IT TECH PACKAGING, INC.
For the period ended Sep 30, 2025. Filed Nov 13, 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.
Sep 30, 2025 · Filed Nov 13, 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 2025-06-30; filed 2025-08-14.
0001213900-25-076676
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-11-13.
0001213900-25-110001
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 131 previous paragraphs and 135 current paragraphs.
60 unchanged; 59 reworded; 12 added; 12 removed; 0 previous and 4 current paragraphs rearranged.
Tables are not compared: 8 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 (12)
Current report
The gross profit margin for regular CMP for the three months ended September 30, 2025 was 7.91%, or 0.37 percentage points higher, as compared to gross profit margin of 7.54% for the three months ended September 30, 2024. Such increase was mainly due to the increase in ASP of regular CMP in the third quarter of 2025.
Current report
Selling, general and administrative expenses for the three months ended September 30, 2025 were $3,018,187, a decrease of $363,315, or 10.74% from $3,381,502 for the three months ended September 30, 2024. The decrease was mainly due to the accrued liability of $0.47 million for legal proceedings the Company was jointly liable for repayment of a loan in the third quarter of 2024.
Current report
Comparison of the Nine months ended September 30, 2025 and 2024
Current report
Selling, general and administrative expenses for the nine months ended September 30, 2025 were $9,516,283, a decrease of $483,550, or 4.84% from $9,999,833 for the nine months ended September 30, 2024. The decrease was mainly due to lower manpower costs in the nine months ended September 30 2025 and accrued liability of $0.47 million for legal proceeding the Company was jointly liable for repayment of a loan in the third quarter of 2024.
Current report
Loss from Operations
Current report
As a result of the above, net loss was $6,903,858 for the nine months ended September 30, 2025, representing an increase of loss of $1,105,629, or 19.07%, from $5,798,229 for the nine months ended September 30, 2024.
Current report
On December 28, 2024, the Company entered into a working capital loan agreement with the Bank of Cangzhou, to borrow $309,619 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.
Current report
On June 10, 2025, the Company entered into a working capital loan agreement with the ICBC, with a balance of $2,815 as of September 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 $140,736 as of September 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 $140,736 as of September 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 $137,921 as of September 30, 2025. The loan bears a fixed interest rate of 3.00% per annum. The loan is due for repayment by June 9, 2026.
Current report
Total interest expenses for the short-term bank loans and long-term loans for the three months ended September 30, 2025 and 2024 were $150,701 and $171,430, respectively. Total interest expenses for the short-term bank loans and long-term loans for the nine months ended September 30, 2025 and 2024 were $427,520 and $593,271, respectively.
Removed paragraphs (12)
Previous 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.
Previous 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.
Previous report
(Loss) Income from Operations
Previous 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.
Previous report
Comparison of the Six Months Ended June 30, 2025 and 2024
Previous report
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 report
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 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.
Previous 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.
Previous 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.
Previous 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.
Previous report
Total interest expense for short-term and long-term loans for the three months ended June 30, 2025 and 2024 was $143,971 and $211,551, respectively. For the six months ended June 30, 2025 and 2024, it was $276,818 and $421,841, respectively.
Reworded paragraphs (59)
Previous 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.
Current wording
Revenue for the three months ended September 30, 2025 was $25,601,344, an increase of $519,844, or 2.07%, from $25,081,500 for the same period in the previous year. This was mainly due to the increase of sales volume of corrugating medium paper (“CMP”) and the increase in 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 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:
Current wording
Revenue from sales of offset printing paper, CMP and tissue paper products for the three months ended September 30, 2025 was $25,601,344, representing an increase of $556,969, or 2.22%, from $25,044,375 for the third quarter of 2024. Total offset printing paper, CMP and tissue paper products sold during the three months ended September 30, 2025 amounted to 75,686 tonnes, representing an increase of 802 tonnes, or 1.07%, compared to 74,884 tonnes sold during the comparable period in the previous year. Production of offset printing paper and tissue paper products was suspended from 2024 through September 2025 and is expected to resume at the end of 2025. The changes in revenue dollar amount and in quantity sold for the three months ended September 30, 2025 and 2024 are summarized as follows:
Previous 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.
