It Tech Packaging, Inc. (NYSE:ITP)

Fourth Quarter 2019 Financial Results

• For the fourth quarter of 2019, total revenue increased by $8.6 million, or 34.5%, to $33.6 million from $25 million for the same period of last year. 
  
• Net Income increased by $12.8 million, or 121.1%, to $2.2 million, or earnings per basic and diluted share of $0.10, for the year ended December 31, 2019. This compared to net loss of $10.5 million, or loss per basic and diluted share of $0.49, for 2018.

"Our revenues and profitability continued to improve in 2019 as we shook off the effects of the 2018 production suspensions resulting from air-pollution controls, in part due to our 2018 equipment upgrades. Our total revenue was $117.6 million, a 35.6% year-over-year increase, resulting from a 59.5% growth of overall sales volume that was partially offset by a 15% decrease in average selling prices over all categories of products," commented by Mr. Zhengyong Liu, Chairman and Chief Executive Officer of the Company.

"With 135.1% and 121.1% growth in gross profit and net income, respectively, our margins and profitability substantially improved in fiscal year 2019 thanks to a continued increase in sales volume for all products, combined with decreases in operating expenses. With completion of trial operation of our PM9 production line in the fourth quarter of 2019, our tissue paper products recorded total sales of $6.4 million from both PM8 and PM9 in the year. In addition, with $20.4 million of sales, we delivered 297.8% growth in offset printing paper for 2019.

"Despite a short delay in production resulting from Covid-19 in China in early 2020, the stabilization of orders in recent months gives us reason to be optimistic for stable growth in 2020. As a leading papermaking enterprises situated in Hebei Province which surrounds Beijing-Tianjin, the largest metropolitan area in North China, we have a large market for our products and easy access to lower costs of raw materials and logistics. Thus we will continue take such advantages to improve our capabilities to deliver sustainable growth and create long-term value to our shareholders."

BAODING, China, March 10, 2020 /PRNewswire/ -- IT Tech Packaging, Inc. (NYSE MKT: ITP) ("IT Tech Packaging" or "the Company"), a leading manufacturer and distributor of diversified paper products in North China, today announced that the Company have resumed 70% of its full capacity of production as of March 5, 2020, following the strict measures put in place for the control and prevention of the Covid-19 spread. The Company expects to resume the rest of the production in the next couple days.

To meet the increasing public demand for household tissue paper, the Company immediately made its sufficient inventories available to increase its paper products supply after the outbreak of Covid-19. In addition, the Company donated tissue paper products and epidemic prevention products to support quarantine officers and healthcare personnel battling against Covid-19 in the region where the Company situated.  

Mr. Zhenyong Liu, the CEO and Chairman of the Company, commented," As the epidemic is almost controlled over the country, our productions and operations are back on track at full speed. We deeply express our respect and gratitude to the quarantine officers and healthcare personnel fighting against the Covid-19, and believe that the epidemic has limited impact on our business due to efficient and active control and prevention measures taken by Chinese government. Despite a challenging start of the 2020, we still believe that our business such as corrugated medium paper production will be steadily improved as it benefits from the Guidance On Speeding Up The Transformation and Development Of China's Packaging Industry issued by the Ministry of Commerce of the Ministry of Industry and Information Technology (MITT), according to which China will be the largest packaging consumption and manufacture market with a leading growth rate above the global average level."

BAODING, China, Nov. 20, 2019 /PRNewswire/ -- IT Tech Packaging, Inc. (NYSE MKT: ITP) ("IT Tech Packaging" or the "Company"), a leading manufacturer and distributor of diversified paper products in North China, today announced the commercial launch of a new tissue paper production line (the "PM9 Production Line"), following the success of its trial production, the receipt of its disposed wastewater discharge permits and construction completion acceptance from Chinese environmental authorities. Until now, the Company has its two tissue paper production lines PM8 and PM9 operational.

