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IT Tech Packaging, Inc. has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing includes financial statements for the quarter, showing an increase in sales to $25,081,500 from $15,771,560 in the same quarter the previous year. The increase is attributed to a rise in sales volume of corrugating medium paper (CMP), despite a decrease in average selling prices.
Cost of sales for the quarter was $23,163,835, compared to $15,907,217 in the same quarter of the previous year. The increase is due to higher sales volumes of CMP.
The company reported a gross profit of $1,917,381 for the quarter, compared to a gross loss of $153,223 in the previous year, with the improvement attributed to increased sales volumes.
Selling, general, and administrative expenses increased to $3,381,502 from $2,334,746, primarily due to higher depreciation of idle fixed assets and accrued liabilities for legal proceedings.
Net loss for the quarter was $1,973,946, compared to $1,975,368 in the previous year. The slight decrease in loss is due to improved gross profit.
Cash provided by operating activities was $2,831,111, while cash used in investing and financing activities was $315,152 and $2,112,706, respectively.
IT Tech Packaging had a working capital of $32,974,897 as of September 30, 2024. The company acknowledges its dependence on positive operating results and potential financing to meet future obligations.
The filing also details various financial agreements, including short-term and long-term loans with local banks and credit unions in China.
IT Tech Packaging does not anticipate cash dividend payments to common stockholders in the near future.
The company identified a legal proceeding involving a lawsuit filed by FT Global Capital, Inc., which could have a material adverse impact on its business.
IT Tech Packaging continues to focus on its core paper production business, with an emphasis on managing costs and improving operational efficiency.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the IT Tech Packaging Inc. quarterly 10-Q report dated November 15, 2024. To report an error, please email earnings@qz.com.