Current wording
Revenue from CMP amounted to $25,601,344 (100.00% of the total offset printing paper, CMP and tissue paper products revenues) for the three months ended September 30, 2025, representing an increase of $556,969, or 2.22%, from $25,044,375 for the comparable period in 2024.
Previous 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.
Current wording
We sold 75,686 tonnes of CMP in the three months ended September 30, 2025 as compared to 74,884 tonnes for the same period in 2024, representing a 1.07% increase in quantity sold.
Previous 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.
Current wording
The ASP for regular CMP increased from $337/tonne for the three months ended September 30, 2024, to $340/tonne for the three months ended September 30, 2025, representing a 0.89% increase. ASP in RMB for regular CMP for the third quarter of 2024 and 2025 was RMB2,386 and RMB2,422, respectively, representing a 1.51% increase. The quantity of regular CMP sold increased by 690 tonnes, from 62,121 tonnes in the third quarter of 2024 to 62,811 tonnes in the third quarter of 2025.
Previous 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.
Current wording
The ASP for light-weight CMP increased from $324/tonne for the three months ended September 30, 2024 to $331/tonne for the three months ended September 30, 2025, representing a 2.16% increase. ASP in RMB for light-weight CMP for the third quarter of 2024 and 2025 was RMB2,297 and RMB2,362, respectively, representing a 2.84% increase. The quantity of light-weight CMP sold increased by 112 tonnes, from 12,763 tonnes in the third quarter of 2024, to 12,875 tonnes in the third quarter of 2025.
Previous 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%.
Current wording
Our PM6 production line, which produces regular CMP, has a designated capacity of 360,000 tonnes /year. The utilization rates for the third quarter of 2025 and 2024 were 69.41% and 68.96%, respectively, representing an increase of 0.45%.
Previous 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.
Current wording
Total cost of sales for CMP, offset printing paper and tissue paper products for the quarter ended September 30, 2025 was $23,579,498, an increase of $415,663, or 1.79%, from $23,163,835 for the comparable period in 2024. This was mainly due to the increase in the sales quantity of CMP.
Previous 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:
Current wording
Cost of sales for CMP was $23,579,498 for the quarter ended September 30, 2025, as compared to $23,163,835 for the comparable period in 2024. The increase in the cost of sales of $415,663 for CMP was due to the increase in sales volume of CMP and slight increase in average unit cost of sales of CMP. Average cost of sales per tonne for CMP increased by 0.97%, from $309 in the third quarter of 2024 to $312 in the third quarter of 2025. The increase in average cost of sales was mainly attributable to the higher average unit gas costs in the third quarter of 2025 compared to the third quarter of 2024. Changes in cost of sales and cost per tonne by product for the quarters ended September 30, 2025 and 2024 is summarized below:
Previous 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.
Current wording
Our average unit purchase costs (net of applicable value added tax) of recycled paper board and recycled white scrap paper in the three months ended September 30, 2025 were RMB 1,211/tonne (approximately $169/tonne), as compared to RMB 1,214/tonne (approximately $171/tonne) for the three months ended September 30, 2024. These changes (in US dollars) represent a year-over-year decrease of 1.17% 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.
Previous 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:
Current wording
Electricity and gas are our two main energy sources. Electricity and gas accounted for approximately 5% and 14.8% of total sales in the third quarter of 2025, respectively, compared to 5% and 14.3% 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 September 30, 2025 is summarized as follows:
Previous 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.
Current wording
Gross profit for the three months ended September 30, 2025 was $2,021,846 (representing 7.90% of the total revenue), representing an increase of $104,465, or 5.45%, from the gross profit of $1,917,381 (representing 7.64% of the total revenue) for the three months ended September 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 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.
