IT Tech Packaging, Inc.
Q4 2020 Earnings Call Transcript

Published: 24 Mar 2021

[Operator:]

Hello ladies and gentlemen and welcome to participate in IT Tech Packaging's Fourth Quarter and Fiscal Year 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 fourth quarter and fiscal year 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 fourth quarter and fiscal year 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 fourth quarter and fiscal year 2020 earnings conference call. During the fourth quarter, we continued to make improvements in the sales volume of tissue paper products and posted a slight decrease in sales of CMP products for this quarter.

[Jing Hao:]

Thanks and thanks everyone for being on the call. Next on behalf of the management team I will summarize some key financial results for the fourth quarter 2020. Also I will occasionally refer to specific production lines associated with various products. I will make clear which products I'm referring to. For reference the numbering system for our production lines provided on Slide number 18. Now let's look at our financial performance for the fourth quarter of 2020. Please turn to Slide number 7. For the fourth quarter of 2020, total revenue decreased 3.4% to $32.5 million due to the decrease in sales volume of CMP and offset printing paper. Turning to Slide 8. For the fourth quarter of 2020, the CMP segment including both regular CMP and light-weight CMP generated revenue of $24.9 million, representing 76.7% of total revenue. $19.7 million of revenue was from our regular CMP products and $5.2 million was from light-weight CMP. CMP segment volume slightly decreased by 3.4% to 57,627 tonnes, of which 45,210 tonnes were regular CMP and 12,417 tonnes were light-weight CMP. Average selling price or ASP for regular CMP increased by 4.3% to $435 per tonne and ASP for light-weight CMP were equal to $422 per tonne.

[A - Janice Wang:]

The company plans to invest the new capital raised from the market into, number one, biomass cogeneration project; number two, PM10 production line for tissue paper; and number three, we plan to use partial discount to pay the consideration to complete the acquisition of the Dongfang Paper, which was announced previously.

[Janice Wang:]

Now, if you have any questions, please contact us through e-mail at [e-mail]. Management will respond to your questions through the e-mails as soon as possible. Operator?

[Operator:]

Thank you for attending IT Tech Packaging's fourth quarter and fiscal year 2020 earnings conference call. This concludes our call today and we thank you all for listening in. Goodbye.