Operating margins remain deeply negative, frequently dipping into double-digit territory such as the -51.0% reported in 2024Q1, indicating a fundamental inability to scale overhead costs efficiently.
| Metric | TTM | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 |
|---|
| Sales/Revenue | 78.94M | 75.84M | 86.55M | 100.35M | 160.88M | 100.94M | 117.61M | 86.75M | 117.02M | 134.74M | 135.3M | 137.04M | 125.72M | 151.12M | 150.75M | 123.99M | 102.14M | 65.2M | 39.71M | 30.56M |
| Revenue Growth % | -0.28% | -12.37% | -13.76% | -37.62% | 59.38% | -14.17% | 35.58% | -25.87% | -13.15% | -0.41% | -1.27% | 9.01% | -16.81% | 0.25% | 21.58% | 21.39% | 56.65% | 64.21% | 29.93% | - |
| Cost of Goods Sold | 74.45M | 69.15M | 85.55M | 95.6M | 149.86M | 95.24M | 103.94M | 80.93M | 97.07M | 109.21M | 107.44M | 114.26M | 102.39M | 124.06M | 117.8M | 97.81M | 82.11M | 52.64M | 33.1M | 25.23M |
| COGS % of Revenue | - | 91.18% | 98.84% | 95.26% | 93.15% | 94.35% | 88.37% | 93.29% | 82.95% | 81.05% | 79.41% | 83.38% | 81.45% | 82.1% | 78.14% | 78.89% | 80.38% | 80.74% | 83.36% | 82.56% |
| Gross Profit | 4.49M | 6.69M | 999.88K | 4.75M | 11.02M | 5.7M | 13.68M | 5.82M | 19.96M | 25.53M | 27.86M | 22.78M | 23.33M | 27.06M | 32.95M | 26.18M | 20.04M | 12.56M | 6.61M | 5.33M |
| Gross Margin % | 5.69% | 8.82% | 1.16% | 4.74% | 6.85% | 5.65% | 11.63% | 6.71% | 17.05% | 18.95% | 20.59% | 16.62% | 18.55% | 17.9% | 21.86% | 21.11% | 19.61% | 19.26% | 16.64% | 17.44% |
| Gross Profit Growth % | - | 569.25% | -78.97% | -56.85% | 93.22% | -58.32% | 135.03% | -70.83% | -21.84% | -8.36% | 22.31% | -2.35% | -13.79% | -17.89% | 25.88% | 30.65% | 59.51% | 90.06% | 23.96% | - |
| Operating Expenses | 14.42M | 14.9M | 10.58M | 10.06M | 9.56M | 11.16M | 9.78M | 12.86M | 11.27M | 12.4M | 9.11M | 4.84M | 4.4M | 3.36M | 2.52M | 4.19M | 2.03M | 831.83K | 273.94K | 292.83K |
| OpEx % of Revenue | - | 19.65% | 12.22% | 10.02% | 5.94% | 11.05% | 8.32% | 14.82% | 9.63% | 9.2% | 6.73% | 3.53% | 3.5% | 2.22% | 1.67% | 3.38% | 1.99% | 1.28% | 0.69% | 0.96% |
| Selling, General & Admin | 6.05M | 0 | 0 | 0 | 9.56M | 11.16M | 9.71M | 13.1M | 11.31M | 12.4M | 9.66M | 4.86M | 4.57M | 3.36M | 2.52M | 3.07M | 2.03M | 831.83K | 273.94K | 292.83K |
| SG&A % of Revenue | - | - | - | - | 5.94% | 11.05% | 8.25% | 15.1% | 9.66% | 9.2% | 7.14% | 3.55% | 3.63% | 2.22% | 1.67% | 2.48% | 1.99% | 1.28% | 0.69% | 0.96% |
| Research & Development | 99.61K | 99.61K | 90.77K | 145.54K | 0 | 0 | 74.83K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | 0.13% | 0.1% | 0.14% | - | - | 0.06% | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 2M | 14.8M | 10.49M | 9.91M | 0 | 0 | 0 | -241.19K | -41.53K | 0 | -555.61K | -22.61K | -171.13K | 0 | 0 | 1.12M | 0 | 0 | 0 | 0 |
| Operating Income | -9.93M | -8.21M | -9.58M | -5.3M | 1.46M | -5.46M | 3.9M | -11.18M | 4.68M | 12.95M | 18.2M | 17.41M | 18.84M | 20.98M | 30.11M | 21.99M | 18.01M | 11.73M | 6.33M | 5.04M |
| Operating Margin % | -12.57% | -10.83% | -11.06% | -5.29% | 0.91% | -5.4% | 3.31% | -12.89% | 4% | 9.61% | 13.45% | 12.71% | 14.99% | 13.88% | 19.97% | 17.73% | 17.63% | 17.99% | 15.95% | 16.49% |
| Operating Income Growth % | - | 14.26% | -80.52% | -463.48% | 126.75% | -239.97% | 134.86% | -338.92% | -63.86% | -28.82% | 4.5% | -7.59% | -10.18% | -30.33% | 36.96% | 22.1% | 53.53% | 85.15% | 25.73% | - |
| EBITDA | 4.61M | 6.01M | 4.65M | 9.48M | 16.82M | 10.34M | 19.2M | 3.11M | 19.31M | 28.24M | 31.6M | 25.7M | 26.64M | 29.36M | 34.54M | 26.13M | 21.52M | 14.91M | 9.29M | 6.91M |
| EBITDA Margin % | 5.85% | 7.93% | 5.37% | 9.45% | 10.45% | 10.24% | 16.33% | 3.58% | 16.5% | 20.96% | 23.35% | 18.76% | 21.19% | 19.43% | 22.91% | 21.08% | 21.06% | 22.86% | 23.39% | 22.61% |
