BEIJING--(BUSINESS WIRE)--IT Tech Packaging, Inc. (NYSE: ITP) ("ITP" or the "Company"), announced highlights of its Q2 performance. The total revenue in the second quarter of 2019 was $33.62 million, an increase of 1.5% from the corresponding period in 2018. The total revenue of the first half of 2019 increased by 45.8% from the same period in 2018. In addition, due to increased sales volume of corrugating medium paper, offset printing paper, and tissue paper and the decreased costs of raw materials, the gross profit of the Company in the past six months increased by 17.0% compared with the same period of last year.
“The second quarter of 2019 witnessed a 32.8% year-on-year increase in overall sales, reaching the highest level since the first quarter of 2017. This strong performance reflects the continued recovery of our business,” said Mr. Zhenyong Liu, CEO and Chairman of ITP. “Despite the continued fall of ASPs which offsets the increases in sales of CMP and offset printing paper, we still managed to make revenue increase by 1.4%, making a successful turnaround. This is due to the solid contribution from offset printing paper products and tissue paper products that we commenced production in at the end of 2018. Looking forward, the market demand and the overall product price in our target regions are expected to remain stable for the rest of the year.”
Starting in 2019, ITP resumed the production of tissue paper. With the advanced production line, refined management, and due to the decline of raw material cost, tissue paper production generated revenue of $1.19 million in the second quarter. The new production line of tissue paper satisfied the diversified development of the company. The tissue paper is a daily necessity. With the lower raw material cost and the expanding demand, ITP’s joining the field would improve the company’s profitability.
While the paper industry faces keen competition, the market displays a high degree of concentration, and is mostly dominated by leading corporations in the field. As a leader in the paper industry, ITP will continue to enhance its influence and expand into new markets.