IT Tech Packaging, Inc. (ITP), a company that produces and distributes paper products in China, has declined 5.17% in aftermarket trading session. As a result, ITP stock is trading at $0.32 at the time of the writing. There was no obvious reason for the decline except for the fact that the harsh policies by Chinese regulators are proving pernicious for Chinese stocks. On Thursday, ITP closed the day at $0.34 after increasing 1.19% during regular trading hours. Let’s discuss some recent developments related to ITP stock.
ITP Q3 2021 Financial Results
On 10th November, ITP released the financial results for the third quarter of the fiscal year 2021. The quarter ended on 30th September 2021. The company had a cash and bank balance of $26.57 million on 30th September 2021. The revenue generated by the company during the period was $45.08 million against $33.35 million for the same period of 2020. The Selling, General, and Administrative expenses for the period were $2.01 million against $2.39 million for the same period of 2020. The net income generated by the company during the quarter was $1.54 million against $0.52 million for the same period of 2020. The net income per share for the three months was $0.03 against the net loss of $0.02 per basic and diluted share for the same three-month period of 2020.
Alongside the financial results, ITP also reported the recent business highlights. The company announced the approval for surgical mask products from US FDA on 26th May 2021. The company also showed results for the required period to the public. On 6th July, the company announced that its tissue paper research and development centre had received a Level B scale-above Certification as an industrial R&D enterprise institution in Hebei province after the on-site inspection by regulators.
Mr. Zhenyong Liu, Chairman and Chief Executive Officer of ITP, while commenting on the results said that the company is continually making improvements in its sales sector. He said that the total revenue generated during the first nine months of the fiscal year has increased by approximately 70%. He hoped that the company would be much better in the upcoming quarters.
Future Outlook for ITP
The last 12 months have seen ITP stock decline by about 50%. The reason was the uncertainty associated with the stock for its tussle with FDA. However, as the company has been granted FDA approval recently, ITP stock is on track to rise extraordinarily in the coming weeks.