Current wording
Gross profit for offset printing paper, CMP and tissue paper products for the three months ended September 30, 2025 was $2,021,846, representing an increase of $141,306, or 7.51%, from the gross profit of $1,880,540 for the three months ended September 30, 2024. The increase 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 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.
Current wording
The overall gross profit margin for offset printing paper, CMP and tissue paper products increased by 0.39 percentage points, from 7.51% for the three months ended September 30, 2024, to 7.90% for the three months ended September 30, 2025.
Previous 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.
Current wording
The gross profit margin for light-weight CMP for the three months ended September 30, 2025 was 7.84%, or 0.51 percentage points higher, as compared to gross profit margin of 7.33% for the three months ended September 30, 2024. The increase was mainly due to the increase in ASP of light-weight CMP in the third quarter of 2025.
Previous wording
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 wording
Operating loss for the quarter ended September 30, 2025 was $992,632, a decrease of loss of $471,489, or 32.20%, from $1,464,121 for the quarter ended September 30, 2024. The decrease was primarily due to the increase in gross profit and the decrease in selling, general and administrative expenses.
Previous 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.
Current wording
Interest expense for the three months ended September 30, 2025 decreased by $20,728, from $171,430 for the three months ended September 30, 2024, to $150,702. The Company had short-term and long-term interest-bearing loans, related party loans and leasing obligations that aggregated $9,821,969 as of September 30, 2025, as compared to $9,788,224 as of September 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 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.
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 September 30, 2025 and 2024 was a gain of $303 and $2, respectively.
Previous 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.
Current wording
As a result of the factors discussed above, net loss was $1,448,247 for the quarter ended September 30, 2025, representing a decrease of loss of $525,699, or 26.63%, from $1,973,946 for the quarter ended September 30, 2024.
Previous wording
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 wording
Revenue for the nine months ended September 30, 2025 was $61,293,251, representing an increase of $3,098,122, or 5.32%, from $58,195,129 for the same period in the previous year. This was mainly due to the increase in sales volume of CMP, partially offset by the decrease in ASPs of CMP products.
Previous wording
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 wording
Revenue from sales of offset printing paper, CMP and tissue paper products for the nine months ended September 30, 2025 was $61,293,251, an increase of $3,209,261, or 5.53%, from $58,083,990 for the nine months ended September 30, 2024. This was mainly due to the increase in sales volume of CMP, partially offset by the decrease in ASPs of CMP. Total quantities of offset printing paper, CMP and tissue paper products sold during the nine months ended September 30, 2025 amounted to 181,482 tonnes, an increase of 12,563 tonnes, or 7.44%, compared to 168,919 tonnes sold during the nine months ended September 30, 2024. Production of offset printing paper and tissue paper products was suspended from 2024 through September 2025 and is expected to resume at the end of 2025. The changes in revenue and quantity sold for the nine months ended September 30, 2025 and 2024 are summarized as follows:
Previous wording
ASPs for our main products in the six-month period ended June 30, 2025 and 2024 is summarized as follows:
Current wording
ASPs for our main products in the nine-month period ended September 30, 2025 and 2024 is summarized as follows:
Previous wording
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 wording
Total cost of sales for CMP, offset printing paper and tissue paper products in the nine months ended September 30, 2025 was $57,913,574, an increase of $5,300,786, or 10.08%, from $52,612,788 for the nine months ended September 30, 2024. This was mainly due to the increase in sales volume and the increase in unit material costs for CMP.
