IT TECH PACKAGING, INC.
For the period ended Jun 30, 2025. Filed Aug 14, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Aug 14, 2025
ITP$0.12-2.8%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-05-09.
0001213900-25-041500
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-08-14.
0001213900-25-076676
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 102 previous paragraphs and 131 current paragraphs.
43 unchanged; 56 reworded; 28 added; 3 removed; 0 previous and 4 current paragraphs rearranged.
Tables are not compared: 5 previous and 8 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (28)
Current report
Gross Profit
Current report
The gross profit margin for regular CMP for the three months ended June 30, 2025 was 5.11%, or 7.11 percentage points lower, compared to gross profit margin of 12.22% for the three months ended June 30, 2024. This decrease was mainly due to decreased ASP of regular CMP and increased unit cost of sales in the second quarter of 2025.
Current report
Selling, general and administrative expenses for the three months ended June 30, 2025 were $3,036,775, an increase of $319,227, or 11.75% from $2,717,548 for the three months ended June 30, 2024. The increase was mainly due to increased depreciation of idle fixed assets.
Current report
(Loss) Income from Operations
Current report
Operating loss for the quarter ended June 30, 2025 was $1,763,030, a decrease of $2,310,782, or 421.87%, from income from operations of $547,752 for the quarter ended June 30, 2024. The decrease was primarily due to the decline in gross profit and the increase in selling, general and administrative expenses.
Current report
As a result of the above factors, net loss was $1,951,826 for the quarter ended June 30, 2025, representing a decrease of $1,874,079, or 2410.48%, from $77,747 for the quarter ended June 30, 2024.
Current report
Comparison of the Six Months Ended June 30, 2025 and 2024
Current report
Revenue for the six months ended June 30, 2025 was $35,691,907, representing an increase of $2,578,278, or 7.79%, from $33,113,629 for the same period in the previous year. This was mainly due to the increase in sales volume of CMP, partially offset by decreased ASPs of CMP products.
Current report
Revenue from sales of offset printing paper, CMP and tissue paper products for the six months ended June 30, 2025 was $35,691,907, an increase of $2,652,292, or 8.03%, from $33,039,615 for the six months ended June 30, 2024. This was mainly due to the increase in sales volume of CMP, partially offset by the decrease in ASPs of CMP. The total quantities of offset printing paper, CMP and tissue paper products sold during the six months ended June 30, 2025 amounted to 105,795 tonnes, an increase of 11,761 tonnes, or 12.51%, compared to 94,034 tonnes sold during the six months ended June 30, 2024. Production of offset printing paper and tissue paper products was suspended from 2024 through the first half of 2025 and is expected to resume in the second half of 2025. The changes in revenue and quantity sold for the six months ended June 30, 2025 and 2024 is summarized as follows:
Current report
Cost of Sales
Current report
Total cost of sales for CMP, offset printing paper and tissue paper products in the six months ended June 30, 2025 was $34,334,076, an increase of $4,885,123, or 16.59%, from $29,448,953 for the six months ended June 30, 2024. This was mainly due to the increase in sales volume and the increase in unit material costs of CMP.
Current report
The cost of sales for CMP was $34,334,076 for the six months ended June 30, 2025, compared to $29,448,953 in the same period of 2024. The increase of $4,885,123 for CMP was mainly due to the increase in quantities of CMP sold and in the average cost of sales in the first six months of 2025. The average cost of sales per tonne for CMP increased by 3.83%, from $313 for the six months ended June 30, 2024, to $325 in the same period of 2025. Changes in cost of sales and cost per tonne by product for the six months ended June 30, 2025 and 2024 are summarized below:
Current report
Gross Profit
Current report
Gross profit for the six months ended June 30, 2025 was $1,357,831 (representing 3.80% of total revenue), representing a decrease of $2,306,582, or 62.95%, from $3,664,413 (representing 11.07% of total revenue) for the six months ended June 30, 2024. The decrease was mainly due to the decline in ASPs of CMP and increased unit cost of materials, partially offset by the increase in sales volume of CMP.
Current report
Gross profit for offset printing paper, CMP and tissue paper products for the six months ended June 30, 2025 was $1,357,831, a decrease of $2,232,831, or 62.18%, from the gross profit of $3,590,662 for the six months ended June 30, 2024. The decrease was mainly the result of the factors discussed above.
Current report
The overall gross profit margin for offset printing paper, CMP and tissue paper products decreased by 7.07 percentage points, from 10.87% for the six months ended June 30, 2024, to 3.80% for the six months ended June 30, 2025.
Current report
The gross profit margin for regular CMP for the six months ended June 30, 2025 was 3.97%, or 6.89 percentage points lower, as compared to the gross profit margin of 10.86% for the six months ended June 30, 2024. This decrease was primarily due to the decrease in ASP and the increase in material costs of regular CMP.
