Highlights of second quarter performance for IT Tech Packaging Inc.

Release time: 2019-07-18

IT Tech Packaging, Inc. (NYSE MKT: ITP) ("ITP" or the "Company"), today announced highlights of second quarter performance. Total revenue in the second quarter of 2019 was $33.62 million, an increase of 1.5% from the corresponding period in 2018. For the first half of 2019, total revenue was increase of 45.8% from the same period in 2018. In addition, the gross profit growth of the company in the past six months increased by 17.0% compared with the same period of last year. The growth of gross profit was primarily due to increased sales volume of corrugating medium paper, offset printing paper, and tissue paper and the decreased costs of raw material.


Mr. Zhenyong Liu, Chairman and Chief Executive Officer of the Company, commented, “With sales volume increasing by 32.8% year-over-year and reaching the highest level since the first quarter of 2017, our 2019 second quarterresults highlighted continued recovery of our business. Despite continued downward trend in ASPs that offset the increases in sales volume for both CMP and offset printing paper, we managed to grow our top line by 1.4% and made a successful turnaround, thanks to solid contribution from offset printing paper products and tissue paper products that we commenced production by the end of 2018. Looking forward, we expect the market demand and the overall product price in our target regions will remain stable in the remainder of the year.”


Starting in 2019, ITP resumed the product of tissue paper. With the advanced production line, refined management, and due to the decline of raw material cost, tissue paper production generated revenue of $1.19 million in the second quarter. The new production line of tissue paper satisfied the diversified development of the company. The tissue paper is life necessity. With the lower raw material cost and the expanding demand, ITP’s joining the field would improve the company’s profitability.

While the paper industry is in a sufficient competition, the market displayed a high degree of concentration, so the market share was divided by some leading corporates in the field. As a leading corporate in the paper industry, ITP should continue to enhance its influence and expand new market.