IT Tech Packaging, Inc. reported a revenue of $75.8 million for the fiscal year ending December 31, 2024, a decrease of 12.4% from $86.5 million in the previous year. The decline was attributed to reduced sales volumes and average selling prices (ASP) of its primary products, including corrugating medium paper (CMP), offset printing paper, and tissue paper products. The total quantity sold across these categories fell to 220,552 tonnes, down from 230,601 tonnes in 2023. The company also experienced a significant drop in ASP for CMP, which decreased from $368 per tonne in 2023 to $345 per tonne in 2024.
In terms of profitability, IT Tech Packaging reported a net loss of $9.8 million for 2024, slightly improved from a loss of $9.9 million in 2023. The gross profit margin increased to 8.8% from 1.2% the previous year, primarily due to lower material costs, despite the decrease in ASP. Selling, general, and administrative expenses rose by 63.1% to $14.8 million, largely due to increased depreciation costs and legal liabilities. The company’s total assets decreased to $177.5 million in 2024 from $194.7 million in 2023, with liabilities also declining to $21.5 million from $26.4 million.
Strategically, IT Tech Packaging has been focusing on optimizing its raw material structure and enhancing manufacturing capacity utilization. The company is also exploring new product lines and adjusting pricing strategies to capture a larger market share. As of December 31, 2024, the company had 383 employees, a slight increase from the previous year, and continues to maintain a strong presence in the North China market, particularly in Hebei Province.
Operationally, the company has faced challenges, including the suspension of production for offset printing paper and tissue paper products during 2024. The production of CMP was also temporarily halted at the beginning of the year but resumed in March. The company’s cash and cash equivalents increased to $6.95 million, up from $4.39 million in 2023, reflecting a net cash provided by operating activities of $6.3 million, despite a significant decrease in cash flow from investing activities.
Looking ahead, IT Tech Packaging aims to stabilize its operations and improve financial performance by implementing cost control measures and enhancing product offerings. The company acknowledges the uncertainties in the regulatory environment in China, particularly regarding foreign investment laws and cybersecurity regulations, which could impact its operations and market access. The management remains committed to navigating these challenges while focusing on long-term growth and profitability.
About IT TECH PACKAGING, INC.
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