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,
 2023

 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 American

 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 whether the registrant
has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405
of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes
 No

 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.

 Large accelerated filer

 Accelerated filer

 Non-accelerated filer

 Smaller reporting company

 Emerging growth company

 If an emerging growth company, indicate by check
mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting
standards provided pursuant to Section 13(a) of the Exchange Act.

 Indicate by check mark whether the registrant
has filed a report on and attestation to its management's assessment of the effectiveness of its internal control over financial
reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or
issued its audit report.

 If securities are registered pursuant to Section
12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction
of an error to previously issued financial statements.

 Indicate by check mark whether any of those error corrections are restatements
that required a recovery analysis of incentive-based compensation received by any of the registrant's executive officers during
the relevant recovery period pursuant to §240.10D-1(b).

 Indicate by check mark whether the registrant is a shell company (as
defined in Rule 12b-2 of the Act). Yes
No

 The aggregate market value of the voting and non-voting common stock
of the registrant held by non-affiliates as of June 30, 2023 was approximately $ 4,476,376 based upon 9,524,204 shares of common stock
held by non-affiliates and the closing price of the common stock of $0.47 per share on June 30, 2023.

 As of March 27, 2024, there were 10,065,920 shares of the registrant's
common stock, par value $0.001, issued and outstanding.

 DOCUMENTS INCORPORATED BY REFERENCE: None.

 Page

 Item 1.

 BUSINESS

 Item 1A.

 RISK FACTORS

 Item 1B.

 UNRESOLVED STAFF COMMENTS

 Item 1C

 CYBERSECURITY

 Item 2.

 PROPERTIES

 Item 3.

 LEGAL PROCEEDINGS

 Item 4.

 MINE SAFETY DISCLOSURES

 Item 5.

 MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES

 Item 6.

 [RESERVED]

 Item 7.

 MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

 Item 7A.

 QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

 Item 8.

 FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

 Item 9.

 CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

 Item 9A.

 CONTROLS AND PROCEDURES

 Item 9B.

 OTHER INFORMATION

 Item 9C.

 DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTION.

 Item 10.

 DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

 Item 11.

 EXECUTIVE COMPENSATION

 Item 12.

 SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

 Item 13.

 CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE

 Item 14.

 PRINCIPAL ACCOUNTANT FEES AND SERVICES

 Item 15.

 EXHIBITS AND FINANCIAL STATEMENT SCHEDULES

 Item 16

 FORM 10-K SUMMARY

 SIGNATURES

 i

 INTRODUCTION

 All references to "we,"
"us," "our," or similar terms used in this annual report refer to IT Tech Packaging, Inc., a Nevada corporation,
including its wholly-owned subsidiaries, and, in the context of describing our operations and consolidated financial information, our
variable interest entity in China, Hebei Baoding Dongfang Paper Milling Company Limited, or Dongfang Paper. "IT Tech Packaging"
refers to IT Tech Packaging, Inc. "VIE" or "Dongfang Paper" refers to our variable interest entity in China. "Baoding
Shengde" refers to our wholly-owned subsidiary, Baoding Shengde Paper Co., Ltd, a PRC company. "Qianrong", refers to
our indirect wholly-owned subsidiary, QianrongQianhui Hebei Technology Co., Ltd, a PRC company. "Tengsheng Paper" refers to
the subsidiary of Dongfang Paper, Hebei Tengsheng Paper Co., Ltd., a PRC company.

 All references to "PRC"
or "China" refers to the People's Republic of China, including, for the purpose of this annual report, Taiwan, Hong
Kong and Macau; all references to "RMB" or "Renminbi" refer to the legal currency of China; all references to
"US$," "dollars," "U.S. dollars" and "$" refer to the legal currency of the United States.

 This annual report on Form 10-K includes our
audited consolidated statements of income and comprehensive income and our audited consolidated balance sheets as of December 31, 2023
and 2022.

 FORWARD LOOKING STATEMENTS

 This Annual Report on Form
10-K contains "forward-looking statements." These statements are made under the "safe harbor" provisions of the
U.S. Private Securities Litigation Reform Act of 1995. You can identify these forward-looking statements by terms such as "may,"
"will," "expects," "anticipates," "future," "intend," "plan,"
"believe," "estimate," "is/are likely to" and similar expressions. These statements involve known
and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different
from those expressed or implied by the forward-looking statements. Factors that could cause or contribute to such differences in results
and outcomes include, without limitation, our anticipated revenues from the corrugating medium paper business segment and offset printing
paper business, our ability to implement the planned capacity expansion of tissue paper, our ability to introduce new products, market
acceptance of new products, general economic and business conditions, the ability to attract or retain qualified senior management personnel
and research and development staff, and those specifically addressed under the headings "Risks Factors" and "Management's
Discussion and Analysis of Financial Condition and Results of Operations." The forward-looking statements made in this annual report
relate only to events as of the date on which the statements are made. We undertake no obligation, beyond any than as required by law,
to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made, even though
our situation changes in the future.

 We operate in an emerging
and evolving environment. New risk factors emerge from time to time and it is impossible for our management to predict all risk factors,
nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual
results to differ materially from those contained in any forward-looking statement.

 ii

 Item 1. Business

 IT Tech Packaging, Inc.
(the "Company," "IT Tech Packaging," or "ITP") is not an operating company but a Nevada holding company
with operations primarily conducted by its subsidiaries and through contractual arrangements with Hebei Baoding Dongfang Paper Milling
Company Limited, a People's Republic of China company ("Dongfang Paper"), the variable interest entity, or VIE, based
in China. IT Tech Packaging operated its business in China through its wholly-owned PRC subsidiaries, namely Baoding Shengde Paper Co.,
Ltd., a People's Republic of China company ("Baoding Shengde") and QianrongQianhui Hebei Technology Co., Ltd., a People's
Republic of China company ("Qianrong") (together with Baoding Shengde, the "PRC Subsidiaries"), and Dongfang Paper,
which we refer to as our VIE in this annual report, and rely on contractual arrangements that establish the VIE structure among Baoding
Shengde, the VIE and VIE's shareholders to operate our business in China.

 IT Tech Packaging is a Nevada
holding company with no operations of its own. Operations in China are primarily conducted through Dongfang Paper, the consolidated VIE.
Dongfang Paper is consolidated for accounting purposes but is not an entity in which you own equity.

 Investors in our common
stock should be aware that they may never directly hold equity interests in the Chinese operating entities, but rather purchasing equity
solely in IT Tech Packaging Inc., our Nevada holding company, which does not directly own substantially all of our business in China conducted
by our PRC Subsidiaries and VIE. As a holding company with no material operations of our own, we conduct our operations through the VIE
established in the PRC. We do not have any equity ownership of the VIE; instead, we control and receive the economic benefits of the VIE's
business operations through the VIE Agreements, and we consolidate the VIE for accounting purposes only because we met the conditions
under the U.S. GAAP to consolidate the VIE. The VIE Agreements are used to provide contractual exposure to foreign investment in China-based
companies where Chinese law prohibits direct foreign investment in the Chinese operating companies. Pursuant to the VIE Agreements, the
VIE pays service fees equal to 80% of its total annual net profits to Baoding Shengde, while Baoding Shengde has the power to direct the
activities of the VIE that can significantly impact the VIE's economic performance and has the right to receive substantially all
of the economic benefits of the VIE. Such contractual arrangements are designed so that the operations of the VIE are solely for the benefit
of Baoding Shengde and ultimately, ITP. As such, under the U.S. GAAP, ITP is deemed to have a controlling financial interest in, and be
the primary beneficiary of, the VIE for accounting purposes and must consolidate the VIE.

 As a result of the prohibitions
on direct investments by foreign enterprises, we conduct our production and distribution of paper products and medical face masks in China
primarily through a series of VIE Agreements among Baoding Shende, the VIE and the VIE's shareholders. Substantially all of the
VIE's operations are conducted in China in the paper making industry, over which the Chinese government exercises significant oversight
and discretion. Due to PRC legal restrictions on foreign ownership in the paper making industry, ITP is unable to own any equity interest
in the consolidated VIE. The VIE structure is used to provide investors with exposure to foreign investment in China-based companies where
PRC laws restrict direct foreign investment in certain aspects of the paper making industry in which the VIE operates. As a result, you
are not directly investing in and may never hold equity interests in the VIE in China. The VIE structure involves unique risks to investors.
The VIE Agreements have not been tested in a court of law and may not be effective in providing control over the VIE as would direct equity
ownership. We are subject to risks due to the uncertainty of the interpretation and application of the laws and regulations of the PRC
regarding the consolidated VIE and the VIE structure, including, but not limited to, regulatory review of overseas listing of PRC companies
through a special purpose vehicle and the validity and enforcement of the contractual arrangements with the consolidated VIE. We are also
subject to the risk that the Chinese regulatory authorities could disallow the VIE structure, which could result in a material change
in the operations of us, the consolidated VIE and the value of ITP's securities could decline or become worthless.

 We have evaluated the guidance
in FASB ASC 810 and determined that the Baoding Shengde is the primary beneficiary of the VIE that is party to the relevant VIE Agreements
for accounting purposes, because, pursuant to the VIE Agreements, shareholders of the VIE lack the right to receive any expected residual
returns from the VIE, shareholders of the VIE lack the ability to make decisions about the activities of the VIE that have a significant
effect on their operation and substantially all of the VIE's businesses are conducted on behalf of ITP or its subsidiaries. Such
contractual arrangements are designed so that the operations of the VIE are solely for the benefit of Baoding Shengde and, ultimately,
ITP. ITP has indirect ownership in 100% of the equity in Baoding Shengde. Accordingly, under U.S. GAAP, we treat the VIE as a consolidated
affiliated entity and have consolidated its financial results in our financial statements. As used in this annual report, "we,"
"ITP," "us," "our company" and "our" refers to ITP and its subsidiaries, and, in the context
of describing the operations and consolidated financial information, "we, the consolidated VIE and its subsidiary".

 We are also subject to legal
and operational risks associated with being based in and having the majority of the Company's operations in China. These risks may
result in a material change in our operations, or a complete hindrance of our ability to offer or continue to offer our securities to
investors, and could cause the value of such securities to significantly decline or become worthless. Recently, the PRC government initiated
a series of regulatory actions and made a number of public statements on the regulation of business operations in China with little advance
notice, including cracking down on illegal activities in the securities market, enhancing supervision over China-based companies listed
overseas using a VIE structure, adopting new measures to extend the scope of cybersecurity reviews, and expanding efforts in anti-monopoly
enforcement. We do not believe that these regulatory actions or statements impact our ability to conduct our business, accept foreign
investments, or list on a U.S. or other foreign exchange. But because these statements and regulatory actions are new, it is highly uncertain
how soon legislative or administrative regulation making bodies in China will respond to them, or what existing or new laws or regulations
will be modified or promulgated, if any, or the potential impact such modified or new laws and regulations will have on the consolidated
VIE's daily business operations or ITP's ability to accept foreign investments and remain listed on the NYSE American. For
a description of relevant risks related to our corporate structure, see " Risk Factors – Risks Relating to Doing Business
in China" and "Risk Factors – Risks Relating to Our Corporate Structure."

 Corporate History

 IT Tech Packaging was incorporated
in the State of Nevada on December 9, 2005, under the name "Carlateral, Inc." Through the steps described below, we became
the holding company with operations primarily conducted by our subsidiaries and our VIE, Dongfang Paper, a producer and distributor of
paper products in China, on October 29, 2007. Effective on August 1, 2018, we changed our corporate name to "IT Tech Packaging,
Inc." The name change was effected through a parent/subsidiary short-form merger of IT Tech Packaging, Inc., our wholly-owned Nevada
subsidiary formed solely for the purpose of the name change, with and into us. We were the surviving entity. In connection with the name
change, our common stock began being traded under a new NYSE symbol, "ITP," at such time.

