Diversified paper products manufacturer IT Tech Packaging has reported a net loss of $10m, or $1.0 per diluted share, in financial year 2023 (FY23), compared to $16.6m, or $1.7 per diluted share, in FY22.
For the year ending 31 December 2023, the company witnessed a decline in total revenue, which dropped by 13.76% to approximately $86.55m.
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The decline was primarily attributed to a reduction in the average selling price of corrugating medium paper (CMP), although this was partially offset by an increase in sales volume in CMP and offset printing paper.
IT posted a gross profit of $1m in FY23, down by 78.97% from the previous year’s figure of approximately $4.75m. Overall gross margin also decreased by 3.6% year-on-year (YoY) to 1.2%.
Its loss from operations was about $9.58m in FY23. Operating loss margin fell 5.8% YoY to 11.1%.
The company recorded earnings before interest, taxes, depreciation, and amortisation EBITDA of approximately $5.61m over the year, from $10.96m in FY22.
In the fourth quarter of 2023, IT reported total revenue of roughly $20.96m, a slight decrease of 1.91% from the same period in the previous year.
The company posted a gross profit of $0.25m, compared to approximately $1.03m for the same period a year ago.
IT chair and CEO Zhenyong Liu said: “In 2023, the company achieved a revenue of $86.55m and a gross profit of $1m. The overall performance improved due to slightly increased sales volume.
“Considering current conditions, including supportive policies and the implementation of plastic-restriction orders, we expect a rise in domestic [Chinese] demand for packaging paper. In the long run, we will focus on acquiring new customers, reducing costs and improving efficiency and ensuring safe and environmentally friendly production.”