Current report
The gross profit margin for light-weight CMP for the six months ended June 30, 2025 was 2.93%, or 7.97 percentage points lower, compared to the gross profit margin of 10.90% for the six months ended June 30, 2024. This decrease was primarily due to the decrease in ASP and the increase in material costs of light-weight CMP.
Current report
Selling, General and Administrative Expenses
Current report
Other Income and Expenses
Current report
Interest expense for the six months ended June 30, 2025 decreased by $145,023, from $421,841 for the six months ended June 30, 2024, to $276,818. The Company had short-term and long-term interest-bearing loans that aggregated $9,749,113 as of June 30, 2025, as compared to $12,149,914 as of June 30, 2024.
Current report
Gain on Derivative Liability
Current report
Net Loss
Current report
Net cash provided by financing activities was $1,648,262 for the six months ended June 30, 2025, compared to $422,096 for the same period in 2024. The cash inflow was mainly attributable to proceeds from the issuance of common stock in May 2025 and from short term bank loans.
Current report
On June 10, 2025, the Company entered into a working capital loan agreement with the ICBC, with a balance of $2,794 as of June 30, 2025. The loan bears a fixed interest rate of 3.00% per annum. The loan is due for repayment by June 10, 2026.
Current report
On June 3, 2025, the Company entered into a working capital loan agreement with the ICBC, with a balance of $139,692 as of June 30, 2025. The loan bears a fixed interest rate of 3.00% per annum. The loan is due for repayment by June 3, 2026.
Current report
On June 10, 2025, the Company entered into a working capital loan agreement with the ICBC, with a balance of $139,692 as of June 30, 2025. The loan bears a fixed interest rate of 3.00% per annum. The loan is due for repayment by June 10, 2026.
Current report
On June 9, 2025, the Company entered into a working capital loan agreement with the ICBC, with a balance of $136,898 as of June 30, 2025. The loan bears a fixed interest rate of 3.00% per annum. The loan is due for repayment by June 9, 2026.
Removed paragraphs (3)
Previous report
Gross Profit (Loss)
Previous report
Gross profit margin for light-weight CMP for the three months ended March 31, 2025 was -3.12%, or 6.44 percentage points lower, as compared to gross profit margin of 3.32% for the three months ended March 31, 2024. The decrease was mainly due to the decrease of ASP of light-weight CMP in the first quarter of 2025.
Previous report
Net cash used in financing activities was $585,456 for the three months ended March 31, 2025, as compared to net cash provided by financing activities in the amount of $422,488 for the three months ended March 31, 2024. The net cash outflow for the three months ended March 31, 2025 was from the proceeds of bank loans.
Reworded paragraphs (56)
Previous wording
Revenue for the three months ended March 31, 2025 was $10,897,266, an increase of $4,033,425, or 58.76%, from $6,863,841 for the same period in the previous year. This was mainly due to the increase of sales volume of corrugating medium paper (“CMP”), partially offset by the decrease in average selling prices (“ASP”) of CMP.
Current wording
Revenue for the three months ended June 30, 2025 was $24,794,641, a decrease of $1,455,147, or 5.54%, from $26,249,788 for the same period in the previous year. This was mainly due to decreases in the sales volume of corrugating medium paper (“CMP”) and in the average selling prices (“ASP”) of CMP.
Previous wording
Revenue from sales of offset printing paper, CMP and tissue paper products for the three months ended March 31, 2025 was $10,897,266, representing an increase of $4,070,466, or 59.62%, from $6,826,800 for the first quarter of 2024. Total offset printing paper, CMP and tissue paper products sold during the three months ended March 31, 2025 amounted to 31,607 tonnes, representing an increase of 12,937 tonnes, or 69.29%, compared to 18,670 tonnes sold in the comparable period in the previous year. Production of offset printing paper and tissue paper products were suspended from 2024 through first quarter of 2025 and is expected to resume in the second half of 2025. The changes in revenue dollar amount and in quantity sold for the three months ended March 31, 2025 and 2024 are summarized as follows:
Current wording
Revenue from sales of offset printing paper, CMP and tissue paper products for the three months ended June 30, 2025 was $24,794,641, representing a decrease of $1,418,174, or 5.41%, from $26,212,815 for the second quarter of 2024. The total volume of offset printing paper, CMP and tissue paper products sold during this period amounted to 74,188 tonnes, representing a decrease of 1,177 tonnes, or 1.56%, compared to the 75,365 tonnes sold during the comparable period in the previous year. Production of offset printing paper and tissue paper products was suspended from 2024 through the first half of 2025 and is expected to resume in the second half of 2025. The changes in revenue dollar amount and in quantity sold for the three months ended June 30, 2025 and 2024 are summarized as follows:
Previous wording
Monthly sales revenue for the 24 months ended March 31, 2025, are summarized below:
Current wording
Monthly sales revenue for the 24 months ended June 30, 2025, is summarized below:
Previous wording
Revenue from CMP amounted to $10,897,266 (100.00% of the total offset printing paper, CMP and tissue paper products revenues) for the three months ended March 31, 2025, representing an increase of $4,070,466, or 59.62%, from $6,826,800 for the comparable period in 2024.