 On October 29, 2007, pursuant
to an agreement and plan of merger (the "Merger Agreement"), the Company acquired Dongfang Zhiye Holding Limited ("Dongfang
Holding"), a corporation formed on November 13, 2006 under the laws of the British Virgin Islands, and issued the shareholders of
Dongfang Holding an aggregate of 7,450,497 (as adjusted for a four-for-one reverse stock split effected in November 2009) shares of our
common stock, which shares were distributed pro-rata to the shareholders of Dongfang Holding in accordance with their respective ownership
interests in Dongfang Holding. At the time of the Merger Agreement, Dongfang Holding owned all of the issued and outstanding stock and
ownership of Dongfang Paper and such shares of Dongfang Paper were held in trust with Zhenyong Liu, Xiaodong Liu and Shuangxi Zhao, for
Mr. Liu, Mr. Liu and Mr. Zhao (the original shareholders of Dongfang Paper) to exercise control over the disposition of Dongfang Holding's
shares in Dongfang Paper on Dongfang Holding's behalf until Dongfang Holding successfully completed the change in registration of
Dongfang Paper's capital with the relevant PRC Administration of Industry and Commerce as the 100% owner of Dongfang Paper's
shares. As a result of the merger transaction, Dongfang Holding became a wholly owned subsidiary of the Company, and Dongfang Holding's
wholly owned subsidiary, Dongfang Paper, became an indirectly owned subsidiary of the Company.

 Dongfang Holding, as the
100% owner of Dongfang Paper, was unable to complete the registration of Dongfang Paper's capital under its name within the proper
time limits set forth under PRC law. In connection with the consummation of the restructuring transactions described below, Dongfang Holding
directed the trustees to return the shares of Dongfang Paper to their original shareholders, and the original Dongfang Paper shareholders
entered into certain agreements with Baoding Shengde Paper Co., Ltd. ("Baoding Shengde") to transfer the control of Dongfang
Paper over to Baoding Shengde.

 On June 24, 2009, the Company
consummated a number of restructuring transactions pursuant to which it acquired all of the issued and outstanding shares of Shengde Holdings
Inc., a Nevada corporation. Shengde Holdings Inc. was incorporated in the State of Nevada on February 25, 2009, and holds a wholly-owned
subsidiary, Baoding Shengde, a limited liability company organized under the laws of the PRC on June 1, 2009. Because Baoding Shengde
is a wholly-owned subsidiary of Shengde Holdings Inc., it is regarded as a wholly foreign-owned entity under PRC law.

 Effective June 24, 2009,
Baoding Shengde, Dongfang Paper and the original shareholders of Dongfang Paper entered into a number of contractual arrangements, as
subsequently amended on February 10, 2010, pursuant to which Baoding Shengde acts as the management company for Dongfang Paper, and Dongfang
Paper conducts the principal operations of the business. The contractual arrangements, as amended, effectively transferred the preponderance
of the economic benefits of Dongfang Paper to Baoding Shengde, and as a result, Baoding Shengde assumed effective control and management
over, is considered the primary beneficiary of Dongfang Paper for accounting purposes and we consolidate Dongfang Paper's operating
results in IT Tech Packaging's financial statements under U.S. GAAP. The contractual arrangements, as amended, include the following:

 (i)
 Exclusive Technical Service and Business Consulting Agreement

 The exclusive technical
service and business consulting agreement, entered into by and between Baoding Shengde and Dongfang Paper, provides that Baoding Shengde
shall provide exclusive technical, business and management consulting services to Dongfang Paper, in exchange for service fees including
a fee equivalent to 80% of Dongfang Paper's total annual net profits. The agreement is terminable upon mutual written agreement.

 (ii)
 Call Option Agreement

 The call option agreement,
entered into by and between Baoding Shengde, Dongfang Paper and the shareholders of Dongfang Paper, provides that the shareholders of
Dongfang Paper irrevocably grant to Baoding Shengde an option to purchase all or part of each shareholder's equity interest in Dongfang
Paper. The exercise price for the options shall be RMB yuan for each of the shareholders' equity interests, or if at any time there
are PRC laws regulating the minimum exercise price of such options, then to the extent permitted under PRC Law. The call option agreement
contains covenants from Dongfang Paper and its shareholders that they will refrain from taking certain actions without Baoding Shengde's
consent that would materially affect Dongfang Paper's operations and asset value, including (i) supplementing or amending its articles
of association or bylaws, (ii) changing Dongfang Paper's registered capital or shareholding structure, (iii) selling, transferring,
mortgaging or disposing of any interests in Dongfang Paper's assets or income, or encumbering Dongfang Paper's assets or income
in a way that would approve a security interest on such assets, (iv) incurring or guaranteeing any debts not incurred in its normal business
operations, (v) entering into any material contract or urging Dongfang Paper management to dispose of any Dongfang Paper assets, unless
it is within the company's normal business operations; (vi) providing any loan or guarantee to any third party; (vii) appointing
or removing any management personnel or directors that can be changed upon Dongfang Paper shareholder approval; (viii) declaring or distributing
any dividends to the stockholders. The agreement remains effective until Baoding Shengde or its designees have acquired 100% of the equity
interests of Dongfang Paper underlying the options.

 (iii)
 Share Pledge Agreement

 The share pledge agreement
entered into by and between Baoding Shengde, Dongfang Paper and the shareholders of Dongfang Paper, provides that the Dongfang Paper shareholders
will pledge all of their equity interests in Dongfang Paper to Baoding Shengde as security for their obligations under the other management
agreements described in this section. Specifically, Baoding Shengde is entitled to dispose of the pledged equity interests in the event
that the Dongfang Paper shareholders or Dongfang Paper fails to pay the service fees to Baoding Shengde pursuant to the exclusive technical
service and business consulting agreement or fails to perform their other obligations under the other management agreement. The agreement
contains covenants from Dongfang Paper's shareholders that they will refrain from taking certain actions without Baoding Shengde's
prior written consent, such as transferring or assigning their equity interests, or creating or permitting the creation of any pledges
which may have an adverse effect on the rights or benefits of Baoding Shengde under the agreement. The Dongfang Paper shareholders also
promise to comply with the laws and regulations relevant to the pledges under the agreement and to facilitate in good faith the protection
of the ability of Baoding Shengde to exercise its rights under the agreement. The terms of the share pledge agreement remains in effect
until all the obligations under the other management agreements have been fulfilled, whether or not the terms of the other management
agreements have expired.

 (iv)
 Proxy Agreement

 The proxy agreement, entered
into by and between Baoding Shengde, Dongfang Paper and the shareholders of Dongfang Paper, provides that the Dongfang Paper shareholders
shall irrevocably entrust a designee of Baoding Shengde with such shareholder's voting rights and the right to represent such shareholder
to exercise his or her rights at any shareholder's meeting of Dongfang Paper or with respect to any shareholder action to be taken
in accordance with the laws and Dongfang Paper's Articles of Association. The terms of the agreement are binding on the parties
for as long as the Dongfang Paper shareholders continue to hold any equity interest in Dongfang Paper. Dongfang Paper shareholder will
cease to be a party to the agreement once it transfers its equity interests with the prior approval of Baoding Shengde.

 On June 24, 2009, Zhao Tianqing,
the sole shareholder of Shengde Holdings Inc., assigned to the Company, for good and valuable consideration, 100 shares representing 100%
of the issued and outstanding shares of Shengde Holdings Inc. As a result of this assignment and the restructuring transactions described
above, Shengde Holdings Inc., Baoding Shengde, and Dongfang Paper became directly and indirectly controlled by the Company, and Dongfang
Paper continued to function as the Company's operating entity.

 In addition to controlling
the operations and beneficial ownership of Dongfang Paper, Baoding Shengde also acquired a digital photo paper production line (including
two photo paper coating lines and ancillary equipment) in an asset acquisition transaction on November 25, 2009 and began directly conducting
business in the PRC. We suspended production of photo paper in June 2016 and now are upgrading the production line to produce more competitive
photo paper products.

 An agreement was entered
into among Baoding Shengde, Dongfang Paper and the shareholders of Dongfang Paper on December 31, 2010, reiterating that Baoding Shengde
is entitled to the distributable profit of Dongfang Paper, pursuant to the above mentioned Exclusive Technical Service and Business Consulting
Agreement. In addition, Dongfang Paper and the shareholders of Dongfang Paper agreed that they would not declare any of Dongfang Paper's
unappropriated earnings, including any earnings of Dongfang Paper from its establishment to 2010 and thereafter, as dividend.

 The contractual agreements described above have not been tested
in a court of law.

 The diagram below illustrates
our corporate structure and contractual arrangements with respect to each of our subsidiaries and consolidated VIE and the place of incorporation
of each named entity as of the date of this annual report:

 The following diagram sets forth the current ownership of
Dongfang Paper:

 Our subsidiaries and the VIE in which our operations are conducted
include:

 Baoding Shengde Paper Co., Ltd. ("Baoding Shengde") is a PRC entity that is 100% indirectly owned by the Company. Baoding
Shengde has entered into VIE agreements with the VIE identified below.

 Each of the following, which are PRC companies that are consolidated with the Company:

 1. Hebei
Baoding Dongfang Paper Milling Co., Ltd. ("Dongfang Paper") is a PRC entity that entered into VIE Agreements with Baoding
Shengde; Dongfang Paper is the VIE.

 2.
 Hebei Tengsheng Paper Co., Ltd. ("Tengsheng") is a PRC entity that is 100% owned by Dongfang Paper.

 QianrongQianHui Hebei Technology Co., Ltd. ("Qianrong") is a PRC entity, incorporated on July 15, 2021, that is 100% indirectly
owned by the Company.

 Shengde Holdings Inc., a Nevada company and our wholly-owned U.S. subsidiary, and Dongfang Zhiye Holding Limited, a British Virgin
Islands company, are subsidiaries outside of China. Dongfang Zhiye Holding Limited has been inactive since 2010.

 Recent Regulatory Developments

 On January 4, 2022, the
Cyberspace Administration of China, or CAC, issued the revised Measures on Cyberspace Security Review (the "Revised Measures"),
which came into effect on February 15, 2022. Under the Revised Measures, any "network platform operator" controlling personal
information of no less than one million users which seeks to list in a foreign stock exchange should also be subject to cybersecurity
review.

 We do not believe we are
"network platform operator" who control over one million personal information as mentioned above; as such, we believe we are
currently not be subject to the cybersecurity review by the CAC. However, the definition of "network platform operator" is
unclear and it is also unclear on how it will be interpreted and implemented by the relevant PRC governmental authorities. See " Risk
factors — Risk Factors Relating to Doing Business in China — Our business may be subject to a variety of PRC laws and
other obligations regarding cybersecurity and data protection."

 On July 6, 2021, the relevant
PRC governmental authorities made public the Opinions on Strictly Cracking Down Illegal Securities Activities in Accordance with the Law.
These opinions emphasized the need to strengthen the administration over illegal securities activities and the supervision on overseas
listings by China-based companies and proposed to take effective measures, such as promoting the construction of relevant regulatory systems
to deal with the risks and incidents faced by China-based overseas-listed companies. As these opinions are recently issued, official guidance
and related implementation rules have not been issued yet and the interpretation of these opinions remains unclear at this stage. See
" Risk Factors — Risk Factors Relating to Doing Business in China — While the approval and/or other requirements of
the CSRC or other PRC governmental authorities are currently not required, they may be required, in connection with our oversea listing
under PRC rules, regulations or policies, and, if required, we cannot predict whether or how soon we will be able to obtain such approval."
As of the date of this annual report, we have not received any inquiry, notice, warning, or sanctions regarding listing abroad or offshore
offering from the CSRC or any other PRC governmental authorities.

 We believe that we are currently
not required to obtain any permission or approval from the China Securities Regulatory Commission ("CSRC") and Cyberspace
Administration of China ("CAC") in the PRC to issue securities to foreign investors. However, there is no guarantee that this
will continue to be the case in the future in relation to any future offerings of our company or the continued listing of our company's
securities on the NYSE American, or even in the event such permission or approval is required and obtained, it will not be subsequently
revoked or rescinded. If we do not receive or maintain the approvals, or we inadvertently conclude that such approvals are not required,
or applicable laws, regulations, or interpretations change such that we are required to obtain approval in the future, we may be subject
to an investigation by competent regulators, fines or penalties, or an order prohibiting us from conducting an offering, and these risks
could result in a material adverse change in our operations and the value of our securities, significantly limit or completely hinder
our ability to offer or continue to offer securities to investors, or cause such securities to significantly decline in value or become
worthless.

