IT Tech Packaging, Inc. reported its financial results for the third quarter and the first nine months of 2025, revealing a modest increase in revenue but continued operational losses. For the three months ended September 30, 2025, the company generated revenues of $25.6 million, a 2.07% increase from $25.1 million in the same period last year. The nine-month revenue also saw a rise, reaching $61.3 million, up 5.32% from $58.2 million in 2024. Despite this growth, the company recorded a net loss of $1.4 million for the quarter, a 26.63% improvement compared to a loss of $2.0 million in the prior year. For the nine-month period, the net loss increased to $6.9 million from $5.8 million.
The financial performance was influenced by a rise in sales volume of corrugating medium paper (CMP), which accounted for the entirety of the revenue increase. The total quantity sold during the third quarter was 75,686 tonnes, up 1.07% from 74,884 tonnes in the previous year. However, the average selling prices for CMP products experienced a slight increase, which was not enough to offset the overall decline in profitability. The gross profit for the quarter was $2.0 million, representing a gross margin of 7.90%, compared to 7.64% in the same quarter of 2024.
Operationally, IT Tech Packaging faced challenges, including a significant increase in accounts receivable, which rose by 623.01% to $2.1 million, and a 65.8% increase in inventory, totaling $3.9 million. The company attributed these changes to higher procurement volumes in anticipation of rising material costs and planned production expansions. The company’s working capital stood at $17.1 million, but concerns were raised regarding the ability of its subsidiaries, Baoding Shengde and Tengsheng Paper, to continue as going concerns due to ongoing losses and high depreciation costs.
In terms of strategic developments, IT Tech Packaging issued 6.9 million shares to institutional investors in May 2025, raising approximately $1.4 million. The company is also focusing on optimizing its raw material structure and stabilizing manufacturing capacity to reduce costs. Looking ahead, IT Tech Packaging aims to enhance market acceptance of its products and improve operational efficiency to achieve better financial results. The company remains cautious about its future, emphasizing the need for effective marketing strategies and cost control measures to navigate the current market conditions.
About IT TECH PACKAGING, INC.
IT Tech Packaging is a holding company that produces and distributes paper products, including corrugating medium, offset printing paper, tissue paper, and medical face masks in China. Its operations are conducted through subsidiaries and a variable interest entity (VIE) under contractual arrangements, focusing on recycled paper-based manufacturing. The company serves packaging, publishing, and healthcare markets, leveraging cost-efficient production and strategic control of Chinese operations.
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