10-Q · May 9, 2025
IT Tech Packaging reported revenue of $10.90M for the quarter ended March 31, 2025 (up from $6.86M YoY but down vs. the prior quarter), a gross profit of $84,086 and a net loss of $3.50M (EPS $(0.35)). Management…
Earnings analysis · 10-Q
ITP earnings analysis
Filed August 14, 2025 · Our reading of the company's report
The latest report
IT Tech Packaging reported Q2 2025 revenue of $24.79M, down from $26.25M in Q2 2024, with gross profit of $1.27M and an operating loss of $1.76M driving a $0.16 per-share loss. Balance sheet shows rising receivables…
Read full summary
IT Tech Packaging reported Q2 2025 revenue of $24.79M, down from $26.25M in Q2 2024, with gross profit of $1.27M and an operating loss of $1.76M driving a $0.16 per-share loss. Balance sheet shows rising receivables ($1.84M) and inventories ($5.09M) and management flagged substantial doubt about going concern, while cash and restricted cash ended at $7.51M after an equity raise of $1.06M.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $-0.16
- Segment
- Dongfang Paper & Tengsheng Paper — $24,794,641 (100% of revenue; Q2 2024 revenue $26,249,788, down $1,455,147 or ≈-5.5%)
What stood out
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Revenue largely stable quarter-over-year
Q2 revenue was $24,794,641 versus $26,249,788 in Q2 2024, a decline of $1,455,147 (≈-5.5%).
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Ending cash and restricted cash increased
Cash, cash equivalents and restricted cash ended at $7,509,355 compared with beginning cash of $6,950,576, a net increase of $558,779 for the period.
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Equity financing raised incremental liquidity
Company issued 6,899,500 shares to an institutional investor and recorded proceeds from issuance of shares of $1,063,124 (see financing activities).
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Gross profit remained positive
Gross profit for the quarter was $1,273,745, representing a gross margin of 5.1% (1,273,745 / 24,794,641).
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VIE operations remain dominant
Revenue generated from Dongfang Paper and Tengsheng Paper accounted for 100% of the Company’s total revenue (Q2 revenue $24,794,641).
What to watch
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Operating performance deteriorated sharply
Operating (loss) for Q2 was $(1,763,030) versus operating income of $547,752 in Q2 2024, a negative swing of $2,310,782.
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EPS worsened year-over-year
Diluted loss per share was $(0.16) for the quarter versus $(0.01) in Q2 2024, a deterioration of $0.15 per share.
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Large increases in working capital tied to inventory and receivables
Accounts receivable increased to $1,841,007 from $287,576 (up $1,553,431) and inventories rose to $5,094,810 from $2,351,876 (up $2,742,934) versus Dec 31, 2024.
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Net working capital weak excl. VAT recoverable; going concern flagged
Management reports working capital of $11,302,966 including VAT recoverable, but net working capital excluding VAT recoverable was a deficit of $1,906,169 and "there was a substantial doubt about the ability of the Company to continue as a going concern."
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Six-month operating cash flow negative
Net cash used in operating activities for the six months ended June 30, 2025 was $(1,111,313), and purchases of property and equipment were $(29,896), implying free cash flow of approximately $(1,141,209) for the six-month period.
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Share count dilution
Shares outstanding increased to 16,965,420 as of June 30, 2025 from 10,065,920 as of Dec 31, 2024 following issuance of 6,899,500 shares to an institutional investor.
Management's outlook
No numeric forward guidance provided. MD&A states the Company "plans to optimize its raw material structure and stabilize manufacturing capacity utilization," will "explore new products and adjust pricing strategies," and will "strategically utilize financing quotas from the capital market" to address liquidity and operations; outlook effectively deferred to execution of this business plan.
Earlier filings 4
10-K · March 27, 2024
IT Tech Packaging (ITP) is a Nevada holding company that conducts operations in China through a consolidated VIE (Dongfang Paper) and focuses on corrugating medium paper, offset printing paper, tissue paper and medical…
10-Q · May 11, 2023
IT Tech Packaging reported quarterly revenue of $19,790,877 (Q1 2023) versus $15,481,618 in Q1 2022, with a gross loss of $276,999 and operating loss of $2,772,361. The company generated positive operating cash flow of…
10-K · March 24, 2023
IT Tech Packaging (ITP) is a Nevada holding company that conducts substantially all operations in China through a consolidated VIE (Dongfang Paper). The 10‑K highlights a material VIE structure (VIE accounts for 88.54%…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.