 On February 17, 2023, the
CSRC released the Trial Administrative Measures for Administration of Overseas Securities Offerings and Listings by Domestic Companies
(the "Trial Measures") and five supporting guidelines, which came into effect on March 31, 2023. Pursuant to the Trial Measures,
domestic companies that seek to offer or list securities overseas, both directly and indirectly, should fulfill the filing procedures
and report relevant information to the CSRC. If a domestic company fails to complete the filing procedures or conceals any material fact
or falsifies any major content in its filing documents, such domestic company may be subject to administrative penalties by the CSRC,
such as order to rectify, warnings, fines, and its controlling shareholders, actual controllers, the person directly in charge and other
directly liable persons may also be subject to administrative penalties, such as warnings and fines. As a listed company, we believe that
we, all of our PRC Subsidiaries, the consolidated VIE and its subsidiary are not required to fulfill filing procedures and obtain approvals
from the CSRC to continue to offer our securities or operate business of the consolidated VIE and its subsidiary as of the date of this
annual report. In addition, to date, none of us, our PRC Subsidiaries, the consolidated VIE and its subsidiary has received any filing
or compliance requirements from CSRC for the listing of the Company at NYSE American and all of its overseas offerings. Furthermore, based
on our understanding of the current PRC laws, we believe that the CSRC's approval is not required to be obtained for the Company's
listing on NYSE American; however, there are substantial uncertainties regarding the interpretation and application of the Regulation
on Mergers and Acquisitions of Domestic Companies by Foreign Investors ("M&A Rules"), other PRC Laws and future PRC laws
and regulations, and there can be no assurance that any governmental agency will not take a view that is contrary to or otherwise different
from our belief stated herein. See " Risk Factors — Risk Factors Relating to Doing Business in China — The
CSRC has released the Trial Measures for Administration of Overseas Securities Offerings and Listings by Domestic Companies (the "Trial
Measures"). While such rules have become into effect, the Chinese government may exert more oversight and control over offerings
that are conducted overseas and foreign investment in China-based issuers, which could significantly limit or completely hinder our ability
to continue to offer our securities to investors and could cause the value of our securities to significantly decline or become worthless "

 On December 24, 2021, the
Standing Committee of the National People's Congress issued Law of the People's Republic of China on the Prevention and Control
of Noise Pollution (the "Prevention and Control of Noise Pollution Law"), which became effective on June 5, 2022. According
to the Prevention and Control of Noise Pollution Law, entities subject to the pollutant discharge licensing management requirements shall
not emit industrial noise without a pollutant discharge permit and shall prevent and control noise pollution according to the requirements
of the pollutant discharge permit. The noise pollution has been included in the Pollution Discharge Permit, and we conduct quarterly test
on the noise through qualified testing institutions to comply with the laws, which is required by laws.

 Consolidation

 We conduct substantially
all of our business in China through contractual arrangements with Dongfang Paper, the VIE, due to PRC legal restrictions of foreign ownership
in certain sectors. Substantially most of IT Tech Packaging's revenues, costs and net income in China are directly or indirectly
generated through the VIE. IT Tech Packaging, through Baoding Shengde, has signed various agreements with the VIE and shareholders of
the VIE to allow the transfer of economic benefits from the VIE to Baoding Shengde and to direct the activities of the VIE.

 Total assets and liabilities
presented on IT Tech Packaging's consolidated balance sheets and revenue, expense, net income presented on consolidated statement
of operations and comprehensive income as well as the cash flow from operating, investing and financing activities presented on the consolidated
statement of cash flows are substantially the financial position, operation and cash flow of the VIE. As of December 31, 2023, our variable
interest entity accounted for an aggregate of 94.81% and 75.92% of our total assets and total liabilities. As of December 31, 2022, our
variable interest entity accounted for an aggregate of 88.54% and 72.59% of our total assets and total liabilities. As of December 31,
2023 and 2022, $3,705,111 and $7,612,294 of cash and cash equivalents were denominated in RMB, respectively.

 IT Tech Packaging and its
directly owned subsidiary, Shengde Holding, do not have any substantial assets or liabilities or result of operations. The following table
sets forth the assets, liabilities, results of operations and changes in cash, cash equivalents of the VIE, which were included in the
Company's consolidated balance sheets and statements of comprehensive income and statements of cash flows with intercompany transactions
eliminated:

 As of

 2023

 2022

 Current assets

 $
 26,317,876

 $
 33,832,930

 Total non-current assets

 $
 158,555,747

 $
 147,178,884

 Total Assets

 $
 184,873,623

 $
 181,011,814

 Total liabilities

 $
 20,084,995

 $
 16,784,877

 For the Fiscal Year Ended

 2023

 2022

 Net cash provided by operating activities

 $
 17,444,376

 $
 13,064,529

 Net cash used in investing activities

 $
 (22,239,297
)

 $
 (7,494,805
)

 Net cash provided by (used in) financing activities

 $
 3,965,631

 $
 (7,074,857
)

 Distributions and Other Transfers of Cash through our Organization

 We are a holding company,
although other means are available for us to obtain financing at the holding company level, we may receive dividends and other distributions
on equity paid by our subsidiary established in China for our cash needs, including the funds necessary to pay dividends and other cash
distributions to our shareholders to the extent we choose to do so, to service any debt we may incur and to pay our operating expenses.
Our PRC Subsidiaries, consolidated VIE and its subsidiary in China are subject to restrictions on making dividends and other payments
to us. Baoding Shengde's income in turn depends on the service and other fees paid by the consolidated VIE and its subsidiary. ITP,
its subsidiaries, the consolidated VIE and its subsidiary may also transfer cash to each other as part of the group cash management. If
any of our subsidiaries, the consolidated VIE and its subsidiary incurs debt on its own behalf in the future, the instruments governing
such debt may restrict their ability to pay dividends or make other payments to us. Current PRC regulations permit our PRC Subsidiaries
in China to pay dividends to us only out of their accumulated profits, if any, determined in accordance with Chinese accounting standards
and regulations. In addition, under the applicable requirements of PRC law, our PRC Subsidiaries, consolidated VIE and its subsidiary
incorporated as companies may only distribute dividends after they have made allowances to fund certain statutory reserves. These reserves
are not distributable as cash dividends.

 IT Tech Packaging conducts
its business operations in China through its PRC Subsidiaries and Dongfang Paper, the VIE. If needed, IT Tech Packaging can transfer cash
to the PRC Subsidiaries through loans and/or capital contributions, and the PRC Subsidiaries can transfer cash to IT Tech Packaging through
issuing dividends or other distributions. The PRC Subsidiaries can transfer cash to the VIE through intercompany loans and capital contributions,
and the VIE can transfer cash to the PRC Subsidiaries as services fees under the VIE contractual arrangements. For the year ended December
31, 2023, the major cash flows occurred between IT Tech Packaging, its subsidiaries and the VIE included (i) loans in the total amount
of $4,251,821 provided by Baoding Shengde to Tengsheng Paper; (ii) loans in the total amount of $2,834,547 from Baoding Shengde loans
to Dongfang Paper; (iii) the payment in the amount of $5,491,139 made from Dongfang Paper to Baoding Shengde for purchase of raw materials;
and (iv) funding through Shengde Holdings Inc. to Qianrong, with an amount of $500,000 as capital contributions. We do not have an established
cash management policy that dictates how funds are transferred between us, our subsidiaries, consolidated VIE and its subsidiary. We do
not, at this time, intend to distribute earnings or settle amounts owed under the VIE Agreements.

 Current PRC regulations
permit the PRC Subsidiaries to pay dividends to its shareholders only out of their accumulated profits, if any, determined in accordance
with PRC accounting standards and regulations. The PRC Subsidiaries are required to set aside 10% of its after-tax profits to fund a statutory
reserve until such reserve reaches 50% of its registered capital if it distributes its after-tax profits for the current financial year.
For details, see " Risk Factors — Risk Factors Relating to Doing Business in China — We may rely on dividends and
other distributions on equity paid by our PRC subsidiaries to fund any cash and financing requirements we may have, and any limitation
on the ability of our PRC Subsidiaries to make payments to us could have a material and adverse effect on our ability to conduct our business. "
In addition, cash transfers from IT Tech Packaging are subject to applicable PRC laws and regulations on loans and direct investment.
For details, see " Risk Factors — Risk Factors Relating to Doing Business in China — PRC regulation of loans to and
direct investment in PRC entities by offshore holding companies and governmental control of currency conversion may delay us from making
loans or additional capital contributions to our PRC Subsidiaries, which could materially and adversely affect our liquidity and our ability
to fund and expand our business."

 In addition, the PRC government
imposes controls on the convertibility of the Renminbi into foreign currencies and, in certain cases, the remittance of currency out of
China. IT Tech Packaging receives a significant portion of its revenues in Renminbi. Under IT Tech Packaging's current corporate
structure, IT Tech Packaging's Nevada holding company may rely on dividend payments from the PRC Subsidiaries to fund any cash and
financing requirements it may have. Under existing PRC foreign exchange regulations, payments of current account items, including profit
distributions, interest payments and trade and service-related foreign exchange transactions, can be made in foreign currencies without
prior approval of State Administration of Foreign Exchange, or SAFE, by complying with certain procedural requirements. However, approval
from or registration with appropriate government authorities is required where Renminbi is to be converted into foreign currency and remitted
out of China to pay capital expenses such as the repayment of loans denominated in foreign currencies. As a result, we need to obtain
SAFE approval to use cash generated from the operations of the PRC Subsidiaries and VIE to pay off their respective debt in a currency
other than Renminbi owed to entities outside China, or to make other capital expenditure payments outside China in a currency other than
Renminbi. If the foreign exchange control system prevents us from obtaining sufficient foreign currencies to satisfy our foreign currency
demands, we may not be able to pay dividends in foreign currencies to its shareholders. See " Risk Factors — Risk Factors
Relating to Doing Business in China — Governmental control of currency conversion may limit our ability to utilize our revenues
effectively and affect the value of your investment ". In order to secure the amounts owed under the VIE agreements, the VIE
and its shareholders entered into a share pledge agreement with Baoding Shengde, pursuant to which if the VIE fails to pay the service
fees to the Baoding Shengde pursuant to the exclusive technical service and business consulting agreement or fails to perform their other
obligations under the other management agreement, Baoding Shengde is entitled to dispose of the pledged equity interests in the VIE.

 IT Tech Packaging declared
and paid four quarterly cash dividends to its U.S. investors in April 2012 and November 2013. As of the date of this annual report, other
than those cash dividends, none of IT Tech Packaging's subsidiaries have ever issued any dividends or made other distributions to
IT Tech Packaging or their respective holding companies nor has IT Tech Packaging or any of IT Tech Packaging's subsidiaries ever
paid dividends or made other distributions to U.S. investors. IT Tech Packaging currently intend to retain all future earnings to finance
its operations and to expand its business. As a result, IT Tech Packaging does not expect to pay any cash dividends in the foreseeable
future.

 Holding Foreign Company Accountable Act ("HFCAA")

 Our common stock may be
delisted from the NYSE American under the Holding Foreign Companies Accountable Act ("HFCAA"), if the PCAOB is unable to adequately
inspect audit documentation located in China, or investigate our auditor. Furthermore, on June 22, 2021, the U.S. Senate passed the Accelerating
Holding Foreign Companies Accountable Act, which was signed into law on December 29, 2022, amends the HFCAA and requires the SEC to prohibit
an issuer's securities from trading on any U.S. stock exchanges if its auditor is not subject to PCAOB inspections for two consecutive
years instead of three. Our auditor, GGF CPA Limited, is a China-based accounting firm registered with the PCAOB, and is subject to laws
in the United States pursuant to which the PCAOB conducts regular inspections to assess its compliance with the applicable professional
standards. On August 26, 2022, the PCAOB signed the Protocol with the CSRC and the MOF of the People's Republic of China, governing
inspections and investigations of audit firms based in mainland China and Hong Kong. The Protocol remains unpublished and is subject to
further explanation and implementation. Pursuant to the fact sheet with respect to the Protocol disclosed by the SEC, the PCAOB shall
have independent discretion to select any issuer audits for inspection or investigation and the unfettered ability to transfer information
to the SEC. On December 15, 2022, the PCAOB announced that it was able to secure complete access to inspect and investigate PCAOB-registered
public accounting firms headquartered in China mainland and Hong Kong completely in 2022. The PCAOB Board vacated its previous 2021 determinations
that the PCAOB was unable to inspect or investigate completely registered public accounting firms headquartered in China mainland and
Hong Kong. However, whether the PCAOB will continue to be able to satisfactorily conduct inspections of PCAOB-registered public accounting
firms headquartered in China mainland and Hong Kong is subject to uncertainty and depends on a number of factors out of our, and our auditor's
control. The PCAOB is continuing to demand complete access in China mainland and Hong Kong moving forward and is already making plans
to resume regular inspections in early 2023 and beyond, as well as to continue pursuing ongoing investigations and initiate new investigations
as needed. The PCAOB has indicated that it will act immediately to consider the need to issue new determinations with the HFCAA if needed.
Therefore, the PCAOB in the future may determine that it is unable to inspect or investigate completely registered public accounting firms
in mainland China and Hong Kong. Our auditor's working papers related to us and the consolidated VIE and its subsidiary are located
in China. If our auditor is not permitted to provide requested audit work papers located in China to the PCAOB, investors would be deprived
of the benefits of PCAOB's oversight of our auditor through such inspections which could result in limitation or restriction to
our access to the U.S. capital markets and trading of our securities may be prohibited under the HFCAA, which would result in the delisting
of our securities from the NYSE American.