"We are delighted that all of the planned tissue paper production lines, PM8 and PM9, have been launched and operational. In addition to the existing packaging and cultural paper services, we have eventually completed our own production lines of tissue paper products, we expect continued revenue stream will be generated from our tissue paper products as capacities of the new production lines gradually released in the next couple months. As we anticipate China's tissue paper market will continue its growth in 2020, we are actively diversifying our products portfolio as attempting to bring value-added products and cutting-edge equipment, and continuing restructure our raw materials and technologies to catering to the consumption upgrade of domestic market", said Mr. Zhenyong Liu, Chairman and Chief Executive Officer of IT Tech Packaging.

BAODING, China, Nov. 20, 2019 /PRNewswire/ -- IT Tech Packaging, Inc. (NYSE MKT: ITP) ("IT Tech Packaging" or the "Company"), a leading manufacturer and distributor of diversified paper products in North China, today announced the commercial launch of a new tissue paper production line (the "PM9 Production Line"), following the success of its trial production, the receipt of its disposed wastewater discharge permits and construction completion acceptance from Chinese environmental authorities. Until now, the Company has its two tissue paper production lines PM8 and PM9 operational.

"We are delighted that all of the planned tissue paper production lines, PM8 and PM9, have been launched and operational. In addition to the existing packaging and cultural paper services, we have eventually completed our own production lines of tissue paper products, we expect continued revenue stream will be generated from our tissue paper products as capacities of the new production lines gradually released in the next couple months. As we anticipate China's tissue paper market will continue its growth in 2020, we are actively diversifying our products portfolio as attempting to bring value-added products and cutting-edge equipment, and continuing restructure our raw materials and technologies to catering to the consumption upgrade of domestic market", said Mr. Zhenyong Liu, Chairman and Chief Executive Officer of IT Tech Packaging.

Second Quarter 2019 Financial Results

• Revenue increased by 1.5% to $33.6 million
• Net income was $0.5 million, or $0.02 per basic and diluted share, compared to net income of $0.1 million, or $0.01 per basic and diluted share, for the same period of last year.

Mr. Zhenyong Liu, Chairman and Chief Executive Officer of the Company, commented, "With sales volume increasing by 32.8% year-over-year and reaching the highest level since the first quarter of 2017, our 2019 second quarter results highlighted continued recovery of our business. Despite continued downward trend in ASPs that offset the increases in sales volume for both CMP and offset printing paper, we managed to grow our top line by 1.4% and made a successful turnaround, thanks to solid contribution from offset printing paper products and tissue paper products that we commenced production by the end of 2018. Looking ahead, we expect the market demands and ASPs for our paper products will be stable in the upcoming quarters."

Second Quarter 2019 Financial Results

• Revenue increased by 1.5% to $33.6 million.
• Net income was $0.5 million, or $0.02 per basic and diluted share, for the second quarter of 2019, compared to net income of $0.1 million, or $0.01 per basic and diluted share, for the same period of last year.

Mr. Zhenyong Liu, Chairman and Chief Executive Officer of the Company, commented, "With sales volume increasing by 32.8% year-over-year and reaching the highest level since the first quarter of 2017, our 2019 second quarter results highlighted continued recovery of our business. Despite continued downward trend in ASPs that offset the increases in sales volume for both CMP and offset printing paper, we managed to grow our top line by 1.4% and made a successful turnaround, thanks to solid contribution from offset printing paper products and tissue paper products that we commenced production by the end of 2018. Looking ahead, we expect the market demands and ASPs for our paper products will be stable in the upcoming quarters."

BAODING, China, June 27 2019 /PRNewswire/ -- IT Tech Packaging, Inc. (NYSE MKT: ITP) ("IT Tech Packaging" or "the Company"), a leading manufacturer and distributor of diversified paper products in North China, today announced that Hebei Baoding Dongfang Paper Milling Company Limited ("Dongfang Paper"), the major operating entity of the Company, has entered into an acquisition Agreement (the "Agreement") with Hebei Tengsheng Paper Co. Ltd. ("Tengsheng Paper"), pursuant to which Dongfang Paper shall acquire 100% equity interests in Tengsheng Paper and all right, title and interest in and to all assets owned by Tengsheng Paper (the "Purchased Equity and Assets"). Tengsheng Paper is leasing its land of approximately 50 acres to the Company with a lease term of 15 years that expires in November 2027. After the completion of the acquisition, the PM8 production line will be transferred to Tengsheng Paper which as a wholly-owned subsidiary of Dongfang Paper, will focus on manufacturing and distribution of tissue paper in the future.

