IT Tech Packaging, Inc. reported its financial results for the third quarter and the nine months ended September 30, 2024, showing significant changes in revenue and profitability compared to the previous fiscal period. The company generated revenues of $25.1 million for the three months ended September 30, 2024, marking a 59.03% increase from $15.8 million in the same period of 2023. This growth was primarily driven by a substantial increase in sales volume of corrugating medium paper (CMP), despite a decrease in average selling prices.

For the nine months ended September 30, 2024, total revenues were $58.2 million, a decline of 11.26% from $65.6 million in the prior year. The decrease was attributed to a reduction in sales of offset printing paper and tissue paper products, which were suspended due to rising natural gas prices. The company reported a gross profit of $1.9 million for the third quarter, a significant recovery from a gross loss of $153,223 in the same quarter of 2023. For the nine-month period, gross profit increased to $5.6 million, up from $749,636 in the previous year.

Despite the improvements in gross profit, IT Tech Packaging recorded a net loss of $1.97 million for the third quarter, slightly better than the net loss of $1.98 million in the same quarter of 2023. For the nine months, the net loss was $5.8 million, a modest decrease from $5.96 million in the prior year. Selling, general, and administrative expenses rose to $3.4 million for the third quarter, up 44.83% from $2.3 million in 2023, contributing to the ongoing losses.

The company’s total assets decreased to $190 million as of September 30, 2024, from $194.7 million at the end of 2023. Current assets increased to $33 million, driven by higher cash and accounts receivable, which rose to $4.4 million and $1.7 million, respectively. Inventory levels also increased significantly, reflecting a strategic buildup in anticipation of future sales.

Strategically, IT Tech Packaging continues to focus on its core subsidiaries, Dongfang Paper and Tengsheng Paper, which accounted for 100% of total revenue in the third quarter. The company has also faced legal challenges, including a lawsuit from FT Global Capital, which may impact its financial condition and operations.

Overall, while IT Tech Packaging has shown improvements in revenue and gross profit, it continues to navigate challenges related to production suspensions and rising operational costs.