BAODING,China,Nov. 16,2024 -- IT Tech Packaging Inc. (NYSE American: ITP) ("IT Tech Packaging" or the "Company"),a leading manufacturer and distributor of diversified paper products in North China,today announced its unaudited financial results for the nine and three months ended September 30,2024.

ThirdQuarter 2024 Unaudited Financial Results

For the Three Months Ended September 30,

($ millions)

2024

2023

% Change

Revenues

25.08

15.77

59.03%

Regular Corrugating Medium Paper ("CMP")*

20.91

11.95

74.93%

Light-Weight CMP**

4.13

3.47

19.16%

Offset Printing Paper

-

0.07

-

Tissue Paper Products

-

0.26

-

Face Masks

-

0.02

-

Gross profit (loss)

1.92

(0.15)

1351.37%

Gross profit (loss) margin

7.64%

-0.97%

8.61pp***

Regular Corrugating Medium Paper ("CMP")*

7.54%

7.01%

0.53pp****

Light-Weight CMP**

7.33%

-7.47%

14.80pp****

Offset Printing Paper

-

7.53%

-

Tissue Paper Products***

-

-278.10%

Face Masks

-

-15.75%

-

Operating income（loss）

(1.46)

(2.48)

-41.07%

Net income (loss)

(1.97)

(1.98)

-0.07%

EBITDA

2.03

1.69

20.12%

Basic and Diluted earnings (loss) per share

(0.20)

(0.20)

-

* Products from PM6

** Products from PM1

*** Products from PM8 and PM9

**** pp represents percentage points

Revenue increased by 59.03% to approximately $25.08 million as compared to the same period of last 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.

Gross profit increased by 1351.37% to approximately $1.92 million as compared to the same period of last year. Total gross profit margin increased by 8.61 percentage point to 7.64%.

Loss from operations was approximately $1.46 million,compared to approximately $2.48 million for the same period of last year.

Net loss was approximately $1.97 million,or loss per share of $0.20,compared to net loss of approximately $1.98 million,for the same period of last year.

Earnings before interest,taxes,depreciation and amortization ("EBITDA") was approximately $2.03 million,compared to$1.69 million for the same period of last year.

Revenue

For the third quarter of 2024,total revenue increased by 59.03%,toapproximately $25.08 millionfromapproximately $15.77 millionfor the same period of last 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.

The following table summarizes revenue,volume and ASP by product for the third quarter of 2024 and 2023,respectively:

For the Three Months Ended September 30,

2024

2023

Revenue

($'000)

Volume

(tonne)

ASP

($/tonne)

Revenue

($'000)

Volume

(tonne)

ASP

($/tonne)

Regular CMP

20,910

62,121

337

11,954

34,186

350

Light-Weight CMP

4,134

12,763

324

3,470

10,210

340

Offset Printing Paper

-

-

-

69

170

407

Tissue Paper Products

-

-

-

264

241

1,096

Total

25,044

74,884

334

15,757

44,807

352

Revenue

($'000)

Volume

(thousand

pieces)

ASP

($/thousand

pieces)

Revenue

($'000)

Volume

(thousand

pieces)

ASP

($/thousand

pieces)

Face Masks

-

-

-

15

507

30

Revenue from CMP,including both regular CMP and light-Weight CMP,increased by 62.38%,toapproximately $25.04 millionand accounted for 99.85% of total revenue for the third quarter of 2024,compared toapproximately $15.42 million,or 97.79% of total revenue for the same period of last year. The Company sold 74,884 tonnes of CMP at an ASP of$334/tonne during the third quarter of 2024,compared to 44,396tonnes at an ASP of$347/tonne in the same period of last year.

