IT Tech Packaging, Inc. Updates on Non-medical Single-Use Face Masks Business
BAODING, China, July 7, 2020 /PRNewswire/ -- IT Tech Packaging, Inc. (NYSE American: ITP) ("IT Tech Packaging" or "the Company"), a leading manufacturer and distributor of diversified paper products in North China, today announced that it recognized revenue of RMB6.73 million through June 30, 2020 from sale of 6.28 million pieces non-medical single-use face masks since launch of the production line at the end of April 2020.
The capacity of the non-medical single-use face mask production has ramped up to approximately 100,000 pieces per day to the market. We sold a total of 6,279,780 pieces single-use masks between the end of April and the end of June and we recorded a total sales of RMB 6.73 million, with gross margin of approximately 60%, which is higher than the anticipated 40% when launching the production in April. The orders are increasing at a robust pace from our purchasing partners and the products are being sold to institutions, drugstores and supermarkets in Hebei Province.
Mr. Zhenyong Liu, the CEO and Chairman of the Company commented, "We are pleased our team opened up an outlet to our face mask products so efficiently, leveraging the existing market network. Moreover, as a make-to-order enterprise with decades years' experience, our effective cost management system has enabled us to maintain a relatively high profit margin. The demand for protective necessaries such as single-use masks have been booming again due to recent relapses of COVID-19 in Beijing and some areas of Hebei Province. As people's awareness to infection risks increases, wearing single-use masks in densely packed locations such as schools, offices, workshops and public vehicles is becoming normal in China. As such, we expect increased demand beginning in September when students resume classes. Therefore, we believe our production and sales will continue to increase."
About IT Tech Packaging, Inc.
Founded in 1996, IT Tech Packaging, Inc. is a leading manufacturer and distributor of diversified paper products in North China. Using recycled paper as its primary raw material (with the exception of its tissue paper products), ITP produces and distributes three categories of paper products: corrugating medium paper, offset printing paper and tissue paper products. With production based in Baoding and Xingtai in North China's Hebei Province, ITP is located strategically close to the Beijing and Tianjin region, home to a growing base of industrial and manufacturing activities and one of the largest markets for paper products consumption in the country. ITP has been listed on the NYSE American since December 2009.
Safe Harbor Statements
This press release may contain forward-looking statements. These forward-looking statements involve inherent risks and uncertainties that could cause actual results to differ materially from those projected or anticipated, including risks outlined in the Company's public filings with the Securities and Exchange Commission, including the Company's latest annual report on Form 10-K. All information provided in this press release speaks as of the date hereof. Except as otherwise required by law, the Company undertakes no obligation to update or revise its forward-looking statements.
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