Pursuant to the Agreement entered into on June 25, 2019, in consideration for the Purchased Equity and Assets, Dongfang Paper will pay to Tengsheng Paper a total purchase price of RMB320 million (approximately $47 million) (the "Purchase Price") within six months of the execution of the Agreement.  Further, Dongfang Paper will entrust the existing management of Tengsheng Paper to continue operating the business of Tengsheng Paper and the existing legal representative of Tengsheng Paper will continue acting as the legal representative of Tengsheng.  Dongfang Paper will entrust the prior shareholders of Tengsheng Paper to represent it to hold and exercise all shareholder' rights to which it is entitled as the shareholder of Tengsheng Paper.

Mr. Zhenyong Liu, Chairman and Chief Executive Officer of IT Tech Packaging commented, "We have had a solid business partnership with Tengsheng Paper since 2012. With land use rights of 761.05 mu, we believe that Tengsheng Paper will offer us ample site and space for our tissue paper production lines. The acquisition of Tengsheng Paper shows our confidence in prospect of the Chinese tissue paper market and we also believe it paves the way for us to further penetrate into the tissue paper market."

First Quarter 2019 Financial Results

• For the first quarter of 2019, total revenue increased by $15.56 million, or 824.2%, to $17.45 million from $1.89 million for the same period of last year.
• Net loss per basic and diluted share improved by $0.07, or 36.8%, to $0.12 for the first quarter of 2019 from $0.19 for the same period of last year.

Mr. Zhenyong Liu, Chairman and Chief Executive Officer of the Company, commented, "Our financial results of the first quarter 2019 showed significant improvement versus the same period last year mainly as government-mandated restrictions on natural gas supply caused production suspension from late January to mid-March of last year. However, on a sequentially basis, our first quarter 2019 revenue of $17.45 million decreased from the levels of the prior three quarters, highlighting the seasonal effect of the Chinese New Year as well as the continued challenges facing our CMP business. Sales of tissue paper products were the bright spot in the first quarter of 2019, contributing $1.86 million in revenue, or 10.7% of total revenue, thanks to the newly launched tissue paper production line at PM8. With the offset printing paper resuming production in April 2019, the Company has all the production lines in operation. As such, we expect to improve the overall performance in the coming quarters. For the remainder of the year, we expect no big swings in both market demand and ASP for our products."          

Third Quarter 2018 Financial Results

• Revenue for the third quarter of 2018 decreased by 20.2% to $26.72 million, primarily attributable to a decrease in overall sales volume of 23.8% and partially offset by an increase in average selling prices ("ASP") of 4.7%.
• Net loss for the third quarter of 2018 was $1.40 million, or net loss of $0.07 per diluted share, compared to net income of $1.57 million, or net earnings of $0.07 per diluted share, for the same period of the prior year.

Mr. Zhenyong Liu, Chairman and Chief Executive Officer of the Company, commented, "with decreases in both revenues and margins, our third quarter results highlighted continued challenges facing our business. With China's GDP registered the slowest growth rate since the first quarter of 2009, the continuing slowdown of China's growth momentum clearly took a toll on paper companies including us during the third quarter. Looking ahead, with the ongoing trade war between China and the U.S. as well as heightened government efforts on environmental protection, the paper industry faces significant risks and uncertainties, and, as a result, our financial performance could be volatile in the near term."