Of the total CMP sales,revenue from regular CMP increased by 74.93%,toapproximately $20.91 million for the third quarter of 2024,compared to revenue ofapproximately $11.95 million for the same period of last year. The Company sold 62,121 tonnesof regular CMP at an ASP of$337/tonne during the third quarter of 2024,compared to 34,186 tonnes at an ASP of$350/tonne for the same period of last year. Revenue from light-weight CMP increased by 19.16%,toapproximately $4.13 million for the third quarter of 2024,compared to revenue ofapproximately $3.47 million for the same period of last year. The Company sold 12,763 tonnes of light-weight CMP at an ASP of$324/tonne for the third quarter of 2024,compared to 10,210 tonnes at an ASP of$340/tonne for the same period of last year.

Revenue from offset printing paper was $nil for the three months ended September 30,2024,compared with revenue of $0.07 million for the same period of last year. The Company sold 170 tonnes of offset printing paper at an ASP of$407/tonne in the third quarter of 2023.

Revenue from tissue paper products was $nil for the third quarter of 2024,compared to $0.26 million for the third quarter of 2023. The Company sold 241 tonnes of tissue paper products at an ASP of$1,096/tonne during the third quarter of 2023.

Revenue from face masks was $nil for the third quarter of 2024,compared to $0.02 nillionfor the same period of last year. The Company sold 507 thousand pieces of face masks during the third quarter of 2023.

Gross Profit and Gross Margin

Total cost of sales increased by 45.46%,toapproximately $23.16 millionfor the third quarter of 2024 fromapproximately $15.92 millionfor the same period of last year. This was mainly due to the increase in sales quantity of CMP,partially offset by the decrease of the unit material cost of CMP products.Costs of sales per tonne for regular CMP,light-weight CMP,offset printing paper,and tissue paper products were$311,$300,$nil and$nil,respectively,for the third quarter of 2024,compared to $325,$365,$377 and$4,143 respectively,for the same period of last year.

Total gross profit wasapproximately $1.92 millionfor the third quarter of 2024,compare to the gross loss ofapproximately $0.15 millionfor the same period of last year as a result of factors described above. Overall gross profit margin was 7.64% for the third quarter of 2024,compared to gross loss margin of 0.97% for the same period of last year. Gross profit(loss) margins for regular CMP,tissue paper products and face mask products were 7.54%,7.33%,n/a,n/a and n/a,compared to 7.01%,-7.47%,7.53%,-278.10% and -15.75%,for the same period of last year.

Selling,General and Administrative Expenses

Selling,general and administrative expenses ("SG&A") increased by 44.83%,toapproximately $3.38 millionfor the third quarter of 2024 fromapproximately $2.33 millionfor the same period of last year.

Loss from Operations

Loss from operations wasapproximately $1.46 millionfor the third quarter of 2024,a decrease of 41.07%,from loss from operations ofapproximately $2.48 millionfor the same period of last year. Operating loss margin was 5.84% for the third quarter of 2024,compared to operating loss margin of 15.75% for the same period of last year.

Net Loss

Net loss wasapproximately $1.97 million,compared to net loss ofapproximately $1.98 million,for the same period of last year.

EBITDA

EBITDA wasapproximately $2.03 millionfor the third quarter of 2024,compared toapproximately $1.69 millionfor the same period of last year.

Note 1: Non-GAAP Financial Measures

In addition to our U.S. GAAP results,this press release includes a discussion of EBITDA,a non-GAAP financial measure as defined by the Securities and Exchange Commission ("SEC"). The Company defines EBITDA as net income before interest,income taxes,depreciation and amortization. EBITDA is a key measure used by management to evaluate our results and make strategic decisions. Management believes this measure is useful to investors because it is an indicator of operational performance. Because not all companies use identical calculations,the Company's presentation of EBITDA may not be comparable to similarly titled measures of other companies,and should not be viewed as an alternative to measures of financial performance or changes in cash flows calculated in accordance with the U.S. GAAP.