 See " Risk Factors—Risks
Associated with Our Company— Our common stock may be delisted from the NYSE American under the Holding Foreign Companies Accountable
Act if the PCAOB is unable to adequately inspect audit documentation located in China. The delisting of our common stock, or the threat
of their being delisted, may materially and adversely affect the value of your investment."

 Summary of Risk Factors

 Investing in our securities
involves significant risks and uncertainties. You should carefully consider all of the information in this annual report before making
an investment in our securities. Below please find a summary of the principal risks we face, organized under relevant headings. These
risks are discussed more fully in the section titled " Risk Factors."

 Risks Relating to our Business

 Our operating history may not serve as an adequate basis to judge our future prospects and results of operations.

 Dongfang Paper and Baoding Shengde's failure to compete effectively may adversely affect our ability to generate revenue.

 We may not be able to effectively control and manage our growth.

 We, through our subsidiaries, may engage in future acquisitions that could dilute the ownership interests of our stockholders and
cause us to incur debt and assume contingent liabilities.

 We are responsible for the indemnification of our officers and directors.

 We are dependent on certain key personnel and loss of these key personnel could have a material adverse effect on our business,
financial condition and results of operations.

 We may not be able to hire and retain qualified personnel to support our growth and if we are unable to retain or hire these personnel
in the future, our ability to improve our products and implement our business objectives could be adversely affected.

 Our operating results may fluctuate as a result of factors beyond our control.

 We face risks related to product liability claims.

 Our operating results also depend on the availability and pricing of energy and raw materials.

 A material disruption at one of our manufacturing facilities could prevent us from meeting customer demand, reduce our sales, and/or
negatively affect our net income.

 Our certificates, permits, and licenses related to our papermaking operations are subject to governmental control and renewal and
failure to obtain renewal will cause all or part of our operations to be terminated.

 Compliance with environmental regulations is expensive, and noncompliance may result in adverse publicity and potentially significant
monetary damages and fines or suspension of our business operations.

 If we are unable to respond to pricing pressures, our business may be harmed.

 If we fail to introduce enhancements to our existing products or to develop new products, our business and results of operations
could be adversely affected.

 We have limited insurance coverage and may incur losses resulting from product liability claims or business interruptions.

 Our failure to protect our intellectual property rights may undermine our competitive position, and external infringements of our
intellectual property rights may adversely affect our business.

 We may be subject to intellectual property infringement claims or other allegations, which may materially and adversely affect
our business, financial condition and prospects.

 Risks Related To Doing Business in the PRC

 The PRC government has significant oversight and discretion over the conduct of a PRC company's
business operations or to exert control over any offering of securities conducted overseas and/or foreign investment in China-based issuers,
and may intervene with or influence our operations, may limit or completely hinder our ability to offer or continue to offer securities
to investors, and may cause the value of such securities to significantly decline or be worthless, as the government deems appropriate
to further regulatory, political and societal goals.

 The CSRC has released the Trial Measures for Administration of Overseas Securities Offerings and Listings
by Domestic Companies (the "Trial Measures"). While such rules have become into effect, the Chinese government may exert more
oversight and control over offerings that are conducted overseas and foreign investment in China-based issuers, which could significantly
limit or completely hinder our ability to continue to offer our securities to investors and could cause the value of our securities to
significantly decline or become worthless.

 Recent greater oversight by the Cyberspace Administration of China, or the "CAC," over data security, particularly
for companies seeking to list on a foreign exchange, could adversely impact the business of us, the consolidated VIE and its subsidiary
and investing in our securities.

 The occurrence of security breaches and cyber-attacks could negatively impact our business.

 Our business may be subject to a variety of PRC laws and other obligations regarding cybersecurity and data protection.

 Changes in the policies of the PRC government could have a significant impact upon the business we may be able to conduct in the
PRC and the profitability of such business.

 The PRC laws and regulations governing our current business operations are sometimes vague and uncertain. Any changes in such PRC
laws and regulations may harm our business.

 A slowdown, inflation or other adverse developments in the PRC economy may harm our customers and the demand for our services and
products.

 Our PRC Subsidiaries, consolidated VIE and its subsidiary in China are subject to restrictions on making dividends and other payments
to us or any other affiliated company.

 We may rely on dividends and other distributions on equity paid by our PRC subsidiaries to fund any
cash and financing requirements we may have, and any limitation on the ability of our PRC Subsidiaries to make payments to us could have
a material and adverse effect on our ability to conduct our business.

 Governmental control of currency conversion may limit our ability to utilize our revenues effectively and affect the value of investors'
investment.

 PRC regulation of loans to and direct investment in PRC entities by offshore holding companies and
governmental control of currency conversion may delay us from making loans or additional capital contributions to our PRC Subsidiaries,
which could materially and adversely affect our liquidity and our ability to fund and expand our business.

 The fluctuation of the Renminbi may harm your investment.

 Failure to comply with PRC regulations relating to the establishment of offshore special purpose companies by PRC residents may
materially adversely affect us.

 While the approval and/or other requirements of the CSRC or other PRC governmental authorities are
currently not required, they may be required, in connection with our oversea listing under PRC rules, regulations or policies, and, if
required, we cannot predict whether or how soon we will be able to obtain such approval.

 The M&A Rules and certain other PRC regulations establish complex procedures for some acquisitions of Chinese companies by
foreign investors, which could make it more difficult for us to pursue growth through acquisitions in China.

 The PRC's legal and judicial system may not adequately protect our business and operations and the rights of foreign investors.

 Because our principal assets are located outside of the United States and most of our directors and
officers reside outside of the United States, it may be difficult for you to effect service of legal process, enforce your rights based
on U.S. federal securities laws against us and our officers or to enforce U.S. court judgment against us or them in the PRC.

 It may be difficult for overseas regulators to conduct investigation or collect evidence within China.

 We may be required to broaden the coverage of the mandatory social security insurance programs under the Labor Law of the PRC.

 The current tensions in international trade and rising political tensions, particularly between U.S. and China, may adversely impact
our business, financial condition, and results of operations.

 Risks Related to Our Corporate Structure

 Our current corporate structure and business operations may be affected by the newly enacted Foreign Investment Law.

 Any failure by our consolidated VIE or their shareholders to perform their obligations under our contractual arrangements with
them would have a material adverse effect on our business.

 In order to comply with PRC regulatory requirements, we operate our businesses through companies with which we have contractual
relationships but in which we do not have controlling ownership.

 Because we rely on the consulting services agreement with Dongfang Paper for essentially all of our
revenue and cash flows, any difficulty for Dongfang Paper to pay consulting fees to Baoding Shengde under the consulting agreement may
have a material adverse effect on our operations.

 If the PRC government determines that the contractual agreements constituting part of our VIE structure
do not comply with applicable PRC regulations, or if these regulations change or are interpreted differently in the future, we may be
unable to assert our contractual rights over the assets of the VIE, and our common stock may decline in value.

 The contractual arrangements under a VIE Structure may not be as effective as direct ownership in respect of our relationship with
the VIE, and thus, we may incur substantial costs to enforce the terms of the arrangements, which we may not be able to enforce at all.

 The shareholders of Dongfang Paper may have actual or potential conflicts of interests with us, which may adversely affect our
business.

 We may lose the ability to use and enjoy assets held by the VIE that are material to the operation of our business if the entity
goes bankrupt or becomes subject to a dissolution or liquidation proceeding.

 Our arrangements with Dongfang Paper and its shareholders may be subject to a transfer pricing adjustment by the PRC tax authorities
which could have an adverse effect on our income and expenses.

 We may lose the ability to use, or otherwise benefit from, the licenses, approvals and assets held by the VIE, which could severely
disrupt our business, render us unable to conduct some of our business operations and constrain our growth.

 The exercise of our option to purchase part or all of the equity interests in Dongfang Paper under
the Call Option Agreement might be subject to approval by the PRC government. Our failure to obtain this approval may impair our ability
to substantially control Dongfang Paper and could result in actions by Dongfang Paper that conflict with our interests.

 Risks Related to Our Common Stock

 Our common stock may be delisted from the NYSE American under the Holding Foreign Companies Accountable
Act if the PCAOB is unable to adequately inspect audit documentation located in China. The delisting of our common stock, or the threat
of their being delisted, may materially and adversely affect the value of your investment..

 If we fail to comply with Section 404 of the Sarbanes-Oxley Act of 2002 in a timely manner, our business could be harmed and our
stock price could decline.

 If we become directly subject to the scrutiny involving U.S. listed Chinese companies, we may have to expend significant resources
to investigate and/or defend the matter, which could harm our business operations, stock price and reputation.

 Our officers and directors control us through their positions and stock ownership and their interests may differ from other stockholders.

 We may not continue to pay cash dividends and any return on investment may be limited to the value of our common stock.

 Our common stock may be affected by limited trading volume and may fluctuate significantly.

 Future financings may dilute stockholders or impair our financial condition.

 Our Business

 We, through our PRC Subsidiaries
and VIE, engage in production and distribution of three categories of paper products: corrugating medium paper, offset printing paper,
tissue paper products and medical face masks in China.

 Our principal executive offices are located at Science
Park, Juli Road, Xushui District, Baoding City, Hebei Province, People's Republic of China.

 Our telephone number is (86) 312-869-8215. Our website is
located at

 Manufacturing Process

 Corrugating Medium Paper and Offset Printing Paper

 Our current products (excluding
tissue paper products) generally undergo two stages of manufacturing: (1) creating pulp from recycled paper products, and (2) treating
the pulp and molding it into the desired types of paper products. A brief overview of the pulp and papermaking process is provided below.

 Pulping

 The recycled waste paper
is first sorted by machine, and then broken down and beaten or smashed into small pieces using water and mechanical energy. It is then
put through a course screening drum, followed by a fine screening drum to separate different grades of pulp, a process that we refer as
"concentration". In order to purify the pulp further, an approach flow system is used to filter out any impurities or inconsistencies,
such as sand, in the pulp.

 Paper Making

 The pulp is sieved to remove
the excess water and molded into a specific size. The moisture content is further reduced by applying hydraulic pressure to the pulp.
The pulp then enters the drying section where it is rolled over by heated cylinders. The dried paper is then coated with a mixture of
clay, white pigment and binder to produce a surface on which ink can sit without being fully absorbed, enabling crisper, and more consistent
print quality.

 The paper goes through a
process called calendaring, which flattens and smoothens the paper into long sheets. The paper is then wound onto a reel that is mounted
in a roll-slitting machine for rewinding, during which cutters are used to cut the paper into the desired widths. Upon completion, the
rolls are fitted with sleeves and labeled, and then sent to quality control before shipment or storage.

 Base Tissue Paper

 While we make tissue paper products, we currently
purchase paper pulp from suppliers and use it to manufacture base tissue paper directly.