Second Quarter 2018  Financial Results

• Revenue increased by 45.5% to $33.1 million, primarily attributable to increase in average selling prices (ASP) for both corrugating medium paper ("CMP") and offset printing paper as well as increase in sales volume of CMP, partially offset by the decrease in sales volume of offset printing paper.
• Net income was $0.1 million, or $0.01 per diluted share, compared to $0.016 million, or $0.001 per diluted share, for the same period of last year.

Mr. Zhenyong Liu, Chairman and Chief Executive Officer of the Company, commented, "We are pleased to see a strong snapback in our business during the second quarter following the suspension of production from late January to Mid-March due to a government-mandated restriction on the supply of natural gas that interrupted our normal business during the first quarter. Our total revenue increased by 45.5% to $33.1 million, benefitted from continued uptick in average selling prices for both CMP and offset print paper. Looking forward, while the temporary government mandated production restriction/suspension from time to time continues to pose risks and uncertainties to our business, we expect that the prices for our major products to remain relatively stable at the current levels."

BAODING, China, Aug. 1, 2018 /PRNewswire/ -- Orient Paper, Inc.  (NYSE MKT: ONP) (the "Company"), a leading manufacturer and distributor of diversified paper products in North China, today announced that its corporate name change from "Orient Paper, Inc." to "IT Tech Packaging, Inc." became effective on August 1, 2018. In connection with the name change, the Company's common stock will begin trading under a new ticker symbol "ITP" and a new CUSIP number, 46527C100, at the opening of trading on August 1, 2018.

First Quarter 2018 Financial Results

• For the first quarter of 2018, total revenue decreased by $23.4 million, or 92.5%, to $1.9 million from $25.3 million for the same period of the prior year.
• Net loss was $4.1 million, or net loss of $0.19 per basic and diluted share, for the first quarter of 2018, compared to net income of $1.7 million, or net earnings of $0.08 per basic and diluted share, for the same period of the prior year.

First Quarter 2018 Financial Results

• Revenue of $1.9 Million vs last years Quarter $25.3 Million.
• Diluted earnings (loss) per share was ($0.19) vs last years quarter of $0.08.

Mr. Zhenyong Liu, Chairman and Chief Executive Officer of Orient Paper, commented, "Our disappointing first quarter results reflected the impact of temporary suspension of production due to government-mandated restriction on the supply of natural gas that lasted for most of the first quarter. However, production at our manufacturing facilities has been back to normal since mid-March and we anticipate a strong rebound in our business in the second quarter."

Fourth Quarter 2017 Financial Results

• For the fourth quarter of 2017, total revenue increased by $4.1 million, or 12.9%, to $35.4 million from $31.4 million for the same period of the prior year.
• Net loss was $1.6 million, or $0.08 per loss basic and diluted share, for the fourth quarter of 2017, compared to net income of $3.1 million, or earnings per basic and diluted share of $0.14, for the same period of the prior year.

"Revenue increased by 12.9% to $35.4 million for the fourth quarter of 2017, benefitted from an increase of 35.8% in blended ASP and partially offset by a decrease of 16.9% in overall sales volume," said Zhenyong Liu, Chairman and Chief Executive Officer of Orient Paper.

Mr, Liu continued, "As previously announced, the Company temporarily suspended its production in January 2018 due to a government-mandated restriction on the natural gas supply, which is the energy resource we need for production. As of March 14, 2018, the company resumed production at its manufacturing facilities. As a result of the temporary suspension of production, we expect revenue to be significantly impacted in the first quarter of 2018."

BAODING, China, March 14, 2018 /PRNewswire/ -- Orient Paper, Inc. (NYSE MKT: ONP) ("Orient Paper" or the "Company"), a leading manufacturer and distributor of diversified paper products in North China, today announced that it resumed production at its manufacturing facilities on March 14, 2018.  Production had been suspended since late January due to a government-mandated restriction on the supply of natural gas.

