BAODING, China, May 10, 2024 /PRNewswire/ -- IT Tech Packaging, Inc. (NYSE:ITP) ("IT Tech Packaging" or the "Company"), a leading manufacturer and distributor of diversified paper products in North China, today announced its unaudited financial results for the first quarter ended March 31, 2024. Mr. Zhenyong Liu commented: "In the first quarter of FY2024, we realized revenue of approximately $6.86 million with a profit of $0.40 million. During the reporting period, domestic packaging paper suffered sluggish demand and prices. In addition, the increase in production capacity of the industry peers, more intense competition from import of finished products and interest rate hikes had posed persistent pressure on the industry. Despite these daunting challenges, China is actively launching various policies to simulate the economy and support enterprises, which is believed to be effective in boosting investment and domestic demand, thereby improving the business environment of the packaging paper industry. Looking forward, we will continue to optimize the raw material structure and minimize the purchase price to ensure production efficiency and consistent quality. We also will explore new products and new markets with appropriate price adjustments to capture greater market share. Meanwhile, we believe that together with the above measures, and better control of the inventory and working capital as well as cash flow, we will make the company a healthy operation in the near future." First Quarter 2024 Unaudited Financial Results For the Three Months Ended March 31,  ($ millions) 2024 2023 % Change  Revenues 6.86 19.79 -65.32 %  Regular Corrugating Medium Paper ("CMP")* 5.75 16.47 -65.08 %  Light-Weight CMP** 1.08 3.06 -64.83 %  Offset Printing Paper - - n/a  Tissue Paper Products - 0.22 n/a   Face Masks - 0.04 n/a  Gross profit 0.40 -0.28 224.08 %  Gross profit margin 5.81 % -1.40 % 7.21 pp****  Regular Corrugating Medium Paper ("CMP")* 5.68 % 1.93 % 3.75 pp****  Light-Weight CMP** 3.32 % 3.96 % -0.64 pp****  Offset Printing Paper - - n/a  Tissue Paper Products*** - -316.80 % n/a  Face Masks - -7.97 % n/a  Operating income -3.50 -2.77 -26.31 %  Net loss -3.75 -2.73 -37.08 %  EBITDA -0.02 1.21 -101.65 %  Basic and Diluted earnings per share -0.37 -0.27 -37.04 %  * Products from PM6  ** Products from PM1  *** Products from PM8 and PM9  **** pp represents percentage points   Revenue decreased by 65.32% to approximately $6.86 million, mainly due to the production suspension of corrugating medium paper ("CMP") in January and February of 2024, and production suspension of tissue paper products in the first quarter of 2024. Gross profit was approximately $0.40 million, compared with gross loss of $0.28 for the same period of last year. Total gross profit margin increased by 7.21 percentage point to 5.81%.   Loss from operations was approximately $3.50million, compared to loss from operations of approximately $2.77 million for the same period of last year. Net loss was approximately $3.75 million, or loss per share of $0.37, compared to net loss of approximately $2.73 million, or loss per share of $0.27, for the same period of last year. Earnings before interest, taxes, depreciation and amortization ("EBITDA") was approximately negative $0.02 million, compared to $1.21 million for the same period of last year. Revenue For the first quarter of 2024, total revenue decreased by 65.32%, to approximately $6.86 million from approximately $19.79 million for the same period of last year. This was mainly due to production suspension of corrugating medium paper ("CMP") in January and February of 2024, and production suspension of tissue paper products in the first quarter of 2024. The following table summarizes revenue, volume and ASP by product for the first quarter of 2024 and 2023, respectively: For the Three Months Ended March 31, 2024 2023 Revenue($'000) Volume(tonne) ASP($/tonne) Revenue($'000) Volume(tonne) ASP($/tonne)  Regular CMP 5,751 15,640 368 16,468 41,663 395  Light-Weight CMP 1,076 3,030 355 3,060 8,019 382  Offset Printing Paper - - - - - -  Tissue Paper Products - - - 223 191 1,167  Total 6,827 18,670 366 19,751 49,873 396 Revenue($'000) Volume(thousandpieces) ASP($/thousandpieces) Revenue($'000) Volume(thousandpieces) ASP($/thousandpieces)  Face Masks - - - 35 1,105 32 Revenue from CMP, including both regular CMP and light-Weight CMP, decreased by 65.04%, to approximately $6.83 million and accounted for 100% of total