 Products

 Corrugating medium paper

 Corrugating medium paper,
or CMP is used in the manufacturing of cardboard. Since the launch of our new Paper Machine ("PM6") production line in December
2011, corrugating medium paper has become a major product of the Company. For the year ended December 31, 2023, corrugating medium paper
comprised approximately 97.06% of our total paper production quantities and roughly 94.47% of our total revenue. Raw materials used in
the production of corrugating medium paper include recycled paper board (or Old Corrugating Cardboard or "OCC," as it is commonly
referred to in the United States) and certain supplementary agents. In January 2013, we suspended the operation of our PM1 production
line for renovation, which was then used to produce corrugating medium paper. In May 2014, we launched the commercial production of a
renovated PM1 production line. The renovated PM1 production line produces light-weight corrugating medium paper with a specification of
40 to 80 grams per square meter ("g/s/m"). PM1's light-weight corrugating medium paper products have a wide range of
commercial applications. For example, they can be used as a construction material for wall and floor insulation or to manufacture moisture-proof
packaging materials for the transportation of books and magazines by the publishing industry. It can also be used as corrugating medium
to make corrugating cardboard for packaging that requires light-weight boxes. The manufacturing process of light-weight corrugating medium
paper is similar to that of the regular corrugating medium paper and also uses recycled paper boards as a major source of raw material.
We now have two corrugating medium paper production lines, PM6 and PM1. We refer to products produced from the PM6 production line as
Regular CMP and products produced from the PM1 production line as Light-Weight CMP.

 Offset printing paper

 Offset printing paper is used for offset printing
in the publishing industry. Revenue from offset printing paper was $3,215,190 with 5,573 tonnes sold for the year ended December 31, 2023.
Raw materials used in making offset printing paper include recycled white scrap paper, fluorescent whitening agent and sizing agent. We
currently have two production lines, PM2 and PM3, for the production of offset printing paper.

 Tissue Paper Products

 We began the commercial
production of tissue paper products in Wei County Industry Park in June 2015. We process base tissue paper purchased from long-term cooperative
third party and produce finished tissue paper products, including toilet paper, boxed and soft-packed tissues, handkerchief tissues and
paper napkins, as well as bathroom and kitchen paper towels that are marketed and sold under the Dongfang Paper brand. In December 2018
and November 2019, we completed the construction, installation and test of operation of PM8 and PM9, respectively, and commercially launched
tissue paper production of PM8 and PM9 at such time. On May 5, 2020, the Company announced it planned the commercial launch of a new tissue
paper production line PM10 and the Company entered into an agreement to purchase paper machine with paper machine supplier. The Company
expected the new tissue paper production line to be launched after the completion of trial run. The machine supplier was delayed because
of pandemic. We are closely following up the provider for further actions. Tissue paper products comprised approximately 0.52% of our
total paper production quantities and approximately 1.51% of our total sales revenue for the year ended December 31, 2023.

 Face Masks

 On April 29, 2020, we launched
a production line of non-medical single-use face masks, following the completion of raw materials preparation, trial run of the equipment
and the sample products inspection. In May 2021, the Company obtained the license for its new single-use surgical masks from local food
and drug administration in Hebei province, and began commercial production in November 2021.

 Market for our Products

 The PRC Paper Making Industry

 According to the 2022 China
Paper Industry Annual Report, issued by the China Paper Association, there were approximately 2,500 paper and paper board manufacturers
in China, with a total output of 124.25 million tonnes, up by 2.64% from 121.05 million tonnes in 2021. Total domestic consumption was
124.03 million tonnes in 2022, down by 1.94% from 126.48 million tonnes in 2021.

 The output of paper and
paper board maintained an average growth rate of approximately 2.32% during the ten-year period from 2013 to 2022, while consumption increased
at an average annual rate of 2.67%. The growth is expected to continue. It is estimated that China currently has the largest paper and
paper board products output and consumption in the world. (Data source: 2022 Annual Report of China Paper Manufacturing, May 2023,China
Paper Association)

 Unit: Million tons

 Data source: 2022Annual Report of China's
Paper Industry, May 2023, China Paper Association

 Corrugating medium paper production in China
totaled 27.70 million tonnes in 2022, a 3.17% increase from 2021. Consumption of corrugating medium paper in China amounted to 30.10 million
tonnes in 2022, an increase of 1.11% as compared to 2021.

 Uncoated offset printing
paper production in China totaled 17.35 million tonnes in 2022, a 0.87% increase from 2021. Consumption of uncoated offset printing paper
in China amounted to 16.78 million tonnes in 2022, a decrease of 6.41% as compared to 2021.

 The paper making industry
in China is concentrated in the east coast provinces. The largest paper production capacities by province for 2022 and 2021 (the most
recent year for which relevant information is available) are summarized in the table below. The three provinces with largest capacities
showed moderate decreases in paper production capacities.

 2022 Capacity

 2021 Capacity

 %

 Province

 (10k tonnes)

 (10k tonnes)

 Change

 Shandong

 2,015

 2,035

 (0.98
)

 Guangdong

 1,969

 1,970

 (0.05
)

 Jiangsu

 1,373

 1,415

 (2.97
)

 Zhejiang

 1,193

 1,050

 13.62

 Fujian

 (2.84
)

 Henan

 6.40

 Hubei

 3.86

 Guangxi

 65.88

 Chongqing

 (3.55
)

 Hebei

 (7.35
)

 Data Sources: 2022 Annual Report of China's
Paper Industry, May 2023, China Paper Association

 Customers

 We generally sell our corrugating
medium paper to companies making corrugating cardboards and offset printing paper to printing companies. Our largest customer is a packaging
company in Hebei Province. Our total corrugating medium and offset printing paper revenue in 2023 was primarily derived from customers
in Hebei Province and Shandong Province.

 For the year ended December 31, 2023, five major
customers who individually accounted for more than 5% of our total sales revenue are as follows:

 2023

 Sales

 (USD$, net of

 % of

 applicable

 Total

 VAT)

 Revenue

 Company A (Hebei)

 6,387,786

 7.38
 %

 Company B (Shandong)

 6,167,272

 7.13
 %

 Company C (Hebei)

 6,097,717

 7.05
 %

 Company D (Shandong)

 6,085,824

 7.03
 %

 Company E (Tianjin)

 6,006,103

 6.94
 %

 Total Major Customers

 30,744,703

 35.53
 %

 Eight of our top-ten customers of 2023 are also
in the top-ten customer list in 2022, representing 85.66% of the 2022 top-ten customer sales.

 Target Market

 We target corporate customers
in the middle range of the marketplace, where, with solid quality and competitive pricing, we see potential for high volume growth for
corrugating medium paper and offset printing paper. Our primary market has been the region of North China, especially in the province
of Hebei.

 Our Production Lines

 During the year ended December
31, 2023, we had six PM production lines in operation and are in the process of launching one more that is designated as PM7. These production
lines include the followings:

 Paper Product

 Designed Capacity

 PM#

 Produced

 (tonnes/year)

 Owned by

 Operated by

 Status as of December 31, 2023

 PM1

 Corrugating Medium Paper

 60,000

 PM2

 Offset Printing Paper

 50,000

 PM3

 Offset Printing Paper

 40,000

 PM4

 Digital Photo Paper

 **

 Suspended in June 2016 due to low market demand

 PM5

 Digital Photo Paper

 **

 Suspended in June 2016 due to low market demand

 PM6

 Corrugating Medium Paper

 360,000

 Dongfang Paper***

 PM7*

 Specialty paper

 10,000

 In renovation

 PM8

 Tissue paper

 15,000

 PM9

 Tissue paper

 15,000

 In production.

 PM10

 Tissue paper

 In construction

 *:
 Paper machines under renovation,
under construction, or in the planning stage.

 ***:
 PM6 is funded and owned by Baoding Shengde; ancillary facilities
that support the PM6 operation are built and owned by Dongfang Paper.

 On December 31, 2009, we
acquired a digital photo paper production line, including two coating lines that are designated as PM4 and PM5 and ancillary equipment,
for a total purchase price of approximately $13.6 million. We suspended production of photo paper in June 2016.

 In order to meet the growing
domestic demand for paper, which we believe currently exceeds domestic supply in the case of corrugating medium paper, especially in the
region of North China, we installed a corrugating medium paper production line (PM6) with a designed capacity of 360,000 tonnes per year.
We completed the installation of the PM6 production line in November 2011 and began commercial production in December 2011.

 We have implemented a plan
to renovate one of the old production lines that has been idle since the end of 2007. We previously made paper with anti-counterfeit features
from that production line. When the renovation is completed, we intend to use the renovated production line to produce high-profit margin
specialty papers.

 On November 27, 2012, we
signed a 15-year lease relating to approximately 49.4 acres of land in the Economic Development Zone in Wei County, Hebei Province, China
for the purpose of developing a new tissue paper production plant. We planned to build two tissue paper production lines, each with 15,000
tonnes/year capacity, and other packaging facilities and infrastructures on the leased land. In December 2012, we signed a contract with
an equipment contractor in Shanghai to build PM8, the first of our two tissue paper production lines in Wei County. In December 2018 and
November 2019, we completed the construction, installation and test of operation of PM8 and PM9, respectively and commercially launched
tissue paper productions of PM8 and PM9 at such time. On May 5, 2020, the Company announced it planned the commercial launch of a new
tissue paper production line PM10 and the Company signed an agreement to purchase paper machine with paper machine supplier. The Company
expected the new tissue paper production line to be launched after the completion of trial run.

 We voluntarily renovated
our 150,000 tonnes/year corrugating medium paper PM1 in anticipation of increased regulatory concerns on energy efficiencies as well as
to improve the quality of our corrugating medium products. Rather than converting PM1 to a regular corrugating medium paper machine, we
decided in 2013 that, based on the market conditions and our waste water treatment capability, the better option was to convert PM1 to
produce Light-Weight CMP with a specification of 40 to 80 grams per square meter ("g/s/m") with a designed capacity of 60,000
tonnes/year. We started the renovation in January 2013 and launched commercial production of the renovated PM1 production line in May
2014.

 Raw Materials and Principal Suppliers

 The supplies used in our
production processes are comprised mainly of recycled paper board and unprinted recycled white scrap paper, both of which are ready-to-use
items and available from multiple domestic and foreign sources. We currently purchase all of our recycled paper supplies from some domestic
recycling stations and do not rely on imported recycled paper. We also purchase gas and chemical agents from nearby suppliers. Ongoing
inflationary pressures and higher demand for recycled paper could lead to an increase in our costs of raw materials and production, which
we may or may not be able to pass to our customers.

 We sign annual raw materials
supplier contracts with our suppliers. Although we have contracts with our suppliers, these contracts do not lock-in the purchase price
of our raw materials or provide hedge against the fluctuation in the market price of these raw materials. For the year ended December
31, 2023, we had two large suppliers which accounted for approximately 72% and 17% of our total purchases, respectively.

 For the year ended December 31, 2023, three major
suppliers who individually accounted for more than 5% of our total purchase are as follows:

 2023

 Purchase

 % of

 Total

 (USD$)

 Purchase

 Company A (Hebei)

 56,159,754

 %

 Company B (Hebei)

 13,631,622

 %

 Company C (Hebei)

 5,034,368

 %

 Total Major Suppliers

 64,825,744

 %

 Competition

 Dongfang Paper's main
competitors are: Chenming Paper Group Limited, Huatai Group Limited, Nine Dragons Paper (Holdings) Limited and Sun Paper Group Limited.
A number of our competitors are public entities with larger capacities, broader customer bases and greater financial resources than those
available to us. The businesses of our primary competitors are briefly described below:

 Chenming Paper Group, Ltd.
("Chenming"), based in Shandong Province (located in northeast China), produces primarily news print paper and art paper (high
quality, heavy and two-side coated printing paper). Chenming is believed to be the first company to have listed on all three stock exchanges
in China: Renminbi A-shares and foreign currency B-shares in Shenzhen, the smaller of the mainland's two stock exchanges, and H-shares
in Hong Kong. Chenming has annual production capacity of 8.5 million tonnes for its coated wood-free paper product and is believed to
rank among the top 500 enterprises in China.

 Huatai Group, Ltd. ("Huatai"),
based in Shandong Province (located in the northern part of the eastern coastal region of China), primarily produces newsprint, fine paper,
special printing paper, coated board and tissue paper. Huatai is the first Shandong papermaker to publicly list its stock and has become
a famous brand in China. Its annual paper production is estimated to have reached 4 million tonnes.