BAODING, China, Jan 26, 2018 /PRNewswire/ -- Orient Paper, Inc. (NYSE MKT: ONP) ("Orient Paper" or the "Company"), a leading manufacturer and distributor of diversified paper products in North China, today announced that it will temporarily suspend all of its production lines due to mandated restriction/suspension of natural gas supply (the "Restriction") for all natural gas consumption industries, including the paper manufacturing industry in order to secure adequate natural gas to households uses in urban and rural areas in Hebei Province. The Restriction is in accordance with the second highest alert over supply shock of natural gas (the "Orange Alert") which has been in place since November 27, 2017. Multiple cities in the province including Baoding and Xingtai where the Company's facilities located have successively issued notices about the restriction of natural gas supply to their industrial users. The suspension is expected to last into February, 2018, when the Company expects the Restriction to be eased. The Company is going to implement equipment maintenance during the temporary suspension of production. The temporary suspension of production will impact the Company's current corrugating medium paper, offset printing paper and tissue paper operations.

BAODING, China, Nov. 3, 2017 /PRNewswire/ -- Orient Paper, Inc. (NYSE MKT: ONP) ("Orient Paper" or the "Company"), a leading manufacturer and distributor of diversified paper products in North China, today pre-announced its unaudited preliminary results for the quarter ended September 30, 2017. The Company anticipates filing its quarterly report on Form 10-Q for the third quarter 2017 with the Securities and Exchange Commission and releasing its earnings after the market close on Thursday, November 9, 2017. The Company will host its third quarter 2017 financial results conference call at 8:00 am Eastern Time (5:00 am Pacific Time/9:00 pm Beijing Time) on Friday, November 10, 2017.

Zhenyong Liu, Chairman and Chief Executive Officer of Orient Paper, commented, "Our third quarter results largely reflected the impact of a government mandated temporary restriction on production volume that has been in place since November 2016. Total revenue decreased by 10.6% year over year to $33.5 million on the back of a 36.1% drop in overall volume that more than offset the increase in blended average selling prices. Looking ahead, we expect the newly elected Communist Party of China leaders to continue to promulgate rules and regulations on environmental protection that could lead to government-mandated temporary restriction or suspension on paper production from time-to-time, leading to significant changes in pricing and supply/demand balances."

Second Quarter 2017 Financial Results

• Revenue decreased by 40.0% to $22.8 million, primarily attributable to decrease in overall sales volume and partially offset by a moderate increase in blended average selling prices.
• Net income was $15.9 thousand, or $0.001 per diluted share, compared to $2.6 million, or $0.12 per diluted share, for the same period of last year.

Zhenyong Liu, Chairman and Chief Executive Officer of Orient Paper, commented, "Our second quarter results were impacted to a large extent by a temporary government mandated restriction on production that has been in place since November 2016. Total sales volume decreased by 42.5% to 55,069 tonnes, the lowest level since the first quarter of 2013, leading to a 40.0% decrease in total revenue in the second quarter. Our margins also deteriorated as a result of increases in unit costs of recycled paper board, recycled white scrap paper, and coal that increased by 34.0%, 17.5%, and 56.9% year-over-year, respectively. Looking ahead, we expect that the prices for our major products to remain relatively stable at current levels. However, the temporary government mandated production restrictions/suspensions that are enacted from time to time continue to pose risks and uncertainties to our business."

Second Quarter 2017 Financial Results

• Revenues's were $22.8 Million vs. last years same quarter of $38.0 Million.
• Diluted EPS was $0.00 vs. last years same quarter of $0.12.

Zhenyong Liu, Chairman and Chief Executive Officer of Orient Paper, commented, "Our second quarter results largely reflected the impact of a government mandated temporary restriction on production that has been in place since November 2016. Total sales volume decreased by 42.5% to 55,069 tonnes, the lowest level since the first quarter of 2013, leading to a 40.0% decrease in total revenue in the second quarter. Our margins also deteriorated as a result of increases in unit costs of recycled paper board, recycled whit scrap paper, and coal that increased by 34.0%, 17.5%, and 56.9% year-over-year, respectively. Looking ahead, we expect that the prices for our major products to remain relatively stable at current levels and the temporary government mandated production restriction/suspension from time to time continues to pose risks and uncertainties to our business."