Reconciliation of Net Income to EBITDA

(Amounts expressed in US$)

For the Three Months Ended September 30,

($ millions)

2024

2023

Net loss

-1.97

-1.98

Add: Income tax

0.35

0.00

Net interest expense

0.17

0.25

Depreciation and amortization

3.48

3.42

EBITDA

2.03

1.69

Nine Months Ended September 30,2024 Unaudited Financial Results

For the Nine Months Ended September 30,

($ millions)

2024

2023

% Change

Revenues

58.20

65.58

-11.26%

Regular Corrugating Medium Paper ("CMP")*

48.64

50.35

-3.39%

Light-Weight CMP**

9.44

11.07

-14.76%

Offset Printing Paper

-

3.23

-

Tissue Paper Products

-

0.83

-

Face Masks

-

0.10

-

Gross profit

5.58

0.75

644.60%

Gross profit (loss) margin

9.59%

1.14%

8.45 pp****

Regular Corrugating Medium Paper ("CMP")*

9.44%

5.26%

4.18 pp****

Light-Weight CMP**

9.33%

1.68%

7.65 pp****

Offset Printing Paper

-

2.53%

-

Tissue Paper Products***

-

-258.64%

-

Face Masks

-

-9.26%

-

Operating loss

(4.42)

(5.78)

-23.50%

Net loss

(5.80)

(5.96)

-2.75%

EBITDA

5.94

5.73

3.66%

Basic and Diluted loss per share

(0.58)

(0.59)

-1.69%

* Products from PM6

** Products from PM1

*** Products from PM8 and PM9

**** pp represents percentage points

Revenue

For the nine months ended September 30,total revenue decreased by 11.26%,toapproximately $58.20 millionfromapproximately $65.58 millionfor the same period of last year. This was mainly due to the decrease in ASP of CMP,partially offset by the increase in sales quantity of regular CMP.

The following table summarizes revenue,volume and ASP by product for the nine months ended September 30,2024 and 2023,respectively:

For the Nine Months EndedSeptember30,

2024

2023

Revenue

($'000)

Volume

(tonne)

ASP

($/tonne)

Revenue

($'000)

Volume

(tonne)

ASP

($/tonne)

Regular CMP

48,644

140,574

346

50,353

135,912

370

Light-Weight CMP

9,440

28.345

333

11,074

31,106

356

Offset Printing Paper

-

-

-

3,225

5,573

579

Tissue Paper Products

-

-

-

831

726

1,145

Total

58,084

168,919

344

65,483

173,317

378

Revenue

($'000)

Volume

(thousand

pieces)

ASP

($/thousand

pieces)

Revenue

($'000)

Volume

(thousand

pieces)

ASP

($/thousand

pieces)

Face Masks

-

-

-

95

3,023

31

Revenue from CMP,decreased by 5.44%,toapproximately $58.08 millionand accounted for 99.81% of total revenue for the nine months ended September 30,compared toapproximately $61.43 million,or 93.66% of total revenue for the same period of last year. The Company sold 168,919 tonnes of CMP at an ASP of$344/tonne in nine months ended September 30,compared to 167,018tonnes at an ASP of$368/tonne in the same period of last year.

Of the total CMP sales,revenue from regular CMP decreased by 3.39%,toapproximately $48.64 million for the nine months ended September 30,compared to revenue ofapproximately $50.35 million for the same period of last year. The Company sold 140,574 tonnesof regular CMP at an ASP of$346/tonne during the nine months ended September 30,compared to 135,912 tonnes at an ASP of$370/tonne for the same period of last year. Revenue from light-weight CMP decreased by 14.76%,toapproximately $9.44 million for the nine months ended September 30,2023,compared to revenue ofapproximately $11.07 million for the same period of last year. The Company sold 28,345 tonnes of light-weight CMP at an ASP of$333/tonne during the nine months ended September 30,compared to 31,106 tonnes at an ASP of$356/tonne for the same period of last year.

Revenue from offset printing paper was $nilfor the nine months ended September 30,compared to $3.23 million for the same period of last year. The Company sold 5,573tonnes of offset printing paper at an ASP of$579/tonne in the nine months ended September 30,2023.

Revenue from tissue paper products was $nilfor the nine months ended September 30,compared to $0.83million for the same period of last year. The Company sold 726 tonnes of tissue paper products at an ASP of$1,145/tonne during the nine months ended September 30,2023.