 Nine Dragons Paper (Holdings)
Limited ("ND Paper"), based in Guangdong Province (located in southern China), is the largest paper manufacturer in China
and primarily produces craft paper and high-strength corrugating medium paper with annual capacity of 13 million tonnes. ND Paper has
reported that it has five production lines in the city of Tianjin with a total designed capacity of 2.15 million tonnes, producing products
such as craft paper, high strength corrugating medium paper and grey-back duplex board.

 Sun Paper Group, Ltd., based
in Shandong Province, primarily produces card paper, whiteboard paper and art paper. It also produces alkaline peroxide mechanical pulp,
sourced in part from wood chips harvested by the company's poplar plantations. This company has reported that it has an aggregate
annual production capacity of paper and pulp of approximately 5.7 million tonnes and has been listed on the Shenzhen Stock Exchange since
2006.

 With the exceptions of Chenming
and ND Paper, which may compete directly with us in the offset printing paper market and the corrugating medium paper market, respectively,
in the Beijing/Tianjin/greater Hebei regions, we believe that we face only indirect competition from the above-listed companies, either
because we have a different product assortment from these companies, or because, to the extent they do offer products similar to ours,
the transportation costs and storage costs make it difficult for these companies to compete effectively with us on pricing.

 Our Competitive Edge

 Regional advantage (Northern
China). We believe that Dongfang Paper is one of the leading papermaking enterprises in Hebei Province. Our proximity to large urban
centers in northern China, Beijing and Tianjin, gives us access to a large market to sell our products.

 There are other paper manufacturers
that are also located in Hebei Province (and close to metropolitan Beijing and Tianjin areas), but most of these other manufacturers are
small in scale and unable to compete with us effectively. We also compete with other large printing paper manufacturers for Beijing printing
company customers. We believe that we have cost and geographical advantages over these larger competitors.

 Cost advantage. Unlike
some of our out-of-province competitors who must set up interim warehouses and ship products from their production base to such interim
warehouses close to their customer base in Beijing, there is no need for us to set up interim warehouses, because we are approximately
60 miles (100 kilometers) from Beijing, the cultural center of China and our largest target market. While we do not separately pay for
transportation cost on raw material purchases, the transportation cost included in the raw material purchase prices from our recycled
paper suppliers is lower than the transportation cost paid by our competitors in the province of Shandong. Similarly, our customers pay
lower transportation cost to pick up their orders from our finished goods warehouse in Baoding than what they would pay if they had to
pick up goods from locations further away from Beijing. Tianjin, another large urban center, is also approximately 60 miles from our facilities.
Baoding city itself is also home to numerous printing and packaging companies. Our geographical advantage and easy access to low-cost
raw materials allow us to implement a more flexible inventory purchase policy, lower our purchase prices and inventory management expenses
and reduce our production cost. As such, we have lower freight costs and other associated costs of sales, which enable us to charge lower
prices, if necessary, for our products. Additionally, because we buy all recycled paper raw materials from Beijing and Tianjin, rather
than from the United States or Japan, our purchase lead time is shorter as compared to manufacturers who rely on imported recycled paper.

 Research and Development

 Our R&D activities are
carried out by a task force led by a group of senior managers (in charge of product development and quality control) and by a group of
selected engineers and technicians. The Company charged the time spent on the R&D projects (manufacturing waste discharge recycling,
digital photo paper and tissue paper manufacturing) to R&D expenses. Our R&D efforts in 2023 were focused on evaluating and developing
new products that are in the pipeline for 2023 and included developing and improving the manufacturing process of Light-Weight CMP and
the production and packaging technology of tissue paper.

 One of our production lines,
PM7, is under renovation. Since the fourth quarter of 2010, we have spent approximately $1.57 million in machine parts and new components
to renovate this production line, with which we expect to produce certain specialty papers, including wood-grain deco and furniture paper,
wallpaper and paper with security features (for anti-counterfeiting purposes). While we are optimistic about the prospect of the specialty
papers, we cannot guarantee the launch of the specialty paper production or the success of such renovation.

 Intellectual Property

 The Company has registered eight trademarks with the Trademark
Bureau under the State of Administration for Industry & Commerce.

 Trademark

 Certificate No.

 Category

 Registrant

 Valid Term

 Shuangxing

 3298963

 Fax paper, thermal paper, blueprint paper, sensitized paper, spectrum sensitized paper, blueprint cloth, photographic paper, cyanotype solution, diazo paper

 April 7, 2014 through April 6, 2024

 Fangmenglai

 12955328

 Toilet paper, handkerchief tissues, tissues, paper napkins, paper mats, beer mats, paper place mats, printing paper (including offset paper, newsprint, books paper, bond paper, plate paper and halftone paper), coated paper

 December 28, 2014 through December 27, 2024

 Fangqingxin

 12955235

 Toilet paper, handkerchief tissues, tissues for makeup remover, paper napkin, tissues, paper duster cloth, paper face towels, paper table cloth, paper tablecloths, drawer liner (with or without flavor)

 December 28, 2014 through December 27, 2024

 Kaimeilai

 20212149

 Xuan Paper (for traditional Chinese painting and calligraphy), Paper, tissue paper, watercolor paper, writing paper, printing publications, ink, painting brush, packaging plastic film, color box, photographic plate, heliographic paper

 July 28, 2017 through July 27, 2027

 Lanmeier

 15635879

 Paper table cover, paper pinafore, drawer lining (with flavor or not)

 November 21, 2016 through November 20, 2026

 Qingmu

 15635916

 Tissue paper, paper handkerchief, paper napkin, facial paper, grained paper, cardboard, white board, container board, kraft liner, corrugated medium paper (board)

 January 7, 2016 through January 6, 2026

 Rongou

 20063034

 Paper, tissue paper, paper handkerchief, paper napkin, facial paper, paper billboard, cleansing tissue, packaging paper or plastic bag (envelop, sachet), carton, paper box

 July 14, 2017 through July 13, 2027

 Weizun

 15636093

 Coasters, paper table cover, paper costers, cleansing paper

 February 28, 2016 through February 27, 2026

 The Company has
also been granted twelve new utility patent certificates on paper manufacturing related equipment issued by the State Intellectual Property
Office, including equipment testing, screening and filtering, and mixing.

 Certificate No.

 Description

 Registrant

 Valid Term

 13762076

 The utility model relates to a pulp mixing device

 July 23, 2021 through July 23, 2031

 13751681

 The invention relates to a product processing and cutting device

 July 23, 2021 through July 23, 2031

 14357355

 The utility model relates to a packaging equipment for pulp waste

 October 8, 2021 through October 8, 2031

 14248265

 The utility model relates to a pulp crushing device

 14254625

 The utility model relates to a pulp screening and separation device

 14260129

 The utility model relates to a pulp raw material processing device

 14258926

 The utility model relates to a forming tool for paper pulp products

 14250092

 The utility model relates to a material mixing device for paper processing

 13477825

 The invention relates to a pulp concentration detecting device

 June 22, 2021 through June 22, 2031

 14051723

 The utility model relates to a recycling device for edge material used in paper processing

 August 27, 2021 through August 27, 2031

 13893004

 The utility model relates to a pulp filter dehydration device

 August 6, 2020 through August 6, 2031

 13874156

 The utility model relates to a storage rack for raw material used in paper processing

 August 6, 2020 through August 6, 2031

 Domain names

 IT Tech Packaging has registered the internet domain name,

 Government Regulation

 The testing, approval, manufacturing,
labeling, advertising and marketing, post-approval safety reporting and export of our products are extensively regulated by governmental
authorities in the PRC. We are also subject to various other regulations and permit requirements by the Chinese government. These regulations
and their impact on our business are set forth in more details below.

 Environmental Regulation

 Our operations and facilities are subject
to environmental laws and regulations stipulated by the national and the local environment protection bureaus in the PRC.

 Since the implementation
of the State Council's "Decisions on Environmental Protection Issues" in 1996, the PRC paper industry has been subject
to more rigorous environmental standards. Effective January 1, 2015, a new law promulgated by the National People's Congress of
the People's Republic of China makes certain violations of the environmental laws a criminal offense. We believe that we are one
of the few major paper manufacturers in Hebei Province that have obtained a Pollution Discharge Permit. We initially received the permit
in September 1996 and, we have successfully renewed the permit each year by complying with applicable environmental requirements.

 On December 24, 2021, the
Standing Committee of the National People's Congress issued Law of the People's Republic of China on the Prevention and Control
of Noise Pollution (the "Prevention and Control of Noise Pollution Law"), which became effective on June 5, 2022. According
to the Prevention and Control of Noise Pollution Law, entities subject to the pollutant discharge licensing management requirements shall
not emit industrial noise without a pollutant discharge permit and shall prevent and control noise pollution according to the requirements
of the pollutant discharge permit. The noise pollution has been included in the Pollution Discharge Permit, and we conduct quarterly test
on the noise through qualified testing institutions to comply with the laws, which is required by laws.

 Waste Water Treatment

 Dongfang Paper uses a multi-level
water recycling process. Waste water from the pulping process is fed into collection pools, where it is divided into two parts, water
and recovered pulp fiber. The latter is returned to the pulping process.

 Chemical agents are added
to the waste water, and the waste water is fed into a biogas reactor and filtering pools, producing purified water and depositing sludge.
Most of the purified water is recycled to produce corrugating medium paper and the sludge is pumped into a sludge pool, condensed and
dehydrated. We then use the sludge as a raw material in the manufacture of corrugating medium paper.

 We maintain computerized
controls at our production facilities on a 24-hour basis to monitor compliance with environmental rules and regulations. We are not aware
of any environmental investigations, prosecutions, disputes, claims or other environmental proceedings, nor have we been subject to any
action by any environmental administration authorities of the PRC. To our knowledge, our operations meet or exceed the existing environmental
requirements of the PRC.

 Human Capital Resources

 Employee Profiles

we have approximately 383 full time employees, all of whom were based in PRC. As of December 31, 2023, approximately 24.3% of our current
workforce is female and 75.7% male. These employees are organized into a labor union under the labor laws of the PRC and have collective
bargain power against us. We generally maintain good relations with our employees and the labor union.

 Total Rewards

 Our compensation program
is designed to attract and reward talented individuals who possess the skills necessary to support our business objectives, assist in
the achievement of our strategic goals and create long-term value for our stockholders. We provide employees with compensation packages
that include base salary and annual incentive bonuses. We also provide private insurance coverage for any workplace accident or injury
for all the operators of paper milling machinery in the workshops.

 Health and Safety

 The success of our business
is fundamentally connected to the well-being of our people. Accordingly, we are committed to the health, safety and wellness of our employees.
We provide our employees and their families with access to a variety of flexible and convenient health and welfare programs, including
benefits that support their physical and mental health by providing tools and resources to help them improve or maintain their health
status; and that offer choice where possible so they can customize their benefits to meet their needs and the needs of their families.
In response to the COVID-19 pandemic, we implemented significant operating environment changes that we determined were in the best interest
of our employees, as well as the communities in which we operate, and which comply with government regulations.

 Talent

 A core tenet of our talent
system is to both develop talent from within and supplement with external hires. This approach has yielded loyalty and commitment in our
employee base which in turn grows our business, our products, and our customers, while adding new employees and external ideas supports
a continuous improvement mindset and our goals of a diverse and inclusive workforce. Our human resources team uses internal and external
resources to recruit highly skilled and talented workers in the PRC, and we encourage employee referrals for open positions.

 Available Information

 We are required to file
annual, quarterly and current reports, proxy statements and other information with the U.S. Securities and Exchange Commission ("SEC").
The public may read and copy any materials that we file with the SEC. In addition, the SEC maintains an Internet site that contains reports,
proxy and information statements, and other information regarding issuers like our Company that file electronically with the SEC at

 Our Annual Reports on Form
10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, proxy statements and amendments to those reports (including exhibits)
filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended, are also available free of charge
on our Internet site at  as soon as reasonably practicable after such reports are electronically filed with
or furnished to the SEC. The information on our website is not, and shall not be deemed to be, a part hereof or incorporated into this
or any of our other filings with the SEC.

 Executive Officers

 For information regarding
our executive officers as of March 27, 2024, see Part III, Item 10, "Directors, Executive Officers and Corporate Governance."

