ITP - Earnings call transcript Q1 2021 | IT Tech Packaging, Inc.

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Operator

Hello ladies and gentlemen and welcome to participate in IT Tech Packaging's First Quarter 2021 Earnings Conference Call. At this time, I would like to inform you that this conference is being recorded and that all participants are in a listen-only mode.

Joining us today are Mr. Zhenyong Liu, IT Tech Packaging's Chairman and Chief Executive Officer; and Ms. Jing Hao, the Company's Chief Financial Officer. Mr. both from Remarks Ms. and Liu will be interpreters. English delivered in by Hao website XXXX its via be IT company's announced quarter found www.itpackaging.cn. financial the can Tech Packaging which first results yesterday press on at release

over the will brief then the operational XXXX First, Mr. results. the will you quarter review Liu first Hao financial company's on key highlights company's Ms. and

business or required industry. subsequent and as may are reflect except undertakes company The no changes by of meaning Harbor the Securities These the and events remarks about draw Safe statements Harbor and the risks our or of we including Before market involve based contain statements medium Securities Act statements attention in in products; and forward-looking law. obligation and your initiatives or Litigation and segments; to attract start, Safe and development announcement its with statements, filings to but management statements to expansion; are on current I competitors; statements business corrugating limited update expansion of of current from would paper, to company historical of qualified and expectations, to, projections forward-looking Commission. assumptions, company's new research other within products; and economic anticipated senior Private acceptance the ability or estimates, XXXX. retain staff; the personnel introduce implement Management's facts potential risks be ability unknown in uncertainties provisions the its to other like prepared paper, to forward-looking detailed conditions; to and the capacity the paper the and general Exchange the revenues tissue company's of to Reform the new statement. than circumstances All the actions and and known not forward-looking printing ability company's offset current

that assure cannot featuring anticipated forward-looking and in remarks company is it there discussions be Please it are prepared will results. release turn financial out materially on reconciliation interest, actual expectation or amortization. Please earnings may the for to document be at press download statements expectations www.itpackaging.cn. from measures now a reasonable, you and income. net differ believes that are that presentation from management's expressed results and the available correct cautioned taxes, these that depreciation, the will complete or is this website our non-GAAP Although There note refer investors company's EBITDA for a of EBITDA before to and the

all and His numbers quoted EverGreen in from I refer presentation our US would year-over-year to comments delivered over As Zhou reminder, English be like will Mr. by unless Liu. in call Dahong a in turn dollars Relations. stated. to are to kind comparisons now Investor the all otherwise comparisons

Janice Wang

morning and call. operator for Thanks our XXXX everyone. you, first Thank joining quarter good earnings conference

making quarter. We in to for of sales the volume products improvements continued CMP this

sales increased products products. posting XX.X% CMP a from and impact printing outbreaks of global the paper for fourth quarter quarter revenues recovery COVID-XX quick this XXXX. The average of Our and products. of had total all of average over million, selling from increase volume growth of prices increase overall sales selling resulted all categories categories prices in to $XX.X a XXX.X% from We growing took of from offset XXX.X% XX.X% tissue revenue the pandemic, paper, of of over

fundamental its will tissue greatly production constructions paper as tissue growing products steadily PMX efficiency, our and up on Our of continue the on and we have to and production from is line, strong completed Currently, November domestic improved sales our launch demand December robust PMX tissue performance. in of business have the tissue products new XXXX. we market the been see since production capacity boost working expect paper segment to overall growth paper installation PMXX of affiliated and will equipment. XXXX and that we Amid for expanding paper

expanding In to Biomass power Project addition, of biomass our business high project profit also diversify business technology such we combined generation expect as CHP stable are of to utilizing our and and making. technology the project, and sources modes revenue heat ensure and new

please turn to results. English Now comment the Her (sic) I delivered in will will Wang. Hao, our the call quarter review by Jing colleague CFO, Ms. Janice will comments financial fourth on be and go over Janice ahead. who my [first]