Previous wording
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 wording
The cost of sales for CMP was $57,913,574 for the nine months ended September 30, 2025, as compared to $52,612,788 in the same period of 2024. The increase in the cost of sales of $5,300,786 for CMP was mainly due to the increase in the quantities of CMP sold and the increase in average cost of sales in the nine months of 2025. The average cost of sales per tonne for CMP increased by 2.57%, from $311 for the nine months ended September 30, 2024, to $319 in the same period of 2025. Changes in cost of sales and cost per tonne by product for the nine months ended September 30, 2025 and 2024 are summarized below:
Previous wording
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 wording
Gross profit for the nine months ended September 30, 2025 was $3,379,677 (representing 5.51% of the total revenue), representing a decrease of $2,202,117, or 39.45%, from the gross profit of $5,581,794 (representing 9.59% of the total revenue) for the nine months ended September 30, 2024. The decrease was mainly due to the decline in ASPs of CMP and the increase in unit cost of materials, partially offset by the increase in sales volume of CMP.
Previous wording
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 wording
Gross profit for offset printing paper, CMP and tissue paper products for the nine months ended September 30, 2025 was $3,379,677, a decrease of $2,091,525, or 38.23%, from the gross profit of $5,471,202 for the nine months ended September 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 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 wording
The overall gross profit margin for offset printing paper, CMP and tissue paper products decreased by 3.91 percentage points, from 9.42% for the nine months ended September 30, 2024, to 5.51% for the nine months ended September 30, 2025.
Previous wording
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 wording
The gross profit margin for regular CMP for the nine months ended September 30, 2025 was 5.61%, or 3.83 percentage points lower, as compared to gross profit margin of 9.44% for the nine months ended September 30, 2024. This decrease was primarily due to the decrease in ASP and the increase in material costs of regular CMP.
Previous wording
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 wording
The gross profit margin for light-weight CMP for the nine months ended September 30, 2025 was 5.02%, or 4.31 percentage points lower, as compared to gross profit margin of 9.33% for the nine months ended September 30, 2024. This decrease was primarily due to the decrease in ASP and the increase in material costs of light-weight CMP.
Previous 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.
Current wording
Operating loss for the nine months ended September 30, 2025 was $6,132,897, an increase of loss of $1,714,858, or 38.81%, from $4,418,039 for the nine months ended September 30, 2024. The increase was primarily due to the decrease in gross profit, partially offset by the decrease in selling, general and administrative expenses.
Previous wording
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 wording
Interest expense for the nine months ended September 30, 2025 decreased by $165,751, from $593,271 for the nine months ended September 30, 2024, to $427,520. The Company had short-term and long-term interest-bearing loans and lease obligations that aggregated $9,821,969 as of September 30, 2025, as compared to $9,788,224 as of September 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 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.
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 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 nine months ended September 30, 2025 and 2024 was a gain of $5,651 and $51, respectively.
Previous 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.
Current wording
As of September 30, 2025, we had current assets of $35,764,365 (including a VAT （“Value Added Tax “）recoverable of Tengsheng Paper in amount of $13,307,848), and current liabilities of $18,667,302, resulting in a working capital of $17,097,063. However, production of Tengsheng Paper has been suspended in 2024 and the nine months ended September 30, 2025, rendering related VAT unrecoverable in the short term. Net working capital excluding VAT recoverable as of September 30, 2025 was a working capital of $3,789,215. 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. Therefore, there was a substantial doubt about the ability of us to continue as a going concern that we may be unable to realize its assets and discharge its liabilities in the normal course of business as of September 30, 2025.
Previous 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.
Current wording
Net accounts receivable increased by $1,791,614, or 623.01%, to $2,079,190 as of September 30, 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.
Previous 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.
Current wording
Inventories consist of raw materials (accounting for 70.5% of total value of inventory as of September 30, 2025), semi-finished goods and finished goods. As of September 30, 2025, the recorded value of inventory increased by 65.8% to $3,899,571 from $2,351,876 as of December 31, 2024. As of September 30, 2025, the inventory of recycled paper board, which is the main raw material for the production of CMP, was $2,630,267, approximately $1,276,724, or 94.3%, higher than the balance as of December 31, 2024. We increased our procurement volume of recycled paper board in 2025 in anticipation of rising purchase prices and preparing for expanded production output as planned.