Current wording
Revenue from CMP amounted to $24,794,641 (100.00% of the total offset printing paper, CMP and tissue paper product revenues) for the three months ended June 30, 2025, representing a decrease of $1,418,174, or 5.41%, from $26,212,815 for the comparable period in 2024.
Previous wording
We sold 31,607 tonnes of CMP in the three months ended March 31, 2025 as compared to 18,670 tonnes for the same period in 2024, representing a 69.29% increase in quantity sold.
Current wording
We sold 74,188 tonnes of CMP in the three months ended June 30, 2025, compared to 75,365 tonnes for the same period in 2024, representing a 1.56% decrease in quantity sold.
Previous wording
ASP for regular CMP decreased from $368/tonne for the three months ended March 31, 2024 to $347/tonne for the three months ended March 31, 2025, representing a 5.71% decrease. ASP in RMB for regular CMP for the first quarter of 2024 and 2025 was RMB2,611 and RMB2,487, respectively, representing a 4.74% decrease. The quantity of regular CMP sold increased by 11,122 tonnes, from 15,640 tonnes in the first quarter of 2024 to 26,762 tonnes in the first quarter of 2025.
Current wording
The ASP for regular CMP decreased from $350/tonne for the three months ended June 30, 2024 to $336/tonne for the three months ended June 30, 2025, representing a 4.00% decrease. ASP in RMB for regular CMP for the second quarter of 2024 and 2025 was RMB2,488 and RMB2,409, respectively, representing a 3.18% decrease. The quantity of regular CMP sold decreased by 1,259 tonnes, from 62,813 tonnes in the second quarter of 2024 to 61,554 tonnes in the second quarter of 2025.
Previous wording
ASP for light-weight CMP decreased from $355/tonne for the three months ended March 31, 2024 to $334/tonne for the three months ended March 31, 2025, representing a 5.92% decrease. ASP in RMB for light-weight CMP for the first quarter of 2024 and 2025 was RMB2,522 and RMB2,397, respectively, representing a 4.94% decrease. The quantity of light-weight CMP sold increased by 1,815 tonnes, from 3,030 tonnes in the first quarter of 2024, to 4,845 tonnes in the first quarter of 2025.
Current wording
The ASP for light-weight CMP decreased from $337/tonne for the three months ended June 30, 2024 to $328/tonne for the three months ended June 30, 2025, representing a 2.67% decrease. ASP in RMB for light-weight CMP for the second quarter of 2024 and 2025 was RMB2,395 and RMB2,354, respectively, representing a 1.73% decrease. The quantity of light-weight CMP sold increased by 82 tonnes, from 12,552 tonnes in the second quarter of 2024, to 12,634 tonnes in the second quarter of 2025.
Previous wording
Our PM6 production line, which produces regular CMP, has a designated capacity of 360,000 tonnes /year. The utilization rates for the first quarter of 2025 and 2024 were 30.44% and 15.11%, respectively, representing an increase of 15.33%. Quantities sold for regular CMP that was produced by the PM6 production line from April 2023 to March 2025 are as follows:
Current wording
Our PM6 production line, which produces regular CMP, has a designated capacity of 360,000 tonnes per year. The utilization rates for the second quarter of 2025 and 2024 were 68.82% and 68.02%, respectively, representing an increase of 0.80%.
Previous wording
Total cost of sales for CMP, offset printing paper and tissue paper products for the quarter ended March 31, 2025 was $10,813,180, an increase of $4,348,716, or 67.27%, from $6,464,464 for the comparable period in 2024. This was mainly due to the increase in sales quantity of CMP, partially offset by and the decrease of the unit material cost of Regular CMP.
Current wording
Total cost of sales for CMP, offset printing paper and tissue paper products for the quarter ended June 30, 2025 was $23,520,896, an increase of $536,408, or 2.33%, from $22,984,488 for the comparable period in 2024. This was mainly due to the increase in unit material cost of CMP, partially offset by the decrease in the sales quantity of regular CMP.