Jing Hao

for the on call. everyone being Thanks Language] [Foreign

Next of some to products. make Also key I'm associated will will refer XXXX. which I first various clear specific financial of occasionally production for behalf lines will products the referring summarize on I quarter with management results to. team the I

provided numbering the production lines reference number on system for XX. our slide For

at let's Please look performance for XXXX. financial X. first the quarter our Slide to number Now turn of

and For CMP increase of ASPs quarter increase the in paper sales products. prices, medium to the selling revenue XXX.X% $XX.X total increased paper printing in average paper and first offset of of to due million CMP and XXXX, tissue volume Corrugating

to Turning X. Slide

to For including was XX.X% $XX.X the [ph] representing revenue of of XX.X% for our regular by $X.X and tonnes by CMP. regular by XX,XXX from quarter increased CMP CMP XXXX, tonnes per million ASP XX,XXX were first increased per CMP. increased CMP and light-weight selling segment the XXX.X% volumes segment to light-weight million, X,XXX regular CMP price or revenue. and light-weight Average $XXX regular total tonnes, CMP CMP CMP CMP generated of was tonne. revenue from ASP $XXX light-weight for products XX.X% to of tonne significantly were million and both which $XX of

X. Turning to Slide

as revenue recognised $XXX of from from tonne. per paper of resulting and quarter first offset ASP the million For X,XXX sales we of printing products, tonnes of $X.X XXXX,

products from revenue tonnes for recognized $X,XXX $X.X million from of quarter XXXX, We the X,XXX paper ASP XX. tissue Slide of an to and per of Turning resulting tonne. first of sales

Slide in mix. first XX Slide and million generated revenue for of XXXX. number from masks the of masks XX. X,XXX quarter revenue changes sold thousand Turning to face pieces We face $$X.XX summarizes selling the our

$X.X increased year of million quarter $XX.X profit period sales loss from for same XXXX, our of of margin by overall For and $X.X cost increase to million XXXX.X% to $XX.X X.X%. last the of million, leading of gross profit total gross total first

first SG&A losses $X.X loss For loss from of the period of last for million was X% XXXX, same to period to margin X.X% by loss operations to the operations compared the from last $X.X year. for Operating $X.X expenses quarter operating XX.X% million were year. same of compared margin of decreased

was per the the diluted year. $X.XX loss net $X.X share, period for For last loss resulting same share net loss $X.X a million in to basic and compare or diluted of net XXXX, of and of per a quarter million, loss first net basic of $X.XX this

million For quarter before decreased million for year. interest, XXXX, amortization of last the million of period the by $X.XX $X.XX same first earnings and taxes, negative from to $X.XX deprecation

XX slide XX. to Moving and

Let’s the sheet liquidity. look at balance and

company short-term As year. respectively, bank XX, $XX.X XXXX, related was the XXXX, XXXX. activities cash of year. first of last by million, of respectively, the in same last and party $X.X million loans, As union cash of March March compared used activities million had $XX.X investing from current used the working $X.X for and compared XXXX. from million million. Net current assets loans, was including activities cash at in $X.X of $XX.X party million and loans cash long-term provided December first XXXX operating to last to year. cash end period December resulting XXXX. current of XX, as as million, million current balances, for capital receivable portion same was and million of XX, related working of of $XX.X $X.X $XX.X period of million of This the as and by million of debt, had million, XX, quarter in of XXXX, the quarter of of the of as to period liabilities to end for activities $XX.X a March $XX.X activities was million Net March $X.X the XXXX to end million $X.X zero $X.X of $X.X including compared resulting deficit and Net $X.X was cash of million net for the XX, million, of compared $XX.X accounts million XXXX compared financing bank for million, $X.XX $X.X financing at $X.XX debt, of to capital XXXX, and XXXX, Net assets Net for loans first million the of compared compared million company credit quarter long-term in a inventory liabilities was provided $XX.X net of million same to current the operating

Operator

thank listening you call first conference you earnings today in. for attending Good-bye. call. we all Packaging's IT XXXX Thank Tech quarter This our concludes for and

IT Tech Packaging (ITP) 12 May 212021 Q1 Earnings call transcript