Revenue from face masks was $nil for the nine months ended September 30,compared to $0.10 millionfor the same period of last year. The Company sold 3,023 thousand pieces of face masks during the nine months ended September 30,2023.

Gross Profit and Gross Margin

Total cost of sales decreased by 18.85%,toapproximately $52.61 millionfor the nine months ended September 30,2024 fromapproximately $64.83 millionfor the same period of last year. This was mainly due to the decrease in the unit material costs of CMP. Costs of sales per tonne for regular CMP,and tissue paper products were$313,$302,n/a andn/a,for the nine months ended September 30,compared to $351,$350,$564 and$4,107,for the same period of last year.

Total gross profit wasapproximately $5.58 millionfor the nine months ended September 30,compare to the gross profit ofapproximately $0.75 millionfor the same period of last year as a result of factors described above. Overall gross margin was 9.59% for the nine months ended September 30,compared to 1.14% for the same period of last year. Gross profit(loss) margins for regular CMP,tissue paper products and face mask products were 9.44%,9.33%,compared to 5.26%,1.68%,2.53%,-258.64% and -9.26%,general and administrative expenses ("SG&A") increased by 62.51%,toapproximately $10.00 millionfor the nine months ended September 30,2024 fromapproximately $6.15 millionfor the same period of last year.

Loss from Operations

Loss from operations wasapproximately $4.42 millionfor the nine months ended September 30,a decrease of 23.50%,from loss from operations ofapproximately $5.78 millionfor the same period of last year. Operating loss margin was 7.59% for the nine months ended September 30,compared to operating loss margin of 8.81% for the same period of last year.

Net Loss

Net loss wasapproximately $5.80 million,or loss per share of $0.58,compared to net loss ofapproximately $5.96 million,or loss per share of $0.59,for the same period of last year.

EBITDA

EBITDA wasapproximately $5.94 millionfor the nine months ended September 30,compared toapproximately $5.73 millionfor the same period of last year.

Note 1: Non-GAAP Financial Measures

In addition to our U.S. GAAP results,and should not be viewed as an alternative to measures of financial performance or changes in cash flows calculated in accordance with the U.S. GAAP.

Reconciliation of Net Income to EBITDA

(Amounts expressed in US$)

For the Nine Months EndedSeptember30,

($ millions)

2024

2023

Net loss

-5.80

-5.96

Add: Income tax

0.80

0.35

Net interest expense

0.59

0.77

Depreciation and amortization

10.35

10.57

EBITDA

5.94

5.73

Cash,Liquidity and Financial Position

As of September 30,the Company had cash and bank balances,short-term debt (including bank loans,current portion of long-term loans from credit union and related party loans),and long-term debt (including related party loans) ofapproximately $4.41million,$5.95million and$4.57 million,compared to approximately $3.92million,$8.03million and$4.50 million,as ofDecember 31,2023.

Net accounts receivable wasapproximately $1.73million as of September 30,compared to $0.58 million as ofDecember 31,2023. Net inventory was approximately$5.73million as of September 30,compared toapproximately $3.56million as ofDecember 31,2023. As of September 30,the Company had current assets ofapproximately $32.97million and current liabilities ofapproximately$20.75 million,resulting in a working capital ofapproximately $12.22million. This was compared to current assets of approximately $28.36 million and current liabilities of approximately $21.42 million,resulting in a working capital of approximately $6.94 million as ofDecember 31,2023.

Net cash provided by operating activities wasapproximately $2.83 millionfor the nine months ended September 30,compared to approximately$7.49 millionfor the same period of last year. Net cash used in investing activities wasapproximately $0.32 millionfor the nine months ended September 30,compared to approximately $9.21 millionfor the same period of last year. Net cash provided by financing activities wasapproximately $2.11 millionfor the nine months ended September 30,compared to approximately $2.00 million for the same period of last year.

About IT Tech Packaging,Inc.