revenue for the first quarter of 2024, compared to approximately $19.53 million, or 98.67% of total revenue for the same period of last year. The Company sold 18,670 tonnes of CMP at an ASP of $366/tonne in the first quarter of 2024, compared to 49,682 tonnes at an ASP of $393/tonne in the same period of last year. Of the total CMP sales, revenue from regular CMP decreased by 65.08%, to approximately $5.75 million for the first quarter of 2024, compared to revenue of approximately $16.47 million for the same period of last year. The Company sold 15,640 tonnes of regular CMP at an ASP of $368/tonne during the first quarter of 2024, compared to 41,663 tonnes at an ASP of $395/tonne for the same period of last year. Revenue from light-weight CMP decreased by 64.83%, to approximately $1.08 million for the first quarter of 2024, compared to revenue of approximately $3.06  million for the same period of last year. The Company sold 3,030 tonnes of light-weight CMP at an ASP of $355/tonne for the first quarter of 2024, compared to 8,019 tonnes at an ASP of $382/tonne for the same period of last year. Revenue from offset printing paper was $nil  for the first quarter of 2024 and 2023. Revenue from tissue paper products was $nil and $222,953 for the three months ended March 31, 2024 and 2023, respectively. Production of tissue paper products was suspended during the first quarter of 2024. Revenue generated from selling face mask were $nil and $35,637 for the three months ended March 31, 2024 and 2023, respectively. Gross Profit (Loss) and Gross Margin Total cost of sales decreased by 67.79%, to approximately $6.46 million for the first quarter of 2024 from approximately $20.07 million for the same period of last year. This was mainly due to the decrease in sales quantity and the decrease in the unit material costs of CMP. Total gross profit was approximately $0.40 million for the first quarter of 2024, compare to the gross loss of approximately $0.28 million for the same period of last year as a result of factors described above. Overall gross profit margin was 5.81% for the first quarter of 2024, compared to gross loss margin of 1.40% for the same period of last year. Gross profit (loss) margins for regular CMP, light-weight CMP, offset printing paper, tissue paper products and face mask products were 5.68%, 3.32%, nil%, nil% and nil%, respectively, for the first quarter of 2024, compared to 1.93%, 3.96%, nil%, -316.80% and -7.97%, respectively, for the same period of last year. Selling, General and Administrative Expenses Selling, general and administrative expenses ("SG&A") increased by 56.32%, to approximately $3.90 million for the first quarter of 2024 from approximately $2.50 million for the same period of last year. Loss from Operations Loss from operations was approximately $3.50 million for the first quarter of 2024, a decrease of 26.31%, from $2.77 million for the same period of last year. Operating loss margin was 51.02% for the first quarter of 2024, compared to 14.01% for the same period of last year. Net Loss Net loss was approximately $3.75 million, or loss per share of $0.37 for the first quarter of 2024, compared to $2.73 million, or loss per share of $0.27 for the same period of last year. EBITDA EBITDA was approximately $-0.02 million for the first quarter of 2024, compared to  $1.21 million for the same period of last year. Note 1: Non-GAAP Financial Measures In addition to our U.S. GAAP results, this press release includes a discussion of EBITDA, a non-GAAP financial measure as defined by the Securities and Exchange Commission ("SEC"). The Company defines EBITDA as net income before interest, income taxes, depreciation and amortization. EBITDA is a key measure used by management to evaluate our results and make strategic decisions. Management believes this measure is useful to investors because it is an indicator of operational performance. Because not all companies use identical calculations, the Company's presentation of EBITDA may not be comparable to similarly titled measures of other companies, and should not be viewed as an alternative to measures of financial performance or changes in cash flows calculated in accordance with the U.S. GAAP. Reconciliation of Net Income to EBITDA (Amounts expressed in US$)  For the Three Months Ended March 31,  ($ millions) 2024 2023  Net loss -3.75 -2.73  Add: Income tax 0.04 -          Net interest expense 0.21 0.25          Depreciation and amortization 3.48