Previous wording
Cost of sales for CMP was $10,813,180 for the quarter ended March 31, 2025, as compared to $6,464,464 for the comparable period in 2024. The increase in the cost of sales of $4,348,716 for CMP was mainly due to the increase in sales volume of CMP, partially offset by the decrease in average unit cost of sales of CMP. Average cost of sales per tonne for CMP decreased by 1.16%, from $346 in the first quarter of 2024 to $342 in the first quarter of 2025. The decrease in average cost of sales was mainly attributable to the improvement on utilization rate of PM6 production line, which led to the reduction in unit manufacturing costs, partially offset by the higher average unit purchase costs (net of applicable value added tax) of recycled paper board. Changes in cost of sales and cost per tonne by product for the quarters ended March 31, 2025 and 2024 are summarized below:
Current wording
The cost of sales for CMP was $23,520,896 for the quarter ended June 30, 2025, as compared to $22,984,488 for the comparable period in 2024. The increase of $536,408 was mainly due to the increase in the average unit cost of sales of CMP, partially offset by the decrease in sales volume of regular CMP. The average cost of sales per tonne for CMP increased by 3.93%, from $305 in the second quarter of 2024 to $317 in the second quarter of 2025. This increase was mainly attributable to higher average unit purchase costs (net of applicable value-added tax) of recycled paper board in the second quarter of 2025 compared to the second quarter of 2024. Changes in cost of sales and cost per tonne by product for the quarters ended June 30, 2025 and 2024 is summarized below:
Previous wording
Our average unit purchase costs (net of applicable value added tax) of recycled paper board in the three months ended March 31, 2025 were RMB 1,321/tonne (approximately $184/tonne), as compared to RMB 1,276/tonne (approximately $180/tonne) for the three months ended March 31, 2024. These changes (in US dollars) represent a year-over-year increase of 2.22% for the recycled paper board. We use domestic recycled paper (sourced mainly from the Beijing-Tianjin metropolitan area) exclusively. Although we do not rely on imported recycled paper, the pricing of which tends to be more volatile than domestic recycled paper, our experience suggests that the pricing of domestic recycled paper bears some correlation to the pricing of imported recycled paper.
Current wording
Our average unit purchase cost (net of applicable value-added tax) of recycled paper board in the three months ended June 30, 2025 was RMB 1,250/tonne (approximately $174/tonne), compared to RMB 1,167/tonne (approximately $164/tonne) for the three months ended June 30, 2024. These changes (in US dollars) represent a year-over-year increase of 6.10% for recycled paper board. We use domestic recycled paper (sourced mainly from the Beijing-Tianjin metropolitan area) exclusively. Although we do not rely on imported recycled paper, whose pricing tends to be more volatile than domestic recycled paper, our experience suggests that the pricing of domestic recycled paper bears some correlation to that of imported recycled paper.
Previous wording
Electricity and gas are our two main energy sources. Electricity and gas accounted for approximately 5% and 16.8% of total sales in the first quarter of 2025, respectively, compared to 4% and 12.4% of total sales in the third quarter of 2024. The monthly energy cost as a percentage of total monthly sales of our main paper products for the 24 months ended March 31, 2025 are summarized as follows:
Current wording
Electricity and gas are our two main energy sources. Electricity and gas accounted for approximately 5% and 15.1% of total sales in the second quarter of 2025, respectively, compared to 5% and 12.9% of total sales in the second quarter of 2024. The monthly energy cost as a percentage of total monthly sales of our main paper products for the 24 months ended June 30, 2025 is summarized as follows:
Previous wording
Gross profit for the three months ended March 31, 2025 was $84,086 (representing 0.77% of the total revenue), representing a decrease of $315,027, or 78.93%, from the gross profit of $399,113 (representing 5.81% of the total revenue) for the three months ended March 31, 2024, as a result of factors described above.
Current wording
Gross profit for the three months ended June 30, 2025 was $1,273,745 (representing 5.14% of total revenue), representing a decrease of $1,991,555, or 60.99%, from the gross profit of $3,265,300 (representing 12.44% of total revenue) for the three months ended June 30, 2024, as a result of the factors described above.
Previous wording
Gross profit for offset printing paper, CMP and tissue paper products for the three months ended March 31, 2025 was $84,086, representing a decrease of $278,250, or 76.79%, from the gross profit of $362,336 for the three months ended March 31, 2024. The decrease was mainly the result of the factors discussed above.
Current wording
Gross profit for offset printing paper, CMP and tissue paper products for the three months ended June 30, 2025 was $1,273,745, representing a decrease of $1,954,582, or 60.54%, from the gross profit of $3,228,327 for the three months ended June 30, 2024. The decrease was mainly the result of the factors discussed above.
Previous wording
The overall gross profit margin for offset printing paper, CMP and tissue paper products decreased by 4.54 percentage points, from 5.31% for the three months ended March 31, 2024, to 0.77% for the three months ended March 31, 2025.
Current wording
The overall gross profit margin for offset printing paper, CMP and tissue paper products decreased by 7.18 percentage points, from 12.32% for the three months ended June 30, 2024, to 5.14% for the three months ended June 30, 2025.
Previous wording
Gross profit margin for regular CMP for the three months ended March 31, 2025 was 1.45%, or 4.23 percentage points lower, as compared to gross profit margin of 5.68% for the three months ended March 31, 2024. Such decrease was mainly due to the decrease in ASP of regular CMP, partially offset by the decrease in unit cost of sales in the first quarter of 2025.
