IT Tech Packaging, Inc. Announces First Quarter 2023 Unaudited Financial Results.

BAODING, China: 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 first quarter ended March 31, 2023.

Mr. Zhenyong Liu, Chairman and Chief Executive Officer of the Company, commented, "In the first quarter of 2023, we had the revenue increased by 27.83% to approximately $19.79 million. As the Chinese government carried out a serious economic stimulus and support policies, this will definitely improve the demand and overall operating environment for paper-making industry. We will seize the chance by taking management measures, such as optimizing raw material procurement, diversifying the product structure and reducing cost to improve the profitability and prepare for the market recovery."

First Quarter 2023Unaudited Financial Results

For the Three Months Ended March 31,

($ millions)

2023

2022

% Change

Revenues

19.79

15.48

27.83 %

Regular Corrugating Medium Paper ("CMP")*

16.47

13.10

25.72 %

Light-Weight CMP**

3.06

1.93

58.77 %

Offset Printing Paper

-

-

-

Tissue Paper Products

0.22

0.40

-44.04 %

Face Masks

0.04

0.06

-37.03 %

Gross profit (Loss)

-0.28

0.31

-189.23 %

Gross profit (loss) margin

-1.40 %

2.01 %

-3.41 pp****

Regular Corrugating Medium Paper ("CMP")*

1.93 %

5.35 %

-3.42pp****

Light-Weight CMP**

3.96 %

8.15 %

-4.19 pp****

Offset Printing Paper

-

-

-

Tissue Paper Products***

-316.80 %

-141.51 %

-175.29 pp****

Face Masks

-7.97 %

29.47 %

-37.44pp****

Operating loss

-2.77

-2.99

-7.29 %

Net loss

-2.73

-2.49

-9.84 %

EBITDA

1.21

1.20

0.83 %

Basic and Diluted loss per share

-0.27

-0.25

-0.08 %

* Products from PM6

** Products from PM1

*** Products from PM8 and PM9

**** pp represents percentage points

Revenue increased by 27.83% to approximately $19.79 million, mainly due to the increase in sales volume of corrugating medium paper ("CMP"), partially offset by the decrease of average selling prices of CMP.

Gross loss was approximately $0.28 million, compared with gross profit of $0.31 for the same period of last year. Total gross loss margin decreased by 3.41 percentage point to negative 1.40%.

Loss from operations was approximately $2.77 million, compared to approximately $2.99 million for the same period of last year.

Net loss was approximately $2.73 million, or loss per share of $0.27, compared to approximately $2.49 million, or loss per share of $0.25, for the same period of last year.

Earnings before interest, taxes, depreciation and amortization ("EBITDA") was approximately $1.21 million, compared to$1.20 million for the same period of last year.

Revenue

For the first quarter of 2023, total revenue increased by 27.83%, to approximately $19.79 million from approximately $15.48 million for the same period of last year. This was mainly due to the increase in sales volume of corrugating medium paper ("CMP"), partially offset by the decrease of average selling prices...