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

BAODING, China, Nov. 11, 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.

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.

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







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.

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

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

 

 

 

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


 

 

 

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


 

 

 

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


 

View original content:https://www.prnewswire.com/news-releases/it-tech-packaging-inc-announces-third-quarter-2022-unaudited-financial-results-301674883.html


Source: IT Tech Packaging, Inc. Related Stocks: AMEX:ITP
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