| EBITDA Growth % | -20.17% | 29.25% | -50.97% | -43.61% | 62.68% | -46.16% | 517.7% | -83.91% | -31.61% | -10.62% | 22.93% | -3.51% | -9.28% | -14.98% | 32.15% | 21.46% | 44.33% | 60.51% | 34.43% | - |
| D&A (Non-Cash Add-back) | 14.54M | 14.22M | 14.23M | 14.79M | 15.36M | 15.79M | 15.3M | 14.29M | 14.63M | 15.29M | 13.4M | 8.29M | 7.79M | 8.38M | 4.42M | 4.15M | 3.51M | 3.18M | 2.95M | 1.87M |
| EBIT | -9.82M | -8.11M | -8.08M | -5.3M | 7.58M | -5.63M | 4.22M | -10.9M | 4.76M | 13.05M | 18.82M | 17.59M | 19.1M | 21.01M | 30.15M | 22.15M | 18.11M | 11.79M | 6.47M | 8.97K |
| Net Interest Income | -589.93K | -747.58K | -669.42K | -1M | -1.09M | -994.48K | -861.65K | -1.46M | -2.4M | -2.52M | -3.09M | -1.3M | -905.43K | -841.16K | -663.46K | -469.83K | -619.82K | -529.15K | -403.03K | 0 |
| Interest Income | 6.59K | 14.79K | 315.1K | 24.26K | 38.77K | 32.03K | 64.72K | 36.63K | 34.59K | 96.98K | 70.32K | 149.78K | 90.26K | 30.67K | 36.44K | 163.18K | 108.61K | 65.32K | 3.35K | 0 |
| Interest Expense | 596.63K | 762.38K | 984.52K | 1.03M | 1.12M | 1.03M | 926.37K | 1.49M | 2.43M | 2.62M | 3.16M | 1.45M | 995.69K | 871.83K | 699.89K | 633.01K | 728.43K | 594.46K | 272.2K | 275.23K |
| Other Income/Expense | -590.03K | -753.18K | -23.19K | 444.56K | 4.99M | -1.2M | -600.51K | -5.12M | -6.33M | -2.7M | -2.53M | -1.78M | -649.34K | -841.49K | -984.65K | -469.83K | -619.82K | -529.15K | -272.2K | -8.97K |
| Pretax Income | -10.52M | -8.96M | -9.6M | -4.86M | 6.45M | -6.66M | 3.3M | -12.4M | 2.32M | 10.43M | 15.67M | 16.14M | 18.11M | 20.14M | 29.45M | 21.52M | 17.39M | 11.2M | 6.06M | 4.76M |
| Pretax Margin % | -13.32% | -11.82% | -11.09% | -4.84% | 4.01% | -6.59% | 2.8% | -14.29% | 1.98% | 7.74% | 11.58% | 11.78% | 14.4% | 13.33% | 19.53% | 17.35% | 17.02% | 17.18% | 15.27% | 15.57% |
| Income Tax | 433.11K | 879.19K | 346.95K | 11.71M | 5.55M | -1.1M | 1.08M | -1.85M | 662.83K | 3.11M | 4.12M | 4.43M | 5.09M | 5.46M | 7.8M | 5.96M | 4.67M | 2.92M | 2M | 1.57M |
| Effective Tax Rate % | -4.12% | -9.81% | -3.61% | -240.98% | 85.97% | 16.55% | 32.64% | 14.93% | 28.54% | 29.87% | 26.32% | 27.46% | 28.13% | 27.14% | 26.48% | 27.72% | 26.84% | 26.12% | 33% | 32.9% |
| Net Income | -10.95M | -9.84M | -9.95M | -16.57M | 905.53K | -5.55M | 2.22M | -10.55M | 1.66M | 7.31M | 11.54M | 11.71M | 13.01M | 14.67M | 21.65M | 15.55M | 12.72M | 8.77M | 4.06M | 3.19M |
| Net Margin % | -13.87% | -12.98% | -11.49% | -16.51% | 0.56% | -5.5% | 1.89% | -12.16% | 1.42% | 5.43% | 8.53% | 8.54% | 10.35% | 9.71% | 14.36% | 12.54% | 12.45% | 13.46% | 10.23% | 10.45% |
| Net Income Growth % | -11.92% | 1.03% | 39.98% | -1930% | 116.3% | -350.05% | 121.06% | -735.36% | -77.3% | -36.64% | -1.4% | -10.05% | -11.3% | -32.22% | 39.21% | 22.26% | 44.97% | 116.02% | 27.21% | - |
| Net Income (Continuing) | -10.95M | -9.84M | -9.95M | -16.57M | 905.53K | -5.55M | 2.22M | -10.55M | 1.66M | 7.31M | 11.54M | 11.71M | 13.01M | 14.67M | 21.65M | 15.55M | 12.72M | 8.27M | 4.06M | 3.19M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -0.92 | -0.98 | -0.99 | -1.66 | 0.15 | -2.10 | 1.01 | -4.88 | 0.80 | 3.40 | 5.70 | 6.10 | 7.10 | 7.90 | 11.80 | 8.90 | 10.40 | 7.70 | 4.00 | 4.23 |
| EPS Growth % | -5.35% | 1.01% | 40.36% | -1206.67% | 107.14% | -307.92% | 120.7% | -710% | -76.47% | -40.35% | -6.56% | -14.08% | -10.13% | -33.05% | 32.58% | -14.42% | 35.06% | 92.5% | -5.44% | - |
| EPS (Basic) | - | -0.98 | -0.99 | -1.66 | 0.15 | -2.10 | 1.01 | -4.90 | 0.80 | 3.40 | 5.70 | 6.10 | 7.10 | 7.90 | 11.80 | 8.90 | 10.40 | 7.70 | 4.00 | 4.23 |
| Diluted Shares Outstanding | 11.91M | 10.07M | 10.07M | 9.97M | 5.98M | 2.65M | 2.2M | 2.16M | 2.15M | 2.14M | 2.03M | 1.93M | 1.85M | 1.85M | 1.83M | 1.74M | 1.22M | 1.08M | 1M | 754.53K |
