IT Tech Packaging Inc. (NASDAQ: ITP) stock surged by 0.66% at last close whereas the ITP stock declines by 1.22% in the pre-market trading session. IT Tech Packaging, established in 1996, is a major producer and distributor of a wide range of paper products in North China. ITP manufactures and distributes three types of paper products: corrugating medium paper, offset printing paper, and tissue paper products, both of which are made from recycled paper as the primary raw material.
On May 12, 2021, ITP announced its first-quarter 2021 financial results. Given below is the summary:
- Net sales for the first quarter of 2021 rose by $15.47 million, or 176.9%, to $24.21 million, up from $8.74 million the previous year. The growth in overall revenue was mostly attributed to higher sales volumes and average selling rates for CMP and offset printing paper.
- In the same time last year, operating profit was $1.83 million, relative to a gross loss of $0.17 million. The gross profit margin was 7.5 percent, compared to 1.9 percent for the same time last year.
- The loss from operations was $0.72 million, compared to $2.87 million for the same time the previous year.
- ITP lost $4.34 million, or $0.12 per share, compared to a loss of $2.44 million, or $0.11 per share, in the same quarter last year.
- EBITDA (earnings before debt, taxation, depreciation, and amortization) was negative $0.07 million, down from $1.04 million the year before.
Mr. Zhenyong Liu, Chairman, and CEO of ITP, commented:
ITP recovered quickly from the effects of the global COVID-19 pandemic, reporting increased revenue from tissue paper, offset printing paper and CMP goods. After the launch of PM8 and PM9 in December 2018 and November 2019, their tissue paper supply and sales have gradually increased. ITP has finished the foundations for its current tissue paper manufacturing line and are now focusing on the installation of accessory equipment. In addition, ITP is diversifying their income streams and ensuring the stable profit-making modes by extending their industry to high and emerging technology businesses such as combined heat and power generation projects using bio mass technology.