 Item 1A. Risk Factors

 Risks Relating to our Business

 Our operating history may not serve as an adequate basis to judge
our future prospects and results of operations.

 Dongfang Paper commenced
its current line of business operations in 1996 and received its initial Pollution Discharge Permit in September 1996, which must be renewed
every year for Dongfang Paper to stay in business. Although we have never had problem renewing the Pollution Discharge Permit, we cannot
guarantee automatic renewal every year. In addition, Baoding Shengde commenced its current line of business operations in 2009. Therefore,
our operating history may not provide a more meaningful basis on which to evaluate its business. We cannot assure you that Dongfang Paper
or Baoding Shengde will not incur net losses in the future. We expect that operating expenses of Dongfang Paper and Baoding Shengde will
increase as they expand. Any significant failure to realize anticipated revenue growth could result in significant operating losses. We
will continue to encounter risks and difficulties frequently experienced by companies at a similar stage of development, including our
potential failure to:

 raise adequate capital for expansion and operations;

 implement our business model and strategy and adapt and modify them as needed;

 increase awareness of our brand name, protect our reputation and develop customer loyalty;

 manage our expanding operations and service offerings, including the integration of any future acquisitions;

 maintain adequate control of our expenses; or

 anticipate and adapt to changing conditions in paper markets in which we operate as well as the impact
of any changes in government regulations, mergers and acquisitions involving our competitors, technological developments and other significant
competitive and market dynamics.

 If we are not successful in addressing any or all of these
risks, our business may be materially and adversely affected.

 Dongfang Paper and Baoding Shengde's failure to compete
effectively may adversely affect our ability to generate revenue.

 Through Dongfang Paper and
Baoding Shengde, we compete in a highly developed market with companies that have significantly greater experience and history in our
industry. If we do not compete effectively, we could lose market share and experience reduced selling prices, adversely affecting our
financial results. Our competitors will expand in the key markets and implement new technologies making them more competitive. There is
also the possibility that competitors will be able to offer additional products, services, lower prices, or other incentives that we cannot
or will not offer or that will make our products less profitable. We cannot assure you that we will be able to compete effectively with
current or future competitors or that the competitive pressures we face will not harm our business.

 We may not be able to effectively control and manage our growth.

 If our business and markets
grow and develop, it will be necessary for us to finance and manage expansion in an orderly fashion. An expansion would increase demands
on existing management, workforce and facilities. Failure to satisfy such increased demands could interrupt or adversely affect our operations
and cause delay in production and delivery of our paper products, as well as administrative inefficiencies.

 We, through our subsidiaries, may engage
in future acquisitions that could dilute the ownership interests of our stockholders and cause us to incur debt and assume contingent
liabilities.

 We, through our subsidiaries,
may review acquisition and strategic investment prospects that we believe would complement the current product offerings of Dongfang Paper,
augment its market coverage or enhance its technical capabilities, or otherwise offer growth opportunities. From time to time we review
investments in new businesses and we, through our subsidiaries, expect to make investments in, and to acquire, businesses, products, or
technologies in the future. We expect that when we raise funds from investors for any of these purposes we will be either the issuer or
the primary obligor while the proceeds will be forwarded to Dongfang Paper. In the event of any future acquisitions, we could:

 issue equity securities which would dilute current stockholders' percentage ownership;

 incur substantial debt;

 assume contingent liabilities; or

 expend significant cash.

 These actions could have
a material adverse effect on our operating results or the price of our common stock. Moreover, even if we do obtain benefits in the form
of increased sales and earnings, there may be a lag between the time when the expenses associated with an acquisition are incurred and
the time when we recognize such benefits. Acquisitions and investment activities also entail numerous risks, including:

 difficulties in the assimilation of acquired operations, technologies and/or products;

 unanticipated costs associated with the acquisition or investment transaction;

 the diversion of management's attention from other business concerns;

 adverse effects on existing business relationships with suppliers and customers;

 risks associated with entering markets in which Dongfang Paper has no or limited prior experience;

 the potential loss of key employees of acquired organizations; and

 substantial charges for the amortization of certain purchased intangible assets, deferred stock compensation or similar items.

 We cannot ensure that we
will be able to successfully integrate any businesses, products, technology, or personnel that we might acquire in the future and our
failure to do so could have a material adverse effect on our and/or Dongfang Paper's business, operating results and financial condition.

 We are responsible for the indemnification of our officers and
directors.

 Our Articles of Incorporation
provides for the indemnification and/or exculpation of our directors, officers, employees, agents and other entities which deal with us
to the maximum extent provided, and under the terms provided, by the laws and decisions of the courts of the state of Nevada. Although
we do maintain professional error and omission insurance for the officers and directors, due to limitations of the insurance coverage
these indemnification provisions could still result in substantial expenditures which we may be unable to recoup through the insurance
and could adversely affect our business and financial conditions. Zhenyong Liu, our Chairman of the Board and Chief Executive Officer,
Jing Hao, our Chief Financial Officer, Dahong Zhou, our Secretary, and Marco Ku Hon Wai, Wenbing Christopher Wang, Lusha Niu, and Fuzeng
Liu, our directors, are key personnel with rights to indemnification under our Articles of Incorporation.

 We are dependent on certain key personnel and loss of
these key personnel could have a material adverse effect on our business, financial condition and results of operations.

 Our success is, to a certain
extent, attributable to the management, sales and marketing, and paper factory operational expertise of key personnel. Zhenyong Liu, our
Chief Executive Officer and Chairman of the Board, Jing Hao, our Chief Financial Officer, Dahong Zhou, our Secretary, and Shuting Liang,
Dongfang Paper's General Engineer, Gengqi Yang, Dongfang Paper's Vice President of Sales and Marketing, Xuetao Chen, Dongfang
Paper's Vice President of Environmental Protection and Xiaodong Liu, Baoding Shengde's General Manager, perform key functions
in the operation of our business. There can be no assurance that IT Tech Packaging, Dongfang Paper or Baoding Shengde will be able to
retain these officers after the term of their employment contracts expire. The loss of these officers could have a material adverse effect
upon our business, financial condition, and results of operations. We do not carry key man life insurance for any of our key personnel
or personnel nor do we foresee purchasing such insurance to protect against a loss of key personnel and personnel.

 We are dependent upon the
services of Mr. Zhenyong Liu for the continued growth and operation of our company because of his experience in the industry and his personal
and business contacts in the PRC. Although Mr. Liu has entered into an employment agreement with Baoding Shengde, our wholly owned subsidiary
and a PRC company, and that we have no reason to believe that Mr. Liu will discontinue his services with us or Dongfang Paper, the interruption
or loss of his services would adversely affect our ability to effectively run our business and pursue our business strategy as well as
our results of operations.

 We may not be able to hire and retain qualified
personnel to support our growth and if we are unable to retain or hire these personnel in the future, our ability to improve our products
and implement our business objectives could be adversely affected.

 We must attract, recruit
and retain a sizeable workforce of technically competent employees. Competition for senior management and senior personnel in the PRC
is intense, the pool of qualified candidates in the PRC is very limited, and we may not be able to retain the services of our senior executives
or senior personnel, or attract and retain high-quality senior executives or senior personnel in the future. This failure could materially
and adversely affect our future growth and financial condition.

 Our operating results may fluctuate as a result of factors beyond
our control.

 Our operating results
may fluctuate significantly in the future as a result of a variety of factors, many of which are beyond our control. These factors include:

 the costs of paper products and development;

 the relative speed and success with which we can obtain and maintain customers, merchants and vendors for our products;

 capital expenditure for equipment;

 marketing and promotional activities and other costs;

 changes in our pricing policies, suppliers and competitors;

 the ability of our suppliers to provide products in a timely manner to their customers;

 changes in operating expenses;

 increased competition in the paper markets; and

 other general economic and seasonal factors.

 We face risks related to product liability claims.

 We presently do not maintain
product liability insurance. We face the risk of loss because of adverse publicity associated with product liability lawsuits, whether
or not such claims are valid. We may not be able to avoid such claims. Although product liability lawsuits in the PRC are rare, and we
have not, to date, experienced significant failure of our products, there is no guarantee that we will not face such liability in the
future. This liability could be substantial and the occurrence of such loss or liability may have a material adverse effect on our business,
financial condition and prospects.

 Our operating results also depend on the availability and pricing
of energy and raw materials.

 In addition to our dependence
upon wood pulp, recycled white scrap paper and paperboard costs, our operating results depend on the availability and pricing of energy
and other raw materials. An interruption in the supply of supplemental chemical agents could cause a material disruption at our mill.
In addition, an interruption in the supply of natural gas could cause a material disruption at our facilities. At present, our raw materials
including natural gas are purchased from a number of suppliers, of which the three largest suppliers account for over 95% of all purchases.
If any of these contracts were to be terminated for any reason, or not renewed upon expiration, or if market conditions were to substantially
change creating a significant increase in the price of natural gas and recycled paper, we may not be able to find alternative, comparable
suppliers or suppliers capable of providing gas to us on terms or in amounts satisfactory to us.

 We replaced all the coal
boilers with natural gas boiler in September 2017, but due to the gas consumption rise significantly, the government will from time to
time issue mandated restriction/suspension of natural gas supply for all natural gas consumption industries, including the paper manufacturing
industry in order to secure adequate natural gas to households uses in urban and rural areas. We are subject to the risks of natural gas
supply restriction and above-mentioned factors. As a result, our business, financial condition and operating results could suffer.

 A material disruption at one of our manufacturing facilities
could prevent us from meeting customer demand, reduce our sales, and/or negatively affect our net income.

 Any of our manufacturing facilities, or any of
our machines within an otherwise operational facility, could cease operations unexpectedly due to a number of events, including:

 maintenance outages;

 prolonged power failures;

 an equipment failure, including any malfunction of our waste water treatment facilities;

 disruption in the supply of raw materials, such as wood fiber, energy, or chemicals;

 a chemical spill or release;

 closure because of environmental-related concerns;

 explosion of a boiler;

 the effect of a drought or reduced rainfall on our water supply;

 disruptions in the transportation infrastructure, including roads, bridges, railroad tracks, and tunnels;

 fires, floods, earthquakes, hurricanes, epidemic or other catastrophes;

 terrorism or threats of terrorism;

 labor difficulties; or

 other operational problems.

 If any of the abovementioned events were to occur,
we may be unable to meet customer demand, which may adversely affect our sales and net income.

 Our certificates, permits, and licenses
related to our papermaking operations are subject to governmental control and renewal and failure to obtain renewal will cause all or
part of our operations to be terminated.

 In 1988, the National Environmental
Protection Bureau issued Interim Measures on the Administration of Water Pollutants Discharge Permits, requiring all companies discharging
pollution into the water as a direct or indirect byproduct of production to adhere to certain caps on pollution discharge. On January
24, 2021, the State Council issued Regulations on the Administration of Pollutant Discharge Permits, which has effected since March 1,
2022. Additionally, such companies were required to obtain and annually renew a Pollution Discharge Permit in order to conduct their operations.
On December 24, 2021, the Standing Committee of the National People's Congress issued Law of the People's Republic of China
on the Prevention and Control of Noise Pollution (the "Prevention and Control of Noise Pollution Law"), which became effective
on June 5, 2022. According to the Prevention and Control of Noise Pollution Law, entities subject to the pollutant discharge licensing
management requirements shall not emit industrial noise without a pollutant discharge permit and shall prevent and control noise pollution
according to the requirements of the pollutant discharge permit. The noise pollution has been included in the Pollution Discharge Permit,
and we conduct quarterly test on the noise through qualified testing institutions to comply with the laws, which is required by laws.

 The PRC government has the
authority to shut down a company's operations for its failure to maintain a valid permit. We renewed our Pollution Discharge Permit
in June 2020. Our latest permit is effective from June 28, 2020 through June 27, 2025. Pollution discharge Permit for Tengsheng Paper
was effective from August 10, 2021 through August 9, 2026. An application to renew will be filed by us with the local environment protection
agency before the expiration.

 The failure by us to maintain or obtain
any certificate, permit, and license necessary for our operations or the failure by us to obtain the renewal of any such certificate,
permit or license may materially and adversely affect our business, prospects, financial condition and results of operation.

 Compliance with environmental regulations
is expensive, and noncompliance may result in adverse publicity and potentially significant monetary damages and fines or suspension of
our business operations.

