China-based paper product manufacturer and distributor IT Tech Packaging has reported a 76.5% increase in revenue to $46.53m in the second quarter of this year, up from $26.36m last year.
The growth was driven by an increase in sales of corrugating medium paper (CMP) and offset printing paper, as well as higher average selling prices of CMP and tissue paper products.
Revenue from CMP, including both regular and lightweight CMP, accounted for 79.1% of the company’s total revenue for the quarter.
IT Tech Packaging’s revenue from offset printing paper rose by 469.2% to $7.18m for the second quarter of the year.
Its revenue from tissue paper products increased by 2.0% to $2.43m.
During the three months to 30 June, the company reported a $3.03m gross profit, up from $2.56m in the same period of last year.
The company’s income from operations was $430k and its operating income margin was 0.9% for the quarter, while its net loss was $450k, or $0.01 for each share.
Earnings before interest, taxes, depreciation and amortisation (EBITDA) increased from $2.90m in the second quarter of last year to $9.03m this year.
IT Tech Packaging chairman and CEO Zhenyong Liu said: “We continued to [make] improvements in the sales volume of CMP and offset printing paper products for this quarter.
“Amid robust domestic market demand for tissue paper products and improved production efficiency, we continue to expand our capacity by launching a new tissue paper production line, PM10, [which] will greatly boost our overall performance.
“In addition, we are also expanding the business to high and new technology business such as combined heat and power generation projects utilising biomass technology projects [like the] Biomass CHP Project.
“We expect to diversify our sources of revenue and ensure our stable modes of profit-making.”
Last May, IT Tech Packaging revealed plans for its PM10 tissue paper production line, which was launched for commercial production following a successful trial.