IT Tech Packaging, Inc. reported a net loss of $5.46 million for the six months ending June 30, 2025, a significant increase from a loss of $3.82 million during the same period in 2024. Revenue for the first half of 2025 rose to $35.69 million, up 7.79% from $33.11 million in the prior year, primarily driven by an increase in sales volume of corrugating medium paper (CMP). However, the average selling prices for CMP products decreased, impacting overall profitability. The company’s gross profit for the six months was $1.36 million, a decline of 62.95% compared to $3.66 million in 2024, reflecting a gross margin drop from 11.07% to 3.80%.
In the second quarter of 2025, IT Tech Packaging's revenue decreased by 5.54% to $24.79 million from $26.25 million in the same quarter of 2024. This decline was attributed to reduced sales volumes and average selling prices of CMP. The company sold 74,188 tonnes of CMP during the quarter, down from 75,365 tonnes a year earlier. The gross profit for this quarter was $1.27 million, a 60.99% decrease from $3.27 million in the previous year, resulting in a gross margin of 5.14%, down from 12.44%.
Operationally, the company has faced challenges, including a significant increase in accounts receivable, which rose by 540.18% to $1.84 million, and a 116.6% increase in inventory, totaling $5.09 million. The increase in inventory was largely due to higher procurement of recycled paper board in anticipation of rising prices and planned production output. The company’s total current assets reached $32.64 million, while current liabilities were $21.34 million, resulting in a working capital of $11.30 million. However, excluding a recoverable VAT of $13.21 million, the company reported a working capital deficit of $1.91 million.
Strategically, IT Tech Packaging has been focusing on optimizing its raw material structure and stabilizing manufacturing capacity to reduce costs. The company is also exploring new products and adjusting pricing strategies to enhance market share. Despite the challenges, management remains optimistic about resuming production of offset printing and tissue paper products in the second half of 2025, which could positively impact future revenues. The company is actively seeking financing options to support its operations and ensure liquidity amid ongoing market pressures.
About IT TECH PACKAGING, INC.
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