 We are required to comply
with all Chinese national and local regulations regarding the protection of the environment. Compliance with environmental regulation
is expensive. The Chinese government is adopting even more stringent environmental protection and operational safety regulations and the
costs of complying with these regulations are expected to increase. Although we have obtained all of the necessary approvals and permits
for our production facilities currently existing, we cannot assure you that we will be able to comply with all applicable environmental
protection and operational safety requirements, and obtain all of the required governmental approvals and permits that may be or may become
applicable to us on a timely basis, or at all, or will be able to complete all our registrations and filings with the government, in time
for our future projects. The relevant governmental authorities may impose on us fines for any non-compliance, set deadlines for rectification,
and order us to cease construction or production if we fail to comply with their requirements.

 If we are unable to respond to pricing pressures, our business
may be harmed.

 In order to remain
competitive, from time to time we have to adjust the prices of our products to remain competitive. We may not have available sufficient
financial or other resources to continue to make investments necessary to maintain our competitive position.

 If we fail to introduce enhancements
to our existing products or to develop new products, our business and results of operations could be adversely affected.

 We believe that
our future success depends in part on our ability to enhance our existing products and develop new products in order to continue to meet
customer demand. Our failure to introduce new or enhanced products on a timely and cost-competitive basis, or the development of processes
that make our existing products obsolete, could harm our business and results of operations.

 We have limited insurance coverage and may incur losses resulting
from product liability claims or business interruptions.

 As the insurance industry
in China is still in an early stage of development, insurance companies in China currently offer limited business insurance products.
We do not have any product liability insurance or business interruption insurance. Based on the insurance products available in China,
even if we decide to take out business interruption coverage, such insurance as currently available offers limited coverage compared to
that offered in many other jurisdictions. Any business disruption, natural disaster, or product liability claim could result in our incurring
substantial costs and diversion of resources, which would have an adverse effect on our business and results of operations.

 Our failure to protect our intellectual property rights
may undermine our competitive position, and external infringements of our intellectual property rights may adversely affect our business.

 Our success and ability
to compete depends in part on our intellectual property. We primarily rely on a combination of trademark, trade secret, and copyright
laws, as well as confidentiality procedures and contractual restrictions with our employees, contractors and others to establish and protect
our intellectual property rights. However, confidentiality and license arrangements may be breached by counterparties, and there may not
be adequate remedies available to us for any such breach. Accordingly, we may not be able to effectively protect our intellectual property
rights or to enforce our contractual rights. In addition, our trade secrets may be leaked or otherwise become available to, or be independently
discovered by, our competitors. The steps we take to protect our intellectual property rights may be inadequate or we may be unable to
secure intellectual property protection for some of our properties. Infringement of intellectual property rights continues to pose a serious
risk of doing business.

 We may in the future file,
patent applications on certain of our innovations. It is possible, however, that these innovations may not be patentable. In addition,
given the cost, effort and risks associated with patent application, we may choose not to seek patent protection for some innovations.
Furthermore, our patent applications may not lead to granted patents, the scope of the protection gained may be insufficient or an issued
patent may be deemed invalid or unenforceable. We also cannot guarantee that any of our present or future patents or other intellectual
property rights will not lapse or be invalidated, circumvented, challenged, or abandoned.

 If we are unable to protect
our intellectual property, our competitors could use our intellectual property to market offerings similar to ours and our ability to
compete effectively would be impaired. Moreover, others may independently develop technologies that are competitive to ours or infringe
on our intellectual property. The enforcement of our intellectual property rights depends on our legal actions against these infringers
being successful, but we cannot be sure these actions will be successful, even when our rights have been infringed. In addition, defending
our intellectual property rights might entail significant expense and diversion of management resources. Any of our intellectual property
rights may be challenged by others or invalidated through administrative processes or litigations. We can provide no assurance that we
will prevail in such litigations, and, even if we do prevail, we may not obtain a meaningful relief. Accordingly, despite our efforts,
we may be unable to prevent external parties from infringing or misappropriating our intellectual property. Any intellectual property
that we own may not provide us with competitive advantages or may be successfully challenged by external parties.

 We may be subject to intellectual property
infringement claims or other allegations, which may materially and adversely affect our business, financial condition and prospects.

 We cannot be certain that
we do not or will not infringe patents, copyrights, trademarks or other intellectual property rights held by external parties. From time
to time, we may be subject to legal proceedings and claims alleging infringement of patents, trademarks, copyrights or other intellectual
property rights, or misappropriation of creative ideas or formats, or other infringement of proprietary, which may materially and adversely
affect our business, financial condition and prospects.

 Risks Related To Doing Business in the PRC

 The PRC government has significant oversight
and discretion over the conduct of a PRC company's business operations or to exert control over any offering of securities conducted
overseas and/or foreign investment in China-based issuers, and may intervene with or influence our operations, may limit or completely
hinder our ability to offer or continue to offer securities to investors, and may cause the value of such securities to significantly
decline or be worthless, as the government deems appropriate to further regulatory, political and societal goals.

 The PRC government may intervene
or influence our operations at any time, which could result in a material change in our operations and/or the value of our common stock.
For example, the PRC government has recently published new policies that significantly affected certain industries such as the education
and internet industries, and we cannot rule out the possibility that it will in the future release regulations or policies regarding any
industry that could adversely affect the business, financial condition and results of operations of our company. Furthermore, the PRC
government has also recently indicated an intent to exert more oversight and control over securities offerings and other capital markets
activities that are conducted overseas and foreign investment in China-based companies. Any such action, once taken by the PRC government,
could significantly limit or completely hinder our ability to offer or continue to offer securities to investors and cause the value of
such securities to significantly decline or in extreme cases, become worthless.

 Recently, the PRC government
initiated a series of regulatory actions and statements to regulate business operations in China with little advance notice, including
cracking down on illegal activities in the securities market, enhancing supervision over China-based companies listed overseas using variable
interest entity structure, adopting new measures to extend the scope of cybersecurity reviews, and expanding the efforts in anti-monopoly
enforcement. Currently, these statements and regulatory actions have had no impact on our daily business operation, the ability to accept
foreign investments and list our securities on an U.S. or other foreign exchange. Since these statements and regulatory actions are new,
it is highly uncertain how soon legislative or administrative regulation making bodies will respond and what existing or new laws or regulations
or detailed implementations and interpretations will be modified or promulgated, if any, and the potential impact such modified or new
laws and regulations will have on our daily business operation, the ability to accept foreign investments and list our securities on an
U.S. or other foreign exchange.

 The CSRC has released the Trial Measures
for Administration of Overseas Securities Offerings and Listings by Domestic Companies (the "Trial Measures"). While such
rules have not yet gone into effect, the Chinese government may exert more oversight and control over offerings that are conducted overseas
and foreign investment in China-based issuers, which could significantly limit or completely hinder our ability to continue to offer our
securities to investors and could cause the value of our securities to significantly decline or become worthless.

 On February 17, 2023, with
the approval of the State Council, the CSRC released the Trial Measures and five supporting guidelines, which will come into effect on
March 31, 2023. According to the Trial Measures, (1) domestic companies that seek to offer or list securities overseas, both directly
and indirectly, should fulfill the filing procedures and report relevant information to the CSRC; if a domestic company fails to complete
the filing procedures or conceals any material fact or falsifies any major content in its filing documents, such domestic company may
be subject to administrative penalties by the CSRC,, such as order to rectify, warnings, fines, and its controlling shareholders, actual
controllers, the person directly in charge and other directly liable persons may also be subject to administrative penalties, such as
warnings and fines; (2) if the issuer meets both of the following conditions, the overseas offerings and listings shall be determined
as an indirect overseas offerings and listings by a domestic company: (i) 50% or more of the issuer's operating revenue, total profit,
total assets or net assets as documented in its audited consolidated financial statements for the most recent accounting year is accounted
for by domestic enterprises; and; (ii) its major operational activities are carried out in China or its main places of business are located
in China, or the senior managers in charge of its business operation and management are mostly Chinese citizens or domiciled in China;
and (3) where a domestic company seeks to indirectly offer and list securities in an overseas market, the issuer shall designate a major
domestic operating entity responsible for all filing procedures with the CSRC, and where an issuer makes an application for initial public
offerings or listings in an overseas market, the issuer shall submit filings with the CSRC within three business days after such application
is submitted; if the issuer submits the application documents for offerings or listings in secret or non-public ways overseas, it may
submit an explanation at the time of filing, and the application shall be postponed until the application documents are reported to the
CSRC within three business days after the application documents are disclosed overseas.

 The Trial Measures, when
coming into effect on March 31, 2023, may subject us to additional compliance requirements in the future, and we cannot assure you that
we will be able to get the clearance of filing procedures under the Trial Measures on a timely basis, or at all. Any failure of us to
fully comply with new regulatory requirements may significantly limit or completely hinder our ability to continue to offer our securities,
cause significant disruption to our business operations, and severely damage our reputation, which would materially and adversely affect
our consolidated financial condition and results of operations and cause our securities to significantly decline in value or become worthless.
We believe that we, our PRC Subsidiaries, the consolidated VIE and its subsidiary are not required to fulfill filing procedures and obtain
approvals from the CSRC to continue to offer our securities or operate the business of the consolidated VIE and its subsidiary. In addition,
to date, none of us, our PRC Subsidiaries, consolidated VIE and its subsidiary have received any filing or compliance requirements from
CSRC for the listing of the Company at NYSE American and all of its overseas offerings. Based on our understanding of the current PRC
laws, we believe that the CSRC's approval is not required to be obtained for ITP's continued listing on NYSE American; however,
there are substantial uncertainties regarding the interpretation and application of the M&A Rules, other PRC Laws and future PRC laws
and regulations, and there can be no assurance that any PRC governmental agency will not take a view that is contrary to or otherwise
different from our belief stated herein.

 Recent greater oversight by the
Cyberspace Administration of China, or the "CAC," over data security, particularly for companies seeking to list on a foreign
exchange, could adversely impact the business of us, the consolidated VIE and its subsidiary and investing in our securities.

 On December 28, 2021, the
CAC, together with 12 other governmental departments of the PRC, jointly promulgated the Cybersecurity Review Measures, which became effective
on February 15, 2022. The Cybersecurity Review Measures provides that, in addition to critical information infrastructure operators ("CIIOs")
that intend to purchase Internet products and services, data processing operators engaging in data processing activities that affect or
may affect national security must be subject to cybersecurity review by the Cybersecurity Review Office of the PRC. According to the Cybersecurity
Review Measures, a cybersecurity review assesses potential national security risks that may be brought about by any procurement, data
processing, or overseas listing. The Cybersecurity Review Measures further requires that CIIOs and data processing operators that possess
personal data of at least one million users must apply for a review by the Cybersecurity Review Office of the PRC before conducting listings
in foreign countries.

 On November 14, 2021, the
CAC published the Draft Regulations on the Network Data Security Administration (Draft for Comments) (the "Security Administration
Draft"), which provides that data processing operators engaging in data processing activities that affect or may affect national
security must be subject to network data security review by the relevant Cyberspace Administration of the PRC. According to the Security
Administration Draft, data processing operators who possess personal data of at least one million users or collect data that affects or
may affect national security must be subject to network data security review by the relevant Cyberspace Administration of the PRC. The
deadline for public comments on the Security Administration Draft was December 13, 2021.

 The Security Assessment
Measures for Outbound Data Transfers which was released on May 19, 2022 at the 10th executive meeting of the Cybersecurity Administration
of China in 2022, and implemented on September 1, 2022, stipulates that a data processor shall declare security assessment for its outbound
data transfer to the CAC at the provincial level: (i) where a data processor provides critical data abroad; (ii) where a CIIO or a data
processor processing the personal information of more than one million people provides personal information abroad; (iii) where a data
processor has provided personal information of 100,000 people or sensitive personal information of 10,000 people in total abroad since
January 1 of the previous year; and (iv) other circumstances prescribed by the CAC for which declaration for security assessment for outbound
data transfers is required.

 We believe none of us, our
PRC Subsidiaries, the consolidated VIE or its subsidiaries is a CIIO, and we believe that, to date, we, all of our PRC Subsidiaries, the
consolidated VIE and its subsidiary are not required to go through cybersecurity review from the CAