Slide 1: IT Tech Packaging, Inc. Investor Presentation
IT Tech Packaging, Inc. Investor Presentation January 2021
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and
Slide 3: Table of Contents
01 Company Introduction 02 Business Overview Table of Contents 03 Industry Overview 04 Key Financials
Slide 4: Equity Snapshot
Equity Snapshot Ticker Symbol ITP Stock Price (01/08/21) $0.67 52-Week Price Range $0.39-$1.39 Market Cap. $15.7M Shares Outstanding 28.5M Revenues (Nine months ended Sep 30, 2020) $68M Net Income (Nine months ended Sep 30, 2020) $(3.9)M Gross Margin(Nine months ended Sep 30, 7.2% 2020) Cash and Cas
Slide 5: Corporate Structure
Corporate Stucture IT Tech Packaging Inc. (A Nevada Company) Shengde Holdings Inc. (A Nevada Company) Baoding Shengde Paper Co., Ltd (“Baoding Shengde”, a PRC Company) Sere Hebei Baoding Dongfang Paper Milling Company Limited (Dongfang Paper, a PRC Company) IT Tech PACKAGING
Slide 6: Corporate Milestones and Recent Events
Corporate Milestones and Recent Events Key Milestones Recent Events 1996 December 2018, Hebei Baoding Dongfang Paper Milling Company Limited Commercial launch of the first tissue paper production line (PM 8) (“Dongfang Paper”) was established in Xushui County, Baoding City, Hebei Province November 2
Slide 7: Management
Management Jing Hao Zhenyong Liu Dahong Zhou Chief Executive Officer and Chairman Chief Financial Officer of the Board Secretary • Chief Financial Officer of the • A member of the Board of Directors • Secretary of the company since 2007 company since 2014 and Chairman of the Board of • Executive Man
Slide 8: Company Overview
Company Overview A leading paper manufacturer in North China located in Baoding City, Hebei Province • 9 registered trademarks • Using recycled paper as primary raw material for CMP and OPP • Produces and distributes four categories of paper products: packaging paper(corrugating medium paper), offse
Slide 9: Our Products
Our Products Corrugating medium paper (CMP) • Used in the manufacturing of cardboard. • 85.61% of total paper production quantities and 77.22% of total revenue in 2019 • Raw materials include recycled paper board and certain supplementary agents • 2 production lines, PM6 and PM1 • Light-weight CMP p
Slide 10: Manufacturing Process
Manufacturing Process Corrugating Medium Paper and Offset Printing Paper Two stages of manufacturing Pulping Paper Making Base Tissue Paper 1. Commercial pulp 2. Repulping 3. Paper making 4. Rewinding 5. Paper cutting 6. Packaging
Slide 11: Customers and Suppliers
Customers and Suppliers Customers Suppliers • Companies making corrugating • Recycled paper board and unprinted cardboards and printing companies recycled white scrap paper from • Largest customer is a printing domestic recycling stations company in Tianjin City • Annual raw materials supplier contr
Slide 12: Our Production Lines
Our Production Lines PM# Paper Product Designed Capacity Location (tonnes/year) PM1 Corrugating medium paper 60,000 Xushui District, Baoding city, Hebei PM2 50,000 province Offset printing paper PM3 Offset printing paper 40,000 PM4 Digital photo paper ** Xushui District, Baoding city, Hebei PM5 ** p
Slide 13: Our Competitive Edge
Competitive Strength OUR COMPETITIVE EDGE Regional advantage (Northern China) • One of the leading papermaking enterprises in Hebei Province. • Our proximity to large urban centers in northern China, Beijing and Tianjin, gives us access to a large market to sell our products Cost Advantage • Lower f
Slide 14: Clean Manufacturing
Competitive Strength CLEAN MANUFACTURING Raw Materials • Eco-friendly recycled papers • Minimize impact on the environment • Reduce costs By- Product Recycle • Recycles paper fiber sludge • Improves paper's toughness and stiffness Sewage Processing System • Daily processing capacity of up to 50,000
Slide 15: Awards & Certificates
Awards & Certificates September 2013: "Reliable Enterprise of Hebei Province Certification". April 2010: Obtained new ISO 9001:2008 Quality Management System Certification and ISO 14001:2004 Environmental Management System Certification 2007: A PRC Import License for Solid Wastes by the State
Slide 16: Industry Overview
Industry Overview 2,700 paper and paper board manufacturers (down from 3,700 in 2010) in China, with a total output of 107.65 million tonnes in 2019 Total domestic consumption was 107.04 million tonnes in 2019 The output of paper and paper board maintained an average growth rate of approximate
Slide 17: Key Metrics
Key Metrics (nine months ended September 30) CMP Offset Printing Paper Tissue Paper Revenue and Gross Margin Revenue and Gross Margin Revenue US$ Millions 8.4% US$ Millions US$ Millions 7.3% 29.8% 5.8 19.7% 26% 4.6 52.4 13.3 42.6 11.2 3% 7.4 11.6 7.10 13.7 % 2020 2019 2020 2019 2020 2019 Regular CMP
Slide 18: Income Statement
IT Tech Income Statement vec. Revenues Cost of sales Gross Profit Selling, general and administrative expenses Gain on acquisition of a subsidiary Income (Loss) from Operations Other Income (Expense): Interest income Subsidy income Interest expense Loss on derivative liability (Loss) Income before I
Slide 19: Balance Sheet
Balance Sheet (US$) September 30, 2020 September 30, 2019 Current Assets Cash and cash equivalents 8,209,905 5,837,745 Restricted cash - - Accounts receivable 3,472,374 3,119,311 Inventories 8,582,912 1,607,463 Prepayments and other current assets 9,930,262 11,613,241 Total current assets 30,410,645
Slide 20: Statement of Cash Flows
Statement of Cash Flows Nine Months Ended (US$) September 30, 2020 2019 Net Cash Provided by (Used in) Operating Activities 2,369,487 4,599,034 Net Cash Provided by (Used in) Investing Activities (2,571,949) (6,449,181) Net Cash Provided by( Used in) Financing Activities 2,241,043 (5,224,295) Effect
Slide 21: Thank You!
Thank You! Contact Information: Email: ir@itpackaging.cn ir@changqingconsulting.com