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, 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.
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 $139,698 (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
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:
Current wording
Our cash, cash equivalents and restricted cash as of September 30, 2025 was $9,119,707, an increase of $2,169,131, from $6,950,576 as of December 31, 2024. The increase of cash and cash equivalents for the nine months ended September 30, 2025 was attributable to a number of factors including:
Previous 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.
Current wording
Net cash provided by operating activities was $388,450 for the nine months ended September 30, 2025. The balance represented a decrease of cash of $2,442,661, or 86.28%, from $2,831,111 provided for the nine months ended September 30, 2024. Net loss for the nine months ended September 30, 2025 was $6,903,85, representing an increase of loss of $1,105,629, or 19.07%, from $5,798,229 for the nine months ended September 30, 2024. Changes in various asset and liability account balances throughout the nine months ended September 30, 2025 also contributed to the net change in cash from operating activities in nine months ended September 30, 2025. Chief among such changes is the increase of accounts receivable in the amount of $1,811,293 during the nine months of 2025, an increase of $1,477,521 in the ending inventory balance as of September 30, 2025 (a decrease to net cash for the nine months ended September 30, 2025 cash flow purposes) , non-cash expenses relating to depreciation and amortization in the amount of $10,664,999, an increase of $1,319,298 in prepayment and other current assets (a decrease to net cash) and a net increase of $1,077,867 in other payables and accrued liabilities and related parties (an increase to net cash), as well as an increase in income tax payable of $225,114 (an increase to net cash) during the nine months ended September 30, 2025.
Previous 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.
Current wording
We incurred $25,786 in net cash expenditures for purchases of property, plant and equipment during the nine months ended September 30, 2025, as compared to $315,152 for the same period in 2024.
Previous wording
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 wording
Net cash provided by financing activities was $1,649,855 for the nine months ended September 30, 2025, compared to net cash used in financing activities of $2,112,706 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.
Showing the first 40 of 59 pairs. Open the source sections for the rest.
Rearranged current paragraphs (4)
Current report — wording carried from elsewhere
On December 24, 2024, the Company entered into a loan agreement with the Rural Credit Union of Xushui District, with a balance of $nil and $1,808,469 as of September 30, 2025 and December 31, 2024, respectively. The loan was secured by the equipment of Baoding Shengde as collateral for the benefit of the bank. The loan bore a fixed rate of 6%. The loan was repaid on September 30, 2025.
Current report — wording carried from elsewhere
On December 24, 2024, the Company entered into a loan agreement with the Rural Credit Union of Xushui District, with a balance of $nil and $2,225,808 as of September 30, 2025 and December 31, 2024, respectively. The loan was secured by the equipment of Baoding Shengde as collateral for the benefit of the bank and guaranteed by a third-party company. The loan bore a fixed rate of 6%. The loan was repaid on September 30, 2025.
Current report — wording carried from elsewhere
On August 15, 2025, the Company entered into a loan agreement with the Rural Credit Union of Xushui District for a term of 3 years, which is due and payable on August 14, 2028. The loan is secured by certain of the Company’s manufacturing equipment with net book value of $nil as of September 30, 2025. Interest payment is due monthly and bore a rate of 6% per annum. As of September 30, 2025, the total outstanding loan balance was $3,516,994, which is presented as non-current liabilities in the consolidated balance sheet as of September 30, 2025.
Current report — wording carried from elsewhere
On August 15, 2025, the Company entered into a loan agreement with the Rural Credit Union of Xushui District for a term of 3 years, which is due and payable on August 14, 2028. The loan is guaranteed by an independent third party. Interest payment is due monthly and bore a rate of 6% per annum. As of September 30, 2025, the total outstanding loan balance was $1,210,330, which is presented as non-current liabilities in the consolidated balance sheet as of September 30, 2025.