Founded in 1996,IT Tech Packaging,Inc. is a leading manufacturer and distributor of diversified paper products and single-use face masks inNorth China. Using recycled paper as its primary raw material (with the exception of its tissue paper products),ITP produces and distributes three categories of paper products: corrugating medium paper,offset printing paper and tissue paper products. With production based in Baoding and Xingtai inNorth China'sHebei Province,ITP is located strategically close to theBeijingandTianjinregion,home to a growing base of industrial and manufacturing activities and one of the largest markets for paper products consumption in the country. ITP has been listed on the NYSE American sinceDecember 2009. For more information,please visit:http://www.itpackaging.cn/.

Forward-looking Statement

This release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933,as amended,and Section 21E of the Securities Exchange Act of 1934,as amended. Forward-looking statements give our current expectations,opinion,belief or forecasts of future events and performance. A statement identified by the use of forward-looking words including "will,""may,""expects,""projects,""anticipates,""plans,""believes,""estimate,""should," and certain of the other foregoing statements may be deemed forward-looking statements. These forward-looking statements are subject to a number of risks,uncertainties and assumptions,including market and other conditions. More detailed information about the Company and the risk factors that may affect the realization of forward-looking statements is set forth in the Company's filings with the SEC. Investors and security holders are urged to read these documents free of charge on the SEC's web site athttp://www.sec.gov. The Company undertakes no obligation to update any such forward-looking statements after the date hereof to conform to actual results or changes in expectations,except as required by law.

For more information,please contact:

Email:ir@itpackaging.cn

Tel: +86 312 8698215

IT TECH PACKAGING,INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

AS OF SEPTEMBER 30,2024 AND DECEMBER 31,2023

(unaudited)

September 30,

December 31,

2024

2023

ASSETS

Current Assets

Cash and bank balances

$

4,414,848

$

3,918,938

Restricted cash

478,066

472,983

Accounts receivable (net of allowance for doubtful

accounts of $42,533 and $11,745 as of September 30,

2024 and December 31,respectively)

1,727,370

575,526

Inventories

5,732,539

3,555,235

Prepayments and other current assets

19,384,595

18,981,290

Due from related parties

1,237,479

853,929

Total current assets

32,974,897

28,357,901

Operating lease right-of-use assets,net

459,612

528,648

Property,plant,and equipment,net

154,755,386

163,022

Value-added tax recoverable

1,828,344

1,883,078

Total Assets

$

190,018,239

$

194,743,649

LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities

Short-term bank loans

$

856,238

$

423,567

Current portion of long-term loans

4,365,385

6,874,497

Lease liability

249,976

100,484

Accounts payable

-

4,991

Advance from customers

37,101

136,167

Due to related parties

732,982

728,869

Accrued payroll and employee benefits

362,996

237,842

Other payables and accrued liabilities

13,800,118

12,912,517

Income taxes payable

349,828

-

Total current liabilities

20,754,624

21,418,934

Long-term loans

4,566,601

4,503,932

Lease liability - non-current

372,966

483,866

Derivative liability

3

54

Total liabilities (including amounts of the consolidated

VIE without recourse to the Company of $19,074 627 and

$20,084,995 as of September 30,2024 and December 31,

2023,respectively)

25,694,194

26,406,786

Commitments and Contingencies

Stockholders' Equity

Common stock,50,000,000 shares authorized,$0.001 par

value per share,10,065,920 shares issued and outstanding

as of September 30,2024 and December,31,2023.

10,066

10,066

Additional paid-in capital

89,172,771

89,771

Statutory earnings reserve

6,080,574

6,574

Accumulated other comprehensive loss

(8,770,123)

(10,534)

Retained earnings

77,830,757

83,628,986

Total stockholders' equity

164,324,045

168,336,863

Total Liabilities and Stockholders' Equity

$

190,649

IT TECH PACKAGING,INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30,2024 AND 2023

(Unaudited)

Three Months Ended

Nine Months Ended

September 30,

September 30,

2024

2023

2024

2023

Revenues

$

25,081,500

$

15,771,560

$

58,195,129

$

65,582,351

Cost of sales

(23,164,119)