Current wording
The gross profit margin for light-weight CMP for the three months ended June 30, 2025 was 5.29%, or 7.53 percentage points lower, compared to the gross profit margin of 12.82% for the three months ended June 30, 2024. Such decrease was mainly due to the decrease in ASP of light-weight CMP and the increase in unit cost of sales in the second quarter of 2025.
Previous wording
Interest expense for the three months ended March 31, 2025 decreased by $77,443, from $210,290 in the three months ended March 31, 2024, to $132,847. The Company had short-term and long-term interest-bearing loans that aggregated $9,722,494 as of March 31, 2025, as compared to $12,204,370 as of March 31, 2024.
Current wording
Interest expense for the three months ended June 30, 2025 decreased by $67,580, from $211,551 for the three months ended June 30, 2024, to $143,971. The Company had short-term and long-term interest-bearing loans that aggregated $9,749,113 as of June 30, 2025, as compared to $12,149,914 as of June 30, 2024.
Previous wording
The Company analyzed the warrant for derivative accounting consideration under ASC 815, “Derivatives and Hedging, and hedging,” and determined that the instrument should be classified as a liability. ASC 815 requires we assess the fair market value of derivative liability at the end of each reporting period and recognize any change in the fair market value as other income or expense item. The change in fair value of derivative liability for the three months ended March 31, 2025 and 2024 was a gain of $4,553 and $34, respectively.
Current wording
The Company analyzed the warrant for derivative accounting consideration under ASC 815, “Derivatives and Hedging, and hedging,” and determined that the instrument should be classified as a liability. ASC 815 requires that we assess the fair market value of the derivative liability at the end of each reporting period and recognize any change in fair market value as other income or expense item. The change in fair value of derivative liability for the three months ended June 30, 2025 and 2024 was a gain of $795 and $15, respectively.
Previous wording
Selling, general and administrative expenses for the three months ended March 31, 2025 were $3,461,321, a decrease of $439,462, or 11.27% from $3,900,783 for the three months ended March 31, 2024. The decrease was mainly due to the decrease in depreciation of idle fixed assets during production suspension.
Current wording
Selling, general and administrative expenses for the six months ended June 30, 2025 were $6,498,096, a decrease of $120,235, or 1.82% from $6,618,331 for the six months ended June 30, 2024. The decrease was mainly due to lower manpower costs and reduced depreciation of idle fixed assets during the production suspension.
Previous wording
Operating loss for the quarter ended March 31, 2025 was $3,377,235, an increase of $124,435, or 3.55%, from $3,501,670 for the quarter ended March 31, 2024. The increase was primarily due to the decrease in in selling, general and administrative expenses, partially offset by the increase in gross profit.
Current wording
Operating loss for the six months ended June 30, 2025 was $5,140,265, a decrease of $2,186,347, or 74.02%, from $2,953,918 for the six months ended June 30, 2024. The decrease was primarily due to the decrease in gross profit, partially offset by the decrease in selling, general and administrative expenses.
Previous wording
As a result and the factors discussed above, net loss was $3,503,785 for the quarter ended March 31, 2025, representing an increase of $242,751, or 6.48%, from $3,746,536 for the quarter ended March 31, 2024.
Current wording
As a result of the above, net loss was $5,455,611 for the six months ended June 30, 2025, representing a decrease of $1,631,328, or 42.66%, from $3,824,283 for the six months ended June 30, 2024.
Previous wording
As of March 31, 2025, we had current assets of $29,499,038 (including a VAT（“Value Added Tax”） recoverable of Tengsheng Paper in amount of $13,173,067), and current liabilities of $20,933,963, resulting in a working capital of $8,565,075. However, production of Baoding Shende has been suspended in 2024 and the first quarter of 2025, rendering related VAT unrecoverable in the short term. Net working capital excluding VAT recoverable as of March 31, 2025 was a working capital deficit of $4,607,992. Baoding Shengde and Tengsheng Paper have incurred loss that there is doubt about these subsidiaries ability to continue as going concerns. The main reason of losses was due to high depreciation costs, decreased market demand, and elevated material costs. Our future sustainability is dependent on our capacity to generate cash from our operational endeavors and secure additional capital to fund our ongoing activities. Should we fail to secure necessary funding, we may be unable to realize our assets and discharge our liabilities in the normal course of business.
Current wording
As of June 30, 2025, we had current assets of $32,644,518 (including a VAT（“Value-Added Tax”） recoverable of Tengsheng Paper in the amount of $13,209,135), and current liabilities of $21,341,552, resulting in a working capital of $11,302,966. However, the production of Baoding Shende was suspended in 2024 and the first half of 2025, rendering the related VAT unrecoverable in the short term. Net working capital excluding VAT recoverable as of June 30, 2025 was a working capital deficit of $1,906,169. Baoding Shengde and Tengsheng Paper have incurred losses, raising doubt about these subsidiaries’ ability to continue as going concerns. The main reasons for these losses were high depreciation costs, decreased market demand, and elevated material costs. Our future sustainability depends on our ability to generate cash from our operational endeavors and secure additional capital to fund ongoing activities. Should we fail to secure necessary funding, we may be unable to realize our assets and discharge our liabilities in the normal course of business.
