.6%   20.4%   9.2 pp****
Operating loss   -0.59    -0.20    -197.3%
Net income (loss)   -1.89    1.54    -222.3%
EBITDA   2.43    5.32    -54.4%
Basic and Diluted loss per share   -0.03    0.03    -200.0%

 

*Products from PM6
**Products from PM1
***Products from PM8 and PM9
****pp represents percentage points

 

·Revenue decreased by 29.7% to approximately $31.71 million, mainly due to the decrease in sales volume of CMP, offset printing paper and tissue paper products.
   
·Gross profit increased by 52.8% to approximately $2.78 million. Total gross margin increased by 4.8 percentage point to 8.8%.  
   
·Loss from operations was approximately $0.59 million, compared to loss from operations of approximately $0.20 million for the same period of last year.
   
·Net loss was approximately $1.89 million, or loss per share of $0.03, compared to net income of approximately $1.54 million, or earnings per share of $0.03, for the same period of last year.
   
·Earnings before interest, taxes, depreciation and amortization (“EBITDA”) was approximately $2.43 million, compared to$5.32 million for the same period of last year.

 

 

 

 

Revenue

 

For the third quarter of 2022, total revenue decreased by 29.7%, to approximately $31.71 million from approximately $45.09 million for the same period of last year. This was mainly due to the decrease in sales volume of regular CMP, offset printing paper and tissue paper products.

 

The following table summarizes revenue, volume and ASP by product for the third quarter of 2022 and 2021, respectively:

 

   For the Three Months Ended September 30, 
   2022   2021 
   Revenue
($’000)		   Volume
(tonne)		   ASP
($/tonne)		   Revenue
($’000)		   Volume
(tonne)		   ASP
($/tonne)		 
Regular CMP   26,063    59,848    435    31,201    61,947    504 
Light-Weight CMP   5,296    12,507    423    6,127    12,497    490 
Offset Printing Paper   -    -    -    4,795    7,045    681 
Tissue Paper Products   293    260    1,128    2,812    2,646    1,063 
Total   31,652    72,615    436    44,935    84,135    534 

 

   Revenue
($’000)		   Volume
(thousand
pieces)		   ASP
($/thousand
pieces)		   Revenue
($’000)		   Volume
(thousand
pieces)		   ASP
($/thousand
pieces)		 
Face Masks   57    1,282    44    152    3,180    48 

 

Revenue from CMP, including both regular CMP and light-Weight CMP, decreased by 16.0%, to approximately $31.36 million and accounted for 98.9% of total revenue for the third quarter of 2022, compared to approximately $37.33million, or 82.8% of total revenue for the same period of last year. The Company sold 72,355 tonnes of CMP at an ASP of $433/tonne in the third quarter of 2022, compared to 74,444 tonnes at an ASP of $501/tonne in the same period of last year.

 

Of the total CMP sales, revenue from regular CMP decreased by 16.5%, to approximately $26.06 million for the third quarter of 2022, compared to revenue of approximately $31.20 million for the same period of last year. The Company sold 59,848 tonnesof regular CMP at an ASP of $435/tonne during the third quarter of 2022, compared to 61,947 tonnes at an ASP of $504/tonne for the same period of last year. Revenue from light-weight CMP decreased by 13.6%, to approximately $5.30 million for the third quarter of 2022, compared to revenue of approximately $6.13 million for the same period of last year. The Company sold 12,507 tonnes of light-weight CMP at an ASP of $423/tonne for the third quarter of 2022, compared to 12,497 tonnes at an ASP of $490/tonne for the same period of last year.

 

Revenue from offset printing paper was $nil for the third quarter of 2022, compared to revenue of approximately $4.80 million for the same period of last year.

 

Revenue from tissue paper products decreased by 89.6%, to approximately $0.29 million for the third quarter of 2022, from approximately $2.81 million for the same period of last year. The Company sold 260tonnesof tissue paper products at an ASP of $1,128/tonne for the third quarter of 2022, compared to 2,646 tonnes at an ASP of $1,063/tonne for the same period of last year.

 

Revenue from face masks decreased by 62.6%, to approximately $0.06 million for the third quarter of 2022, from $0.15 million for the same period of last year. The Company sold 1,282 thousand pieces of face masks for the third quarter of 2022, compared to3,180 thousand pieces of face masks for the same period of last year.