(15,924,783)

(52,613,335)

(64,832,715)

Gross Profit (Loss)

1,917,381

(153,223)

5,581,794

749,636

Selling,general and

administrative expenses

(3,381,502)

(2,334,746)

(9,999,833)

(6,153,513)

Loss on impairment of

assets

-

3,456

-

(371,680)

Loss from Operations

(1,464,121)

(2,484,513)

(4,039)

(5,775,557)

Other Income

(Expense):

Interest income

7,313

93,298

12,303

283,203

Interest expense

(171,430)

(247,818)

(593,271)

(767,668)

Gain on derivative

liability

2

660,429

51

646,020

Loss before Income

Taxes

(1,236)

(1,978,604)

(4,998,956)

(5,614,002)

Income Tax (Expenses)

Benefits

(345,710)

3,236

(799,273)

(348,024)

Net Loss

(1,973,946)

(1,975,368)

(5,798,229)

(5,962,026)

Other Comprehensive

Income (Loss)

Foreign currency

translation adjustment

2,843,180

1,143,608

1,785,411

(5,417,331)

Total Comprehensive

Income (Loss)

$

869,234

$

(831,760)

$

(4,012,818)

$

(11,379,357)

Losses Per Share:

Basic and Diluted

Losses per Share

$

(0.20)

$

(0.20)

$

(0.53)

$

(0.59)

Outstanding – Basic and

Diluted

10,920

10,920

IT TECH PACKAGING,INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE NINE MONTHS ENDED SEPTEMBER 30,2024 AND 2023

(Unaudited)

Nine Months Ended

September 30,

2024

2023

Cash Flows from Operating Activities:

Net income

$

(5,229)

$

(5,026)

Adjustments to reconcile net income to net cash provided by operating

activities:

Depreciation and amortization

10,346,181

10,573,288

(Gain) Loss on derivative liability

(51)

(646,020)

(Gain) Loss from disposal and impairment of property,plant and equipment

-

956,406

(Recovery from) Allowance for bad debts

30,262

(815,317)

Allowances for inventories,net

(2,951)

-

Changes in operating assets and liabilities:

Accounts receivable

(1,160,996)

(2,037,003)

Prepayments and other current assets

(122,747)

7,968,553

Inventories

(2,108,280)

(2,631,661)

Accounts payable

(4,979)

101,328

Advance from customers

(99,219)

19,140

Related parties

(365,452)

120,298

Accrued payroll and employee benefits

121,000

141,773

Other payables and accrued liabilities

1,651,302

119,132

Income taxes payable

345,270

(413,777)

Net Cash Provided by Operating Activities

2,831,111

7,494,114

Cash Flows from Investing Activities:

Purchases of property,plant and equipment

(315,152)

(9,211,711)

Net Cash Used in Investing Activities

(315,711)

Cash Flows from Financing Activities:

Proceeds from short term bank loans

845,082

852,988

Proceeds from long term loans

-

2,558,963

Repayment of bank loans

(2,957,788)

(5,549,150)

Payment of capital lease obligation

-

(130,470)

Loan to a related party (net)

-

4,264,938

Net Cash (Used in) Provided by Financing Activities

(2,112,706)

1,997,269

Effect of Exchange Rate Changes on Cash and Cash Equivalents

97,740

(366,599)

Net Increase (Decrease) in Cash and Cash Equivalents

500,993

(86,927)

Cash,Cash Equivalents and Restricted Cash - Beginning of Period

4,391,921

9,524,868

Cash,Cash Equivalents and Restricted Cash - End of Period

$

4,892,914

$

9,437,941

Supplemental Disclosure of Cash Flow Information:

Cash paid for interest,net of capitalized interest cost

$

382,493

$

1,118,672

Cash paid for income taxes

$

454,003

$

761,801

Cash and bank balances

4,848

9,941

Restricted cash

478,066

-

Total cash,cash equivalents and restricted cash shown in the

statement of cash flows

4,914

9,941