| Basic Shares Outstanding | 11.91M | 10.07M | 10.07M | 9.97M | 5.98M | 2.65M | 2.2M | 2.15M | 2.15M | 2.14M | 2.03M | 1.93M | 1.85M | 1.85M | 1.83M | 1.74M | 1.22M | 1.08M | 1M | 754.53K |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | 2.48% | 4.72% | - | - | - | - | - | - |
Structural operating margin insolvency
As reported in recent quarterly filings, ITP's revenue trajectory remains highly erratic, oscillating between a 58.8% surge in 2025Q1 and a 15.8% contraction in 2024Q4, suggesting that the company's top-line performance is driven more by opportunistic spot-market fluctuations than by consistent, durable demand for its packaging products.
The lack of a clear growth trend indicates that ITP struggles to maintain stable customer relationships or pricing power within the competitive Hebei industrial cluster. Investors should monitor whether the recent 2.1% growth in 2025Q3 represents a stabilization or merely another temporary deviation in a broader pattern of cyclical decline.
Based on the company's financial statements, gross margins have consistently struggled to exceed the low single digits, bottoming out at -1.0% in 2023Q3, which highlights a fundamental inability to pass through volatile raw material costs to downstream customers in a highly commoditized and fragmented regional market.
The persistent gap between gross and operating margins suggests that the company's fixed-cost base is far too heavy for its current revenue scale. This structural weakness implies that any minor increase in input costs, such as recycled fiber prices, immediately threatens the company's ability to maintain positive gross profitability.
According to historical income statement data, ITP has failed to achieve positive operating leverage, with operating margins frequently dipping into double-digit negative territory, such as the -51.0% reported in 2024Q1, indicating that overhead costs are not scaling efficiently with the company's fluctuating production volumes.
The inability to generate positive operating income even during periods of revenue growth suggests that the company's production assets are significantly underutilized. This lack of operating leverage warrants further investigation into whether the current facility footprint is oversized for the company's actual market share in the Hebei region.
Analysis of the provided income statements reveals that ITP has reported negative net income in nine of the last ten quarters, a trend that suggests the company is effectively consuming its capital base to sustain operations rather than generating a return on its invested capital for shareholders.
Short-sellers would likely focus on the fact that the company's core business model appears incapable of covering its own operating expenses, leading to a reliance on existing cash reserves. This trajectory raises significant questions regarding the long-term sustainability of the business without a major strategic pivot or external capital injection.
Quick answers to the most common questions about buying ITP stock.
For fiscal year 2024, IT Tech Packaging, Inc. (ITP) reported total revenue of $75.8M. This represents a 148.2% increase compared to $30.6M in 2006.
IT Tech Packaging, Inc. (ITP) reported a net loss of $9.8M for the fiscal year ending 2024.
IT Tech Packaging, Inc. (ITP) reported an operating income of $-8.2M, resulting in an operating profit margin of -10.8%. This margin reflects the operational efficiency of the business before interest and taxes.
IT Tech Packaging, Inc. (ITP) generated $6.7M in gross profit for the year, representing a gross profit margin of 8.8%. This demonstrates the company's core pricing power and production efficiency.