 

2

 

 

Gross Profit and Gross Margin

 

Total cost of sales decreased by 33.1%, to approximately $28.93 million for the third quarter of 2022 from approximately $43.27 million for the same period of last year. This was mainly due to the decrease in sales quantity of regular CMP, offset printing paper and tissue paper products, and the decrease in material costs of CMP. Costs of sales per tonne for regular CMP, light-weight CMP, offset printing paper, and   tissue   paper   products were $388, $369,$nil and $4,042, respectively, for the third quarter of 2022, compared to $489, $463, $570 and $1,155, respectively, for the same period of last year.

 

Total gross profit was approximately $2.78 million for the third quarter of 2022, compared to the gross profit of approximately $1.82 million for the same period of last year as a result of factors described above. Overall gross margin was 8.8% for the third quarter of 2022, compared to 4.0% 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 10.9%, 12.8%, nil%, -258.5% and 29.6%, respectively, for the third quarter of 2022, compared to 2.9%, 5.6%, 16.2%, -8.7% and 20.4%, respectively, for the same period of last year.

 

Selling, General and Administrative Expenses

 

Selling, general and administrative expenses (“SG&A”) increased by 66.9%, to approximately $3.37 million for the third quarter of 2022 from approximately $2.02million for the same period of last year.

 

Loss from Operations

 

Loss from operations was approximately $0.59 million for the third quarter of 2022, a decrease of 197.3%, from loss from operations of approximately $0.20 million for the same period of last year. Operating loss margin was 1.9% for the third quarter of 2022, compared to operating loss margin of 0.4% for the same period of last year.

 

Net Loss

 

Net loss was approximately $1.89 million, or loss per share of $0.03, for the third quarter of 2022, compared to net income of approximately $1.54 million, or earnings per share of $0.03, for the same period of last year.

 

EBITDA

 

EBITDA was approximately $2.43 million for the third quarter of 2022, compared to approximately $5.32 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.

 

3

 

 

Reconciliation of Net Income to EBITDA

 

(Amounts expressed in US$)

 

   For the Three Months Ended
September 30,		 
($ millions)  2022   2021 
Net income (loss)   -1.89    1.54 
Add: Income tax   0.43    -0.07 
Net interest expense   0.26    0.28 
Depreciation and amortization   3.63    3.57 
EBITDA   2.43    5.32 

 

Nine Months Ended September 30, 2022 Unaudited Financial Results

 

   For the Nine Months Ended September 30, 
($ millions)  2022   2021   % Change 
Revenues   78.98    115.83    -31.8%
Regular Corrugating Medium Paper (“CMP”)*   65.02    78.42    -17.1%
Light-Weight CMP**   12.66    16.44    -23.0%
Offset Printing Paper   -    14.10    -100.0%
Tissue Paper Products   1.10    6.49    -83.0%
Face Masks   0.20    0.39    -48.7%
                
Gross profit   3.73    6.68    -44.2%
Gross profit (loss) margin   4.7%   5.8%   -1.1 pp****
Regular Corrugating Medium Paper (“CMP”)*   7.2%   5.0%   2.2 pp****
Light-Weight CMP**   9.2%   7.3%   1.9 pp****
Offset Printing Paper   -    17.5%   -17.5 pp****
Tissue Paper Products***   -193.6%   -14.4%   -179.2 pp****
Face Masks   25.7%   17.0%   8.7 pp****
Operating loss   -4.78    -0.49    -874.2%
Net loss   -4.66    -3.25    -43.5%
EBITDA   7.18    2.69    166.91%
Basic and Diluted loss per share   -0.07    -0.06    -16.7%

 

*Products from PM6
**Products from PM1
***Products from PM8 and PM9
****pp represents percentage points

 

4

 

 

Revenue

 

For the nine months ended September 30, 2022, total revenue decreased by 31.8%, to approximately $78.98million from approximately $115.83 million for the same period of last year. This was mainly due to the decrease in sales volume of corrugating medium paper (“CMP”) and offset printing paper and tissue paper products. The following table summarizes revenue, volume and ASP by product for the nine months ended September 30, 2022 and 2021, respectively:

 

   For the Nine Months Ended September 30, 
   2022   2021 
   Revenue
($’000)		   Volume
(tonne)		   ASP
($/tonne)		   Revenue
($’000)		   Volume
(tonne)		   ASP
($/tonne)		 
Regular CMP   65,015    139,036    468    78,417    156,080    502 
Light-Weight CMP   12,660    27,990    452    16,437    33,658    488 
Offset Printing Paper   -    -    -    14,095    20,602    684 
Tissue Paper Products   1,103    1,040    1,061    6,491    5,963    1,089 
Total   78,778    168,066    469    115,440    216,303    534 

 

   Revenue
($’000)		   Volume
(thousand
pieces)		   ASP
($/thousand
pieces)		   Revenue
($’000)		   Volume
(thousand
pieces)		   ASP
($/thousand
pieces)		 
Face Masks   201    4,295    47    392    9,650    41 

 

Revenue from CMP, including both regular CMP and light-Weight CMP, decreased by 18.1%, to approximately $77.68 million and accounted for 98.3% of total revenue for nine months ended September 30, 2022, compared to approximately $94.85 million, or 81.9% of total revenue for the same period of last year. The Company sold 167,026tonnes of CMP at an ASP of $465/tonne in nine months ended September 30, 2022, compared to 189,738 tonnes at an ASP of $500/tonne in the same period of last year.

 

Of the total CMP sales, revenue from regular CMP decreased by 17.1%, to approximately $65.02 million for nine months ended September 30, 2022, compared to revenue of approximately $78.42million for the same period of last year. The Company sold 139,036tonnesof regular CMP at an ASP of $468/tonne during the nine months ended September 30, 2022, compared to 156,080 tonnes at an ASP of $502/tonne for the same period of last year. Revenue from light-weight CMP decreased by 23.0%, to approximately $12.66 million for the nine months ended September 30, 2022, compared to revenue of approximately $16.44 million for the same period of last year. The Company sold 27,990 tonnes of light-weight CMP at an ASP of $452/tonne for the nine months ended September 30, 2022, compared to 33,658 tonnes at an ASP of $488/tonne for the same period of last year.

 

Revenue from offset printing paper was $nil for the nine months ended September 30, 2022, compared to revenue of approximately $14.10 million for the same period of last year. The Company sold 20,602 tonnes of offset printing paper at an ASP of $684/tonne in the nine months ended September 30, 2021.

 

Revenue from tissue paper products decreased by 83.0%, to approximately $1.10million for the nine months ended September 30, 2022, from approximately $6.49 million for the same period of last year. The Company sold 1,040 tonnes of tissue paper products at an ASP of $1,061/tonne for the nine months ended September 30, 2022, compared to 5,963 tonnes at an ASP of $1,089/tonne for the same period of last year.

 

Revenue from face masks decreased by 48.7%, to approximately $0.20 million for the nine months ended September 30, 2022, from $0.39 million for the same period of last year. The Company sold 4,295 thousand pieces of face masks for the nine months ended September 30, 2022, compared to 9,650 thousand pieces of face masks for the same period of last year.

 

5

 

 

Gross Profit and Gross Margin

 

Total cost of sales decreased by 31.1%, to approximately $75.25 million for the nine months ended September 30, 2022 from approximately $109.15 million for the same period of last year. This was mainly a result of the decrease in sales volume of CMP and offset printing paper and decrease of material costs of CMP. Costs of sales per tonne for regular CMP, light-weight CMP, offset printing paper and tissue paper products were $434, $411,$nil and$3,114, respectively, for the nine months ended September 30, 2022, compared to $477, $453, $565 and $1,245, respectively, for the same period of last year.

 

Total gross profit was approximately $3.73million for the nine months ended September 30, 2022, compared to the gross profit of approximately $6.68 million for the same period of last year as a result of factors described above. Overall gross margin was 4.7% for the nine months ended September 30, 2022, compared to 5.8% 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 7.2%, 9.2%, nil%, -193.6%, and25.7%, respectively, for the nine months ended September 30, 2022, compared to 5.0%, 7.3%, 17.5%, -14.4% and 17.0%, respectively, for the same period of last year.

 

Selling, General and Administrative Expenses

 

Selling, general and administrative expenses (“SG&A”) increased by 19.1%, to approximately $8.54 million for the nine months ended September 30, 2022 from approximately $7.17million for the same period of last year.

 

Loss from Operations

 

Loss from operations was approximately $4.78 million for the nine months ended September 30, 2022, a decrease of 874.2%, from loss from operations of approximately $0.49 million for the same period of last year. Operating loss margin was 6.1% for the nine months ended September 30, 2022, compared to operating loss margin of 0.4% for the same period of last year.

 

Net Loss

 

Net loss was approximately $4.66 million, or loss per share of $0.07, for the nine months ended September 30, 2022, compared to net loss of approximately $3.25 million, or loss per share of $0.06, for the same period of last year.

