IT Tech Packaging, Inc.
Q3 2020 Earnings Call Transcript

Published:

  • Operator:
    Hello ladies and gentlemen, and welcome to participate in IT Tech Packaging's Third Quarter 2020 earnings conference call. At this time, I would like to inform you that this conference is being recorded and that all participants are in a listen-only mode. Joining us today are Mr. Zhenyong Liu, IT Tech Packaging's Chairman and Chief Executive Officer and Ms. Jing Hao, the Company's Chief Financial Officer. Remarks from both Mr. Liu and Ms. Hao will be delivered in English by interpreters. IT Tech Packaging announced its third quarter 2020 financial results via press release yesterday, which can be found on the Company's website at www.itpackaging.cn. First, Mr. Liu will brief you on the Company's key operational highlights over the third quarter 2020 and then Ms. Hao will review the Company's financial results.
  • Zhenyong Liu:
    Thank you, operator, and good morning everyone. Thanks for joining our third quarter 2020 earnings conference call. We continued to make improvements in sales volume for this quarter as our paper products business, along with the whole industry, recovered from the pandemic. Our total revenue increased to $33.4 million and our tissue paper products grew 53.4% in revenue with total sales volume of 74,126 tonnes for this quarter. Sales volumes for CMPs and offset printing paper continued quarter-on-quarter growth and rebounded to the same level as last year. Our ASPs recording a 10.4% sequential increase from Q2 2020, experienced slight decreases compared to the Q3 2019.
  • Jing Hao:
    Thanks, Hebe, and thanks everyone for being on the call. Next, on behalf of the management team, I will summarize some key financial results for the third quarter of 2020. Also, I will occasionally refer to specific production lines associated with various products. I will make clear which products I am referring to. For reference, the numbering system for our production lines is provided on Slide number 18. Now let's look at our financial performance for the third quarter of 2020. Please turn to Slide number 7. For third quarter of 2020, total revenue increased to 1.3% to $33.4 million, due to the increase in sales volume of tissue paper products, CMP and face mask products. Turning to Slide 8. For the third quarter of 2020, the CMP segment, including both regular CMP and light weight CMP, generated revenue of $24.6 million, representing 73.8% of total revenue. $19.6 million of revenue was from our regular CMP products, and $5.1 million was from light weight CMP. CMP segment volume slightly increased by 1.3% to 60,991 tonnes, of which 48,107 tonnes were regular CMP and 12,884 tonnes were light weight CMP. Average selling price, or ASP, for regular CMP slightly decreased by 0.3% to $406 per tonne, and ASP for light weight CMP was equal to $394 per tonne. Turning to Slide 9. For the third quarter of 2020, the offset printing paper generated revenue of $6.1 million, decreased by $0.9 million, or 12.9% from the same period of last year. The offset printing paper volume slightly increased by 0.8% to 10,280 tonnes. ASP for offset printing paper decreased by 13.6% to $596 per tonne. Turning to Slide 10. Tissue paper products generated revenue of $2.4 million, increased by $0.8 million, or 53.4%. This resulted from sales of 2,855 tonnes tissue paper products with a 55.2% increase, at an ASP of $834 per tonne with a decrease of 1.1%.
  • Operator:
    I beg your pardon. Can you repeat that, please?
  • Jing Hao:
    Operator, please go ahead.
  • Operator:
    Do you want to conclude the call, please?
  • Jing Hao:
    Yes, yes. Currently, we're not going to have Q&A session, so we're going to conclude the remarks. Thanks.
  • Operator:
    Certainly. Ladies and gentlemen, you may now disconnect your lines. Thank you for your participation.
  • End of Q&A:

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