Q4 2021 IT Tech Packaging Inc Earnings Call

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Hello, ladies and gentlemen, and welcome to Itt's packaging for fourth quarter of 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 the company's chairman and Chief Executive Officer, Mr. John Young Lille and the company's Chief Financial Officer, Ms Jing Hao.

Remarks from both Mr. Lu and MS. Hao will be delivered in English by interpreters I T Tag packaging announces fourth quarter of 2021 financial results via press release on March 15, 2022, which can be found on the company's website at Triple W. Dot I T packaging towards.

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Mr. Lu will start today's presentation with an overview for the fourth quarter of 2021 performance then that's how we'll share more details about the company's financial results.

Before we start I'd like to draw your attention to our safe Harbor statement management's prepared remarks contain forward looking statements within the meaning of the safe Harbor provisions of the private Securities Litigation Reform Act of 1995.

All statements other than statements of historical fact in its announcement also looking statements, including but not limited to anticipated revenues from the corrugated medium paper tissue paper offset printing paper and Facemasks business segments, the actions and in the.

<unk> of current and potential competitors, the companys ability to introduce new products, the company's ability to implement capacity expansion market acceptance of new products general economic and business conditions. They are.

Please eat to attract or retain qualified senior management personnel and research and development staff and other risks detailed in the company's filings with the Securities and Exchange Commission.

These forward looking statements involve known and unknown risks and uncertainties and are based on current expectations assumptions estimates and projections about the company and the industry. The company entered takes no obligation to update forward looking statements to reflect subsequent all current events.

Oh sitcom stances ought to changes in its expectation, except as maybe required by law.

Although the company believes that the expectations expressed in this forward looking statements are reasonable.

It cannot assure you that this expectation will turn out to be correct and divestitures are cautioned that actual results may differ materially from the anticipated results.

So there is a presentation document featuring management's prepared remarks and is now available for download from the company's website at Triple W. Don I D packaging Dot C N.

Please note that there will be discussions on non-GAAP financial measure or EBITDA or earnings before interest taxes depreciation and amortization.

Refer to our press release for a complete reconciliation of EBITDA to net income.

As a kind reminder, all numbers in our presentation I'll quote it in U S dollars and all comparisons refer to year over year comparisons unless otherwise stated.

At this time I'll like to turn the call over to Mr. Jim Young low chairman and Chief Executive Officer of it Tech packaging his overview will be deliberate in English by conical Tony. Please go ahead.

Thank you operator, and good morning, everyone. Thanks for joining.

Packaging fourth quarter 2801 earnings conference call today.

We provide an overview of the company performance for the fourth quarter and fiscal year of 2021 .

Plenty of kind of one was a remarkable year for <unk> packaging.

Packaging kept off by rapid fulfillment.

Our business execution, and what's reflected athlete achieved a hydro that let's see one 9 million in revenue.

<unk> increased 9% year over year.

Year.

And the 11 million rough property with the aim with 93% year over year.

Once again, we demonstrated the absolute revenue growth and to improve business efficiency in 2020 one.

In fiscal year 2021 we launched a series of initiatives to optimize our revenue structure and diversify our business.

We significantly improved our operating and cost efficiency.

We do see ourself.

General and administrative expense by a 14, 3%.

Well, maintaining the solid growth of overall, south Wally and average selling prices and key products.

Offset printing paper products.

We exceeded our objective for 2021 and we could not be more excited.

The momentum we carry into the fourth quarter and the year ahead.

So I'll continue with <unk>, extending our business scale, we are confident in our ability to execute against our long term debt today.

Capitalizing on our investments in demand generation and customer loyalty to accelerated our profit well.

We firmly believe that our business fundamentals will continue to support our leading position in the industry and well in the foreseeable future.

Thank you again for all your wells and that passion.

Now I'd like to turn the call over to Gene Hall.

CFO .

We review our financials for the fourth quarter.

101.

Our review will be delivered in English by economy.

Thanks, everyone for being on the call on behalf of management team as they summarize some key financial results for the fourth quarter and fiscal year 2021 .

Also the occasional referred to.

Production lines.

Here with me are pushed out.

As I made clear, we just thought that.

Great.

We'll reference.

The number system for our production lines is provided on slide 18.

Now, let's look at our financial performance for the fourth quarter of 'twenty one.

Please turn to slide number seven.

For the fourth quarter of 'twenty.

Total revenue increased by 38, 7%.

So $45 1 million due to the increase in revenue Wally in Sao Paulo in Brazil across 18 medium paper.

Then turning to slide eight.

For the fourth quarter of 2021 .

The C segment, including both regular CMP and light weight CMP.

Generated revenue of $39 7 million, representing 88% of total revenue.

32, 7 million of revenue was from our Regulus down in Q4.

And it's done knowing what's wrong licensee.

He and his sentiment Wally increased by one 4%.

It was six 9933 pounds.

Wage by two 7400, and hence how rapidly the M P.

And the other 543 counts, we're likely to see ASP.

Average selling price or ASP will.

For regular CMP increased by 13, 8%.

500, 959 per tonnes and ASP P.

Well likely see any increments by 32, 2%.

So 500.

<unk> 58 per ton.

Then moving on to slide nine.

Well hook corner of plenty just wondering what the offset printing paper generated revenue of $3 million.

Decreased by $1 9 million.

$39 2 million, 2% from the same store does not.

The offset printing paper wallet thickness.

85%.

So 3900 <unk>.

11 <unk>.

As people offset printing for English by 22, 8%.

So 709 per ton.

Then turning to slide 10.

For the fourth quarter of 2021 .

Pick a product generated revenue up one 3 million.

Good bye.

One 4 million.

14%.

This resulted from self up 2292.

