JOB TITLE IT Tech Packaging Inc. REVISION 3 SERIAL DATE Saturday, June 13, 2020 JOB NUMBER 376362-1 TYPE PAGE NO. i OPERATOR MarielV ANNUAL REPORT 2019 JOB TITLE IT Tech Packaging Inc. REVISION 3 SERIAL DATE Saturday, June 13, 2020 JOB NUMBER 376362-1 TYPE PAGE NO. ii OPERATOR MarielV JOB TITLE IT Tech Packaging Inc. REVISION 3 SERIAL DATE Saturday, June 13, 2020 JOB NUMBER 376362-1 TYPE PAGE NO. iii OPERATOR MarielV Dear Shareholders, I’d like to take this opportunity to provide you with an update on the key achievements of IT Tech Packaging Inc. during 2019, as well as provide an update for 2020 to date. We made a successful turnaround in 2019 as we shook off the effects of the 2018 production suspensions, in part due to our 2018 equipment upgrades. We ended the year 2019 with remarkable improvement of revenues, profits and growth of sales volume, that was partially offset by a 15% year- over-year decrease in blended ASP. Total sales volume of CMP, offset printing paper and tissue paper products during the period increased by 59.5% to 250,144 tonnes. With completion of trial operation of our PM9 production line in the fourth quarter of 2019, our tissue paper products recorded total sales of $6.4 million from both PM8 and PM9 in the year. In addition, with $20.4 million of sales, we delivered 297.8% growth in offset printing paper for 2019. Like most of companies, ITP has been impacted by the COVID-19 pandemic and the situation presented headwinds for our business in the first quarter 2020. We have taken decisive near-term actions in response to COVID-19 while balancing the long-term opportunity. We suspended production from mid-January to early March 2020 and returned to operation in a safe and measured way as local guidelines allow. We thank our employees for their resilience and commitment during this challenging time and for their mutual support of each other and of our customers. Looking ahead, as a leading papermaking enterprise situated in Hebei Province which surrounds Beijing- Tianjin, the largest metropolitan area in North China, we have a large market for our products and easy access to lower costs of raw materials and logistics. Thus, we will continue take such advantages to improve our capabilities to deliver sustainable growth and create long-term value to our shareholders. In addition to our paper products, we are also implementing initiatives in healthcare sectors such as launching a single-use face mask production line to meet domestic market demand for personal protective gear. Performance For 2019, total revenue increased by $30.9 million, or 35.6%, to $117.6 million. The increase in total revenue was primarily due to an increase in sales volume of CMP, Offset Printing Paper and tissue paper products, partially offset by the decrease in ASP of CMP and offset printing paper. Total gross profit increased by $7.9 million, or 135%, to $13.7 million, leading to a gross margin of 11.6% for 2019, compared to gross profit and gross margin of $5.8 million and 6.7%, respectively, for 2018. Net Income was $2.2 million, or $0.10 per basic and diluted share, for 2019, compared to net loss of $10.5 million, or loss per basic and diluted share of $0.49, for 2018. Our cash, cash equivalents and restricted cash as of December 31, 2019 was $5.8 million, a decrease of $2.7 million, from $8.5 million as of December 31, 2018. Net cash provided by operating activities was $7.5 million for 2019, compared to $9.2 million for 2018. In the first quarter of 2020, our financial results recorded decreases as our production was suspended from mid- January 2020 to early March 2020 due to the COVID-19 pandemic outbreak. Despite the unprecedented challenges created by the COVID-19 pandemic, our tissue paper products are in growing demand due to the need to control the spread of COVID-19 and our production lines have been running at full production capacity since April 2020 to fulfill orders secured. In response to the market demand for tissue paper as daily necessities, we are scheduling a new tissue paper production line PM10 which we expect to be launched soon this year. In addition to adding a tissue paper production line, we launched a non-medical face masks production line to meet the huge demand for personal protective gear needed for the public and workers in different industries. As such, we are confident the underlying demand for our products will remain strong and we expect overall performance to improve in the coming quarters. JOB TITLE IT Tech Packaging Inc. REVISION 3 SERIAL DATE Saturday, June 13, 2020 JOB NUMBER 376362-1 TYPE PAGE NO. iv OPERATOR MarielV Key Progress and Initiatives We are making progress with our strategic plans, focusing on several initiatives, including: 1) the commercial launch of tissue paper production line the PM9 and a planned commercial launch of a new tissue paper production line PM10; 2) seeking sustained partnerships with world-leading raw material suppliers to enhance competitiveness of paper products in terms of price and quality. As disclosed in June 2019, the Company and Asia Symbol (Shandong) Pulp and Paper Co. Ltd. agreed to further cooperation into aspects of technologies and enterprise supply chain, based on the existing pulp paper supply cooperation arrangement. The new partnership specifically involves technology exchange between ITP and Asia Symbol on a regular basis, and ITP’s adding into Asia Symbol’s supply chain a traceability system to ensure product quality and that environmental requirements are met; and 3) seeking ways to maximize the use of existing resources through penetrating the healthcare sectors. As previously disclosed in April, 2020, we launched our production line of non-medical single-use face masks, which produces approximately 100,000 single-use face masks per day; and 4) improving our balance sheet and being properly capitalized to achieve our growth objectives which is crucial to our future success. As previously disclosed, we successfully consummated a registered direct offering with certain institutional investors of our common stock and warrants to purchase our common stock in a concurrent private placement transaction, for gross proceeds of $2.6 million in May 2020. We believe that this financing strengthened our balance sheet and provided capital to continue executing our growth strategy. Finally, I would like to thank you for your trust and support of ITP and reiterate our commitment to you, our shareholders. We will remain focused on operating the business and delivering outstanding results for our shareholders and we are committed to upholding the highest standards throughout our business and operations. We plan to continue updating you on the trends we observe and the progress of our business as appropriate. We believe we will emerge well positioned to grow and capture the large opportunity in China’s high-growth paper markets in which our company operates. Sincerely, MR. ZHENYONG LIU Chairman and Chief Executive Officer IT Tech Packaging, Inc. June, 2020 JOB TITLE IT Tech Packaging Inc. REVISION 3 SERIAL DATE Saturday, June 13, 2020 JOB NUMBER 376362-1 TYPE PAGE NO. 1 OPERATOR MarielV UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2019 or ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____________to ______________ Commission file number 001-34577 IT TECH PACKAGING, INC. (Exact name of registrant as specified in its charter) Nevada 20-4158835 State or other jurisdiction of (I.R.S. Employer Incorporation or organization Identification No.) Science Park, Juli Road, Xushui District, Baoding City Hebei Province, The People’s Republic of China 072550 (Address of principal executive offices) (Zip Code) Registrant’s telephone number, including area code: (86) 312-8698215 Securities registered pursuant to Section 12(b) of the Act: Title of each class Trading Symbol(s) Name of each exchange on which registered Common Stock ITP NYSE MKT LLC Securities registered pursuant to section 12(g) of the Act: Common Stock (Title of class) Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. ¨ Yes No Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. ¨ Yes No Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ¨ No Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§ 229.405 of this chapter) is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. ¨ Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.