IT Tech Packaging, Inc.
Third Quarter 2024
Financial Results Presentation
Safe Harbor Statement
This presentation contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact in this announcement are forward-looking statements, including but not limited to, anticipated revenues from the digital photo paper business segment; the actions and initiatives of current and potential competitors; the Company's ability to introduce new products; the Company's ability to implement the planned capacity expansion of corrugate medium paper; market acceptance of new products; general economic and business conditions; the ability to attract or retain qualified senior management personnel and research and development staff; and other risks detailed in the Company's filings with the Securities and Exchange Commission. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations, assumptions, estimates and projections about the companies and the industry. The Company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or to changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward looking statements are reasonable, it cannot assure you that its expectations will turn out to be correct, and investors are cautioned that actual results may differ materially from the anticipated results.
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Agenda
- Key Highlights
- Financial & Business Review
- Operational & Business Updates
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KEY HIGHLIGHTS
Key Highlights for Q3 2024
Revenue increased by 59.03% to approximately $25.08 million, This was mainly due to the increase of sales volume of corrugating medium paper ("CMP"), partially offset by the decrease in average selling prices ("ASP") of CMP.
Gross profit increased by 1351.37% to approximately $1.92 million. Total gross profit margin increased by 8.61 percentage point to 7.64%.
Loss from operations was approximately $1.46 million, compared to approximately $2.48 million for the same period of last year.
Net loss was approximately $1.97 million, or loss per share of $0.20, compared to net loss of approximately $1.98 million, or loss per share of $0.20, for the same period of last year.
Earnings before interest, taxes, depreciation and amortization ("EBITDA") was approximately $2.03 million, compared to$1.69 million for the same period of last year.
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Key Highlights for the nine months ended September 30, 2024
Revenue decreased by 11.26%, to approximately $58.20
million from approximately $65.58 million for the same period of last year. This was mainly due to the decrease in ASP of CMP, partially offset by the increase in sales quantity of regular CMP.
Gross profit increased by 644.60% YoY to $5.58 million, primarily due the decrease in unit cost of materials of CMP, partially offset by the decrease in ASP of CMP. Overall gross margin up 8.45 percentage points to 9.59%.
Loss from operations was $4.42 million, compared to loss from operations of $5.78 million for the same period of last year.
Net loss was $5.80 million, or loss per share of $0.58, compared to net loss of $5.96 million, or loss per share of $0.59, for the same period of last year.
Earnings before interest, taxes, depreciation and amortization ("EBITDA") was $5.94 million, compared to EBITDA of $5.73 million for the same period of last year.
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FINANCIAL & BUSINESS REVIEW
Revenue
US$ Millions
-1.0% | 19.6% | 5.81% | 12.44% | 7.71% |
-15.8% | -18.1% | 2.09% | 3.91% | |
-51.0% |
32.5 | 26.2 | 25.1 | |||||||||||||||||||
15.8 | |||||||||||||||||||||
6.9 | |||||||||||||||||||||
Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 | |||||||||||||||||
Revenue | Gross Margin | Operating Margin | |||||||||||||||||||
Q3 2024
- Revenue increased by 59.03% YoY to $25.08 million, due to the increase of sales volume of corrugating medium paper ("CMP"), partially offset by the decrease in average selling prices ("ASP") of CMP.
- Overall gross margin up 8.68 percentage points YoY to 7.71%.
- Operating loss margin down 11.84 percentage points YoY to 3.91%.
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Corrugating Medium Paper (CMP)
Revenue and Gross Margin
Sales Volume and ASP
US$ Millions
12.3%
26.2
3.8% | 5.4% | 5.3% | ||||
20.5
15.4
6.8
3.5 | 3.4 | 4.2 | ||||||||||
1.1 | ||||||||||||
25.0 | Tonnes | ||||||||||
Thousands | |||||||||||
7.4% | |||||||||||
4.1
Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
Revenue | LW CMP Rev | Gross Margin |
350 | 362 |
350 340
56.8
44.4
10.2 9.8
368 350
355 337
75.4
18.7
12.6
3.0
337
74.9324
12.8
Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 | |||||
Total CMP Sale volume | LW CMP volume | ||||||||
Reg CMP ASP | LW CMP ASP | ||||||||
Q3 2024 CMP (includes both Regular and Light-Weight CMP)
- Revenue: up 62.38% YoY to $25.04 million, accounted for 99.85% of total revenue.
- Sales volume: up 68.67% YoY to 74,884 tonnes.
- ASP: Regular CMP down 3.71% to $337/tonne.
- ASP: Light-Weight CMP down 4.71% to $324/tonne.
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Offset Printing Paper
Revenue and Gross Margin
Millions | 7.5% | 0.0% | 0.0% | 0.0% | ||||||||||||||||
US$ | ||||||||||||||||||||
0.1 | ||||||||||||||||||||
0.0 | 0.0 | 0.0 | ||||||||||||||||||
-41.0% | ||||||||||||||||||||
Q3 2023 | 0.0 | Q1 2024 | Q2 2024 | Q3 2024 | ||||||||||||||||
Q4 2023 | ||||||||||||||||||||
Revenue | Gross Margin | |||||||||||||||||||
Thousands Tonnes
Sales Volume and ASP
407
0.2
0 | 0 | 0 | 0 | 0.0 | |||||||||||||
0.0 | 0.0 | 0.0 | |||||||||||||||
Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 | |||||||||||||
Sales Volume | ASP | ||||||||||||||||
Q3 2024 Offset Printing Paper
- Revenue: was $nil.
- Sales volume: nil.
- ASP: $nil.
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