ITP earnings analysis
What we found in ITP's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
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.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- 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%).
- 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.
- 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).
- 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).
- 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).
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- 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.
- 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.
- 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.
- 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."
- 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.
- 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.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $-0.16
- Gross margin
- 5.136%
- Operating margin
- -7.111%
- 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 they said about what is next.
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.
The filing reads worse than the one before it.
What came before.
- 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…
- 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. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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