You'll pay for part of that.

With a 27.

Percent different.

A F.

Nine 991 per cap with an increase of 18, 8%.

Turning to slide 11.

We sold 3 million pieces of space now.

It generated revenue or 0.1.

Selling six now for the fourth quarter.

101.

Slide number 10 summarizes the changes in our revenue mix.

Well the postpartum 2021 .

Total cost of sales increased by 9 million to $41 seven daily.

Leading to total gross profit of $4 3 million Wojahn.

481, 8% increment from the gross profit.

017 million for the same periods of less.

The overall gross margin was.

One corner of 2021 .

Well.

Fourth quarter of 'twenty four.

G&A expense.

<unk> talked with them.

One.

One 4 million.

And operating income was 2 million compared to a loss from operation up so really well done. Thank you.

Operating margin was four 3% compared to operation last March at this.

This one 1% for the thank you we got Lucky.

For the first quarter of 2021 net income was $12 2 million.

Resulting net income of seven cents.

Our basic and diluted share.

This compared to a net loss of one 6 million or net loss of $6.

Our basic and diluted share for the same period of last year.

For the fourth quarter of 'twenty one.

EBITDA increased by 611 million.

So eight 7 million from $2 6 million for the same period last year.

Now shifting gear to year to date financial results.

For fiscal year 'twenty.

Total revenue increased by 38.

With nine 4% to 169, mainly as a result of enquiries in Sao Paulo.

M P and offset printing paper.

Engquist ASP CMP offset.

<unk> printing paper and tissue paper products.

Actually offset by the thickness in the quality of tissue paper products.

For fiscal year 2021 .

Then he segment, including both regular and livelihood.

Generated revenue all of Hampshire than $31 5 million.

Representing.

83, 6% of total revenue.

$111 1 million in revenue was from our regular CMP product.

And 23 4 million was from lives would be empty.

One is while the CMT segment increased by 30, 119%.

200, <unk> 9691 town.

Of which 213490 count were recognized.

And 46201 pounds were light with Fiat.

ASP for Regulus, we actually increased by 28, 7%.

520 per child.

Well as peak well likely see ASP increased by 23, 9% to.

507 per ton.

For fiscal year, 2021 our offset printing paper segment generated revenue of $17 1 million.

We shipped 21513 Tao.

I'll start printing paper for fiscal year, 2021 and.

An increase of 21, 4% from the same pure does less.

As Pete will offset printing paper increased by 15, 1%.

Was this country 96 per ton.

For fiscal year, 2021 tissue paper products generated revenue up 8.8 mill at <unk>.

Increased by 011 million or four 2%.

We shipped.

<unk> thousand 255, how do you show paper products.

The 18, 2% secret.

F T O.

1000 <unk>.

As he to propel with the enquiries are 27, 3%.

For fiscal year 2021 .

Face masks generates revenue 0.5 merely with self ballroom of $12 7 million pieces of business.

For fiscal year 2021 .

Cost of sales increased by $54 6 million to $149 9 million.

Leading to total gross profit of 11 million and an increase of 93, 2% from that.

Overall gross margin up.

One 9% reflects an increase of one two percentage points from last year.

For fiscal year, 2021 F G and expenses were $9 6 million compared to $11 2 million for the same keywords or less.

For fiscal year 2021 operating income English from loss from operations of $5 5 million, one 5 million.

Operating margin was 0.9% compared to operating loss margin of five 4% for the same here.

Well physical year 2021 net income was 0.9 new at.

Our two cents earnings per basic and diluted share compared to a net loss of five one.

Five six.

Lilly our two cents loss per basic and diluted share for the same pure than that of last year.

For fiscal year 'twenty one.

EBITDA increased from $10 2 million to $22 9 million for the same period last year.

Now moving to slide 2020 , one, let's look at the balance sheet and liquidity.

As of December 30.

121, the company have cash and bank balance sheet stock.

Short term debt, including bathroom, our current portion of long term loan from credit Union and related party loan.

And long term debt, including low rank private mi up.

The 11th one 2 million.

$10 5 million and reign melon, respectively, compared to $4 1 million $12 2 million and for the 6 million respectively. At the end of 'twenty 'twenty.

Net accounts receivable was $4 9 million as of December 31, 21, compared to $2 4 million as of December 31st.

'twenty 'twenty.

Now it's been 3151 8 million as of December 31.

<unk> 21.

Compared to $1 2 million.

At the end of 'twenty one.

As of December for.

2021 the company has current assets.

515, nearly and the current liabilities up 'twenty one.

One 4 million, resulting in a working capital of <unk>.

$5 1 million.

This was compared to current assets of $14 9 million and current liabilities of $18 3 million.

Resulting in a working capital with distressed at all three formally at the end of 'twenty 'twenty.

Net cash used in operating activities was one.

One 4 million for the year ended December 31st 2020.

One 801 compared to net cash provided by operating activities, though.

15 1 million for 2018.

Net cash used.

And what's the activity was on.

On a $5 1 million for the year ended December 31, 2021 .

Per tool finally, 5 million or 2020.

Net cash provided by financing activities was $34 2 million for the near and Dear to December 31, 2021 compared to net cash provided by financing activities up to one 1 million or 2020.

That's all for <unk> packaging fourth quarter, 2021 Barney Congress.

I would like to thank our one for joining us today.

If you have any other questions contact us through E mail at IR App.

Packaging both be in.

We appreciate everything you are anxious to invest more in it.

Packaging and look forward to speaking with you again next time. Thank you operator. Please go ahead.

Thank you again for attending I T. Chek packaging is fourth quarter of two tells them to any one earnings conference call. This concludes our call today and we thank you all for listening in Goodbye.

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