Previous wording
To address these challenges, we plan to optimize raw material structure and stabilize manufacturing capacity utilization, which will help to reduce procurement costs. Additionally, we are actively exploring new products and adjusting pricing strategies in a timely manner to secure a larger market share.
Current wording
To address these challenges, we plan to optimize our raw material structure and stabilize manufacturing capacity utilization, which will help to reduce procurement and production costs. Additionally, we are actively exploring new products and adjusting pricing strategies in a timely manner to secure a larger market share.
Previous wording
Furthermore, we will maintain rigorous control over inventory, working capital, and cash flow to mitigate financial risks. We will also strategically utilize financing quotas from the capital market to ensure the smooth and healthy operation of the company.
Current wording
Furthermore, we will maintain rigorous control over inventory, working capital, and cash flow to mitigate financial risks. We will also strategically utilize financing quotas from the capital markets to ensure the smooth and healthy operation of the company.
Previous wording
Net accounts receivable increased by $1,840,053, or 639.85%, to $2,127,629 as of March 31, 2025, as compared with $287,576 as of December 31, 2024. We usually collect accounts receivable within 30 days of delivery and completion of sales.
Current wording
Net accounts receivable increased by $1,553,431, or 540.18%, to $1,841,007 as of June 30, 2025, compared with $287,576 as of December 31, 2024. We usually collect accounts receivable within 30 days of delivery and completion of sales.
Previous wording
Inventories consist of raw materials (accounting for 73.4% of total value of inventory as of March 31, 2025), semi-finished goods and finished goods. As of March 31, 2025, the recorded value of inventory increased by 97.4% to $4,642,056 from $2,351,876 as of December 31, 2024. As of March 31, 2025, the inventory of recycled paper board, which is the main raw material for the production of CMP, was $3,244,750, approximately $1,891,207, or 139.72%, higher than the balance as of December 31, 2024. In March 2025, we increased our procurement volume of recycled paper board in anticipation of rising purchase price and to prepare for the expanded production output as planned for the upcoming quarter.
Current wording
Inventories consist of raw materials (accounting for 74.7% of the total inventory value as of June 30, 2025), semi-finished goods and finished goods. As of June 30, 2025, the recorded value of inventory increased by 116.6% to $5,094,810 from $2,351,876 as of December 31, 2024. As of June 30, 2025, the inventory of recycled paper board, which is the main raw material for the production of CMP, was $3,688,955, approximately $2,335,412, or 172.54%, higher than the balance as of December 31, 2024. In May and June 2025, we increased our procurement volume of recycled paper board in anticipation of rising purchase prices and to prepare for expanded production output as planned for the upcoming quarter.
Previous wording
On August 7, 2013, the Company’s Audit Committee and the Board of Directors approved the sale of the land use right of the Headquarters Compound (the “LUR”), the office building and essentially all industrial-use buildings in the Headquarters Compound (the “Industrial Buildings”), and three employee dormitory buildings located within the Headquarters Compound (the “Dormitories”) to Hebei Fangsheng for cash prices of approximately $2.77 million, $1.15 million, and $4.31 million respectively. In connection with the sale of the Industrial Buildings, Hebei Fangsheng agreed to lease the Industrial Buildings back to the Company for its original use for a term of up to three years, with an annual rental payment of approximately $139,394 (RMB1,000,000). The lease agreement was renewed in August 2022 with a term of six years with the same rental payments as provided for in the original lease agreement.
Current wording
On August 7, 2013, the Company’s Audit Committee and the Board of Directors approved the sale of the land use right of the Headquarters Compound (the “LUR”), the office building, essentially all industrial-use buildings in the Headquarters Compound (the “Industrial Buildings”), and three employee dormitory buildings located within the Headquarters Compound (the “Dormitories”) to Hebei Fangsheng for cash prices of approximately $2.77 million, $1.15 million, and $4.31 million respectively. In connection with the sale, Hebei Fangsheng agreed to lease the Industrial Buildings back to the Company for their original use for a term of up to three years, with an annual rental payment of approximately $139,318 (RMB1,000,000). The lease agreement was renewed in August 2022 with a six-year term with the same rental payments as provided for in the original lease agreement.
Previous wording
On May 5, 2020, the Company announced it planned the commercial launch of a new tissue paper production line PM10 and the Company signed an agreement to purchase paper machine with paper machine supplier. The Company expected the new tissue paper production line to be launched after the completion of trial run.
Current wording
On May 5, 2020, the Company announced the planned commercial launch of a new tissue paper production line PM10 and signed an agreement to purchase a paper machine from a supplier. The new tissue paper production line is expected to be launched after the completion of trial runs.