 

EBITDA

 

EBITDA was approximately $7.18 million for the nine months ended September 30, 2022, compared to approximately $2.69 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 Nine Months Ended
September 30,		 
($ millions)  2022   2021 
Net loss   -4.66    -3.25 
Add: Income tax   -0.16    -4.95 
Net interest expense   0.79    -0.84 
Depreciation and amortization   11.22    11.73 
EBITDA   7.18    2.69 

 

6

 

 

Cash, Liquidity and Financial Position

 

As of September 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 $16.02million, $10.54 million and $4.69 million, 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 $4.24 million as of September 30, 2022, compared to approximately $4.87 million as of December 31, 2021. Net inventory was approximately $4.44 million as of September 30, 2022, compared to approximately$5.84 million as of December 31, 2021. As of September 30, 2022, the Company had current assets of approximately$48.43 million and current liabilities of approximately$17.59million, resulting in a working capital of approximately$30.84 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$7.43 million for the nine months ended September 30, 2022, compared to net cash used in operating activities of approximately $6.44 million for the same period of last year. Net cash used in investing activities was approximately$8.19 million for the nine months ended September 30, 2022, compared to approximately$12.78 million for the same period of last year. Net cash provided by financing activities was approximately$6.84million for the nine months ended September 30, 2022, compared to approximately$41.55 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 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

 

7

 

 

IT TECH PACKAGING, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

AS OF SEPTEMBER 30, 2022 AND DECEMBER 31, 2021

(unaudited)

 

   September 30,   December 31, 
   2022   2021 
ASSETS        
         
Current Assets        
Cash and bank balances  $16,017,403   $11,201,612 
Restricted cash   -    - 
Accounts receivable (net of allowance for doubtful accounts of $61,270 and $69,053 as of September 30, 2022 and December 31, 2021, respectively)   4,236,299    4,868,934 
Inventories   4,441,390    5,844,895 
Prepayments and other current assets   22,795,907    25,796,640 
Due from related parties   938,803    7,804,068 
           
Total current assets   48,429,802    55,516,149 
           
Prepayment on property, plant and equipment   1,266,120    43,446,210 
Operating lease right-of-use assets, net   659,912    - 
Finance lease right-of-use assets, net   1,940,586    2,286,459 
Property, plant, and equipment, net   149,535,243    126,587,428 
Value-added tax recoverable   2,066,239    2,430,277 
Deferred tax asset non-current   11,239,637    11,268,679 
           
Total Assets  $215,137,539   $241,535,202 
           
LIABILITIES AND STOCKHOLDERS’ EQUITY          
           
Current Liabilities          
Short-term bank loans  $5,632,553   $5,958,561 
Current portion of long-term loans from credit union   4,175,620    6,838,465 
Lease liability   272,147    210,161 
Accounts payable   144,213    10,255 
Advance from customers   35,646    39,694 
Due to related parties   727,856    727,433 
Accrued payroll and employee benefits   221,530    291,206 
Other payables and accrued liabilities   5,635,813    5,250,539 
Income taxes payable   746,694    1,108,038 
           
Total current liabilities   17,592,072    20,434,352 
           
Loans from credit union   4,692,235    2,980,065 
Deferred gain on sale-leaseback   73,311    155,110 
Lease liability - non-current   568,952    152,233 
Derivative liability   1,334,271    2,063,534 
           
Total liabilities (including amounts of the consolidated VIE without recourse to the Company of $17,417,813 and $17,924,475 as of September 30, 2022 and December 31, 2021, respectively)   24,260,841    25,785,294 
           
Commitments and Contingencies          
           
Stockholders’ Equity          
Common stock, 50,000,000 shares authorized, $0.001 par value per share, 11,415,920 and 9,915,920 shares issued and outstanding as of September 30, 2022 and December, 31, 2021, respectively.   11,416    9,916 
Additional paid-in capital   90,575,421    89,016,921 
Statutory earnings reserve   6,080,574    6,080,574 
Accumulated other comprehensive (loss) income   (11,273,597)   10,496,168 
Retained earnings   105,482,884    110,146,329 
           
Total stockholders’ equity   190,876,698    215,749,908 
           
Total Liabilities and Stockholders’ Equity  $215,137,539   $241,535,202 

 

8

 

 

IT TECH PACKAGING, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2022 AND 2021

(Unaudited)

 

   Three Months Ended
September 30,		   Nine Months Ended
September 30,		 
   2022   2021   2022   2021 
                 
Revenues  $31,709,214   $45,087,671   $78,979,716   $115,832,013 
                     
Cost of sales   (28,925,626)   (43,266,135)   (75,251,646)   (109,150,452)
                     
Gross Profit   2,783,588    1,821,536    3,728,070    6,681,561 
                     
Selling, general and administrative expenses   (3,370,541)   (2,019,565)   (8,541,224)   (7,172,495)
Gain on acquisition   (1,759)   -    30,404    - 
                     
Loss from Operations   (588,712)   (198,029)   (4,782,750)   (490,934)
                     
Other Income (Expense):                    
Interest income   7,729    12,044    16,108    28,096 
Subsidy income   -    (30)   -    197,861 
Interest expense   (256,678)   (281,670)   (786,597)   (844,470)
Gain (Loss) on derivative liability   (617,370)   1,938,873    729,263    2,810,913 
                     
(Loss) Income before Income Taxes   (1,455,031)   1,471,188    (4,823,976)   1,701,466 
                     
Provision for Income Taxes   (432,287)   71,388    160,531    (4,950,994)
                     
Net (Loss) Income   (1,887,318)   1,542,576    (4,663,445)   (3,249,528)
                     
Other Comprehensive (Loss) Income                    
Foreign currency translation adjustment   (11,171,156)   (819,183)   (21,769,765)   1,128,209 
                     
Total Comprehensive (Loss) Income  $(13,058,474)  $723,393   $(26,433,210)  $(2,121,319)
                     
(Losses) Earnings Per Share:                    
                     
Basic and Diluted (Losses) Earnings per Share  $(0.03)  $0.03   $(0.07)  $(0.06)
                     
Outstanding – Basic and Diluted   71,449,208    54,196,300    71,449,208    54,196,300 

 

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IT TECH PACKAGING, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2022 AND 2021

(Unaudited)

 

   Nine Months Ended 
   September 30, 
   2022   2021 
         
Cash Flows from Operating Activities:        
Net income  $(4,663,445)  $(3,249,528)
Adjustments to reconcile net income to net cash provided by operating activities:          
Depreciation and amortization   11,218,254    11,733,664 
(Gain) Loss on derivative liability   (729,263)   (2,810,913)
Gain on acquisition   (32,502)   - 
(Recovery from) Allowance for bad debts   (791)   20,118 
Share-based compensation and expenses   1,560,000    - 
Deferred tax   (1,197,630)   3,235,556 
Changes in operating assets and liabilities:          
Accounts receivable   146,250    (1,742,594)
Prepayments and other current assets   (422,092)   (6,918,816)
Inventories   863,170    (6,396,066)
Accounts payable   144,331    (242,357)
Advance from customers   -    (43,161)
Related parties   (149,827)   (821,943)
Accrued payroll and employee benefits   (42,738)   92,207 
Other payables and accrued liabilities   1,000,945    522,353 
Income taxes payable   (265,493)   178,903 
Net Cash Provided by (Used in) Operating Activities   7,429,169    (6,442,577)
           
Cash Flows from Investing Activities:          
Purchases of property, plant and equipment   (1,681,979)   (12,781,114)
Acquisition of land   (6,507,431)   - 
    　    　 
Net Cash Used in Investing Activities   (8,189,410)   (12,781,114)
           
Cash Flows from Financing Activities:          
Proceeds from issuance of shares and warrants, net   -    41,837,553 
Proceeds from short term bank loans   602,319    - 
Proceeds from long term loans   60,232    - 
Repayment of bank loans   (307,182)   (154,579)
Payment of capital lease obligation   (154,212)   (135,611)
Loan repaid by a related party   6,638,923    - 
           
Net Cash Provided by Financing Activities   6,840,080    41,547,363 
           
Effect of Exchange Rate Changes on Cash and Cash Equivalents   (1,264,048)   109,473 
           
Net Increase in Cash and Cash Equivalents   4,815,791    22,433,145 
           
Cash, Cash Equivalents and Restricted Cash - Beginning of Period   11,201,612    4,142,437 
           
Cash, Cash Equivalents and Restricted Cash - End of Period  $16,017,403   $26,575,582 
           
Supplemental Disclosure of Cash Flow Information:          
Cash paid for interest, net of capitalized interest cost  $248,275   $485,075 
Cash paid for income taxes  $1,287,530   $1,523,555 
           
Cash and bank balances   16,017,403    26,575,582 
Restricted cash   -    - 
Total cash, cash equivalents and restricted cash shown in the statement of cash flows   16,017,403    26,575,582 

 

 

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