IT Tech Packaging, Inc. Releases 2022 Chairman Letter

BAODING, China, Jan. 4, 2022 /PRNewswire/ -- 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 released a letter to shareholders from the Chairman of the Company's board of directors.

Dear Shareholders,

We are grateful for your continuous support. As we close out the year 2021, we are pleased to take this opportunity to share with you our business developments and significant achievements during 2021, and also provide some insights in our strategic direction.

2021 is the first year of China 14th Five-Year Plan (2021-2025) for National Economic and Social Development and Long-Range Objectives for 2035, and it is also a key year for the Company to optimize its business development. While encountering tremendous challenges associated with COVID-19 pandemic,we are proud to see the result that, given our rigorous enforcement of preventive measures to protect the safety and health of our employees during the pandemic, none of our employees was infected. Furthermore, the Company also launched new projects in 2021 despite the headwinds of COVID-19 pandemic.

Business Development Optimization:

Since the end of November 2021, the Company has officially started surgical masks production, which complies with China's pharmaceutical industry standard YY0469-2011. The annual production capacity of the surgical masks is expected to reach 38 million pieces with gross profit margin of approximately 35%. The Company's surgical masks have been sold to the local companies in catering or sanitation industries, and the Company has also obtained bidding qualifications from various pharmaceutical companies and hospitals.

The Company obtained qualifications to supply central heating in industrial parks with its combined heat and power generation project utilizing biomass technology ("Biomass CHP Project" or "the Project") and the Project has officially started construction. With successful operation of the Biomass CHP Project, it will not only meet the Company's own energy needs, but will also generate significant revenues by supplying industrial gas to enterprises operating in the industrial parks and heating and electricity to nearby residential.

Corporate Social Responsibility Practice:

In July 2021, the Company has donated disaster relief household goods including masks and essential household goods to Xinxiang city of Henan province, where was affected by severe flooding, caused by a prolonged period of heavy rainfall. The household goods departed from Xingtai city of Hebei province and delivered to a donation center at a middle school in Xinxiang city, to help people affected by the disaster.

Research and Development Achievement:

The Company's tissue paper research and development center has received a Level B scale-above Certification as an industrial R&D enterprise institution in Hebei province after on-site inspection by regulators. The Company has also been granted a number of new utility patent certificates on paper manufacturing related equipment issued by the State Intellectual Property Office, including equipment testing, screening and filtering, and mixing. The granted certificates mark the Company's achievements in technologies are protected and recognized as intellectual property rights and laid a solid foundation for the sustainable development of the Company's technology innovation in the future.

Market Opportunities:

On January 8, 2008, The General Office of the State Council issued a notice on restricting the production, sale and use of plastic shopping bags, which banned the production, sale and use of ultra-thin plastic bags nationwide from June 1, and implemented a system of paying for the use of plastic bags. With the implementation of the "Plastic Ban" policy, the market opportunities of paper industry in China have grown rapidly, and the demand for paperboard has increased by more than 10 million tons according to the data from Vzkoo.com. The paper products have become the primary choice for non-degradable plastic substitutes, and the Chinese market scale of paper industry will be further expanded in the foreseeable future.

Growth Strategies for 2022:

The Company will develop marketing channels, expand customer base, and strengthen social responsibilities with its advantages in technology, research and development capacity, and geography as always.

The Company will continue to focus on paper products, by making full use of  production capacity and achieving improvement in product quality and effective cost control, to increase profitability and operation efficiency.

The Company will promote the construction of Biomass CHP Project as we aim to create long-term value for shareholders and enhance its brand recognition.

Looking forward, the Company is committed to creating value for its customers, employees, shareholders, partners, industry and society by seizing new opportunities and diversifying businesses.

We would like to thank our team for their hard work and our shareholders for their continued support. We will remain intact and fully dedicated to drive our business growth while seizing upcoming opportunities. We strongly believe we will continuously create value and bring all of our shareholders in sustained returns.

Zhenyong Liu

Chairman and Chief Executive Officer

IT Tech Packaging, Inc.

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 in North 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 in North China's Hebei Province, ITP is located strategically close to the Beijing and Tianjin region, 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 since December 2009. For more information, please visit: http://www.itpackaging.cn/.

Safe Harbor Statements

This press release may contain forward-looking statements. These forward-looking statements involve inherent risks and uncertainties that could cause actual results to differ materially from those projected or anticipated, including risks outlined in the Company's public filings with the Securities and Exchange Commission, including the Company's latest annual report on Form 10-K. All information provided in this press release speaks as of the date hereof. Except as otherwise required by law, the Company undertakes no obligation to update or revise its forward-looking statements.

For more information, please contact:

At the Company
Email: [email protected]
Tel: +86 0312 8698215

Investor Relations:
Ascent Investor Relations LLC
Ms. Tina Xiao
Email: [email protected]
Tel: +1 917 609 0333

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SOURCE IT Tech Packaging, Inc.