Previous wording
As of March 31, 2025, we had approximately $3.4 million in capital expenditure commitments that were mainly related to the purchase of paper machine of PM10. The infrastructure work of PM10 is complete, while work on the related ancillary facilities is ongoing. These commitments are expected to be financed by bank loans and cash flows generated from our business operations.
Current wording
As of June 30, 2025, we had approximately $3.5 million in capital expenditure commitments mainly related to the purchase of the PM 10 paper machine. The infrastructure work for PM10 is complete, while work on related ancillary facilities is ongoing. These commitments are expected to be financed by bank loans and cash flows generated from our business operations.
Previous wording
Our cash, cash equivalents and restricted cash as of March 31, 2025 was $5,070,360, a decrease of $1,880,216, from $6,950,576 as of December 31, 2024. The decrease of cash and cash equivalents for the three months ended March 31, 2025 was attributable to a number of factors including:
Current wording
Our cash, cash equivalents and restricted cash as of June 30, 2025 totaled $7,509,355, an increase of $558,779 from $6,950,576 as of December 31, 2024. The increase in cash and cash equivalents for the six months ended June 30, 2025 was attributable to several factors including:
Previous wording
Net cash used in operating activities was $2,474,978 for the three months ended March 31, 2025. The balance represented a decrease of cash of $3,099,398, or 496.36%, from $624,420 provided for the three months ended March 31, 2024. Net loss for the three months ended March 31, 2025 was $3,503,785, representing an increase of $242,751, or 6.48%, from a net loss of $3,746,536 for the three months ended March 31, 2024. Changes in various asset and liability account balances throughout the three months ended March 31, 2025 also contributed to the net change in cash from operating activities in three months ended March 31, 2025. Chief among such changes is the increase of accounts receivable in the amount of $1,878,313 during the three months of 2025. There was also an increase of $2,256,756 in the ending inventory balance as of March 31, 2025 (a decrease to net cash for the three months ended March 31, 2025 cash flow purposes). In addition, the Company had non-cash expenses relating to depreciation and amortization in the amount of $3,547,398. The Company also had a net decrease of $1,262,163 in prepayment and other current assets (an increase to net cash) and a net increase of $433,825 in other payables and accrued liabilities and related parties (an increase to net cash), as well as a decrease in income tax payable of $81,069 (a decrease to net cash) during the three months ended March 31, 2025.
Current wording
Net cash used in operating activities was $1,111,313 for the six months ended June 30, 2025. The balance represented a decrease in cash of $2,457,650, or 182.54%, compared to net cash provided by operating activities of $1,346,337 for the six months ended June 30, 2024. Net loss for the six months ended June 30, 2025 was $5,455,611, representing a decrease of $1,631,328, or 42.66%, from $3,824,283 for the six months ended June 30, 2024. Changes in various asset and liability account balances during the six months ended June 30, 2025 also contributed to the net change in cash from operating activities in six months ended June 30, 2025. Chief among such changes were an increase in accounts receivable of $1,579,675 during the six months of 2025, an increase of $2,694,397 in the ending inventory balance as of June 30, 2025 (a decrease to net cash for the six months ended June 30, 2025 cash flow purposes), non-cash expenses for depreciation and amortization of $7,090,582, a decrease of $860,449 in prepayment and other current assets (an increase to net cash) and a net increase of $816,287 in other payables and accrued liabilities and related parties (an increase to net cash), and a decrease in income tax payable of $81,025 (a decrease to net cash) during the six months ended June 30, 2025.
Previous wording
We incurred $8,364 in net cash expenditures for purchases of property, plant and equipment during the three months ended March 31, 2025, as compared to $9,027 for the same period of 2024.
Current wording
We incurred $29,896 in net cash expenditures for purchases of property, plant and equipment during the six months ended June 30, 2025, as compared to $62,640 for the same period in 2024.
Previous wording
On December 24, 2024, the Company entered into a loan agreement with the Rural Credit Union of Xushui District, with a balance of $1,811,039 and $1,808,469 as of March 31, 2025 and December 31, 2024, respectively. The loan is secured by the equipment of Baoding Shengde as collateral for the benefit of the bank. The loan bears a fixed rate of 6% and will be due by December 23, 2025.
Current wording
On December 24, 2024, the Company entered into a loan agreement with the Rural Credit Union of Xushui District, with a balance of $1,815,998 and $1,808,469 as of June 30, 2025 and December 31, 2024, respectively. The loan is secured by the equipment of Baoding Shengde as collateral for the benefit of the bank. The loan bears a fixed rate of 6% and will be due by December 23, 2025.
Previous wording
On December 24, 2024, the Company entered into a loan agreement with the Rural Credit Union of Xushui District, with a balance of $2,228,971 and $2,225,808 as of March 31, 2025 and December 31, 2024, respectively. The loan is secured by the equipment of Baoding Shengde as collateral for the benefit of the bank and guaranteed by a third party company. The loan bears a fixed rate of 6% and will be due by December 23, 2025.
Current wording
On December 24, 2024, the Company entered into a loan agreement with the Rural Credit Union of Xushui District, with a balance of $2,235,074 and $2,225,808 as of June 30, 2025 and December 31, 2024, respectively. The loan is secured by the equipment of Baoding Shengde as collateral for the benefit of the bank and guaranteed by a third party company. The loan bears a fixed rate of 6% and will be due by December 23, 2025.
Previous wording
On December 28, 2024, the Company entered into a working capital loan agreement with the Bank of Cangzhou, to borrow $306,484 at a fixed interest rate of 5.5% per annum. The loan is guaranteed by Mr. Zhenyong Liu. The loan will be due by December 27, 2025.
Current wording
On December 28, 2024, the Company entered into a working capital loan agreement with the Bank of Cangzhou, to borrow $307,323 at a fixed interest rate of 5.5% per annum. The loan is guaranteed by Mr. Liu Zhenyong. The loan will be due by December 27, 2025.
Previous wording
On December 28, 2024, the Company entered into a working capital loan agreement with the Bank of Cangzhou, to borrow $69,655 at a fixed interest rate of 5.5% per annum. The loan is secured by certain of the Company’s manufacturing equipment and guaranteed by Mr. Zhenyong Liu. The loan will be due by December 27, 2025.
Current wording
On December 28, 2024, the Company entered into a working capital loan agreement with the Bank of Cangzhou, to borrow $69,846 at a fixed interest rate of 5.5% per annum. The loan is secured by the Company’s manufacturing equipment and guaranteed by Mr. Liu Zhenyong. The loan will be due by December 27, 2025.
Previous wording
On March 10, 2025, the Company entered into a working capital loan agreement with the Bank of Cangzhou, to borrow $208,966 at a fixed interest rate of 5.5% per annum. The loan is secured by certain of the Company’s manufacturing equipment and guaranteed by Mr. Zhenyong Liu. The loan will be due by March 9, 2026.
Current wording
On March 10, 2025, the Company entered into a working capital loan agreement with the Bank of Cangzhou, to borrow $209,538 at a fixed interest rate of 5.5% per annum. The loan is secured by the Company’s manufacturing equipment and guaranteed by Mr. Liu Zhenyong. The loan will be due by March 9, 2026.
Previous wording
On June 11, 2024, the Company entered into a working capital loan agreement with the ICBC, with a balance of $2,786 and $2,782 as of March 31, 2025 and December 31, 2024, respectively. The loan bears a fixed interest rate of 3.45% per annum. The loan is due for repayment by June 11, 2025.
Current wording
On June 11, 2024, the Company entered into a working capital loan agreement with the ICBC, with a balance of $nil and $2,782 as of June 30, 2025 and December 31, 2024, respectively. The loan bore a fixed interest rate of 3.45% per annum. The loan was repaid on June 10, 2025.
Previous wording
On June 21, 2024, the Company entered into a working capital loan agreement with the ICBC, with a balance of $139,311 and $139,113 as of March 31, 2025 and December 31, 2024, respectively. The loan bears a fixed interest rate of 3.45% per annum. The loan is due for repayment by June 21, 2025.
Current wording
On June 21, 2024, the Company entered into a working capital loan agreement with the ICBC, with a balance of $ nil and $139,113 as of June 30, 2025 and December 31, 2024, respectively. The loan bore a fixed interest rate of 3.45% per annum. The loan was repaid on June 3, 2025.
Previous wording
On June 22, 2024, the Company entered into a working capital loan agreement with the ICBC, with a balance of $139,311 and $139,113 as of March 31, 2025 and December 31, 2024, respectively. The loan bears a fixed interest rate of 3.45% per annum. The loan is due for repayment by June 22, 2025.
Current wording
On June 22, 2024, the Company entered into a working capital loan agreement with the ICBC, with a balance of $ nil and $139,113 as of June 30, 2025 and December 31, 2024, respectively. The loan bore a fixed interest rate of 3.45% per annum. The loan was repaid on June 10, 2025.
Showing the first 40 of 56 pairs. Open the source sections for the rest.
Rearranged current paragraphs (4)
Current report — wording carried from elsewhere
Revenue of Offset Printing Paper, Corrugating Medium Paper and Tissue Paper Products
Current report — wording carried from elsewhere
ASPs for our main products in the six-month period ended June 30, 2025 and 2024 is summarized as follows:
Current report — wording carried from elsewhere
Offset Printing Paper, CMP and Tissue Paper Products
Current report — wording carried from elsewhere
The Company analyzed the warrant for derivative accounting consideration under ASC 815, “Derivatives and Hedging, and hedging,” and determined that the instrument should be classified as a liability. ASC 815 requires that we assess the fair market value of derivative liability at the end of each reporting period and recognize any change in the fair market value as other income or expense item. The change in fair value of derivative liability for the six months ended June 30, 2025 and 2024 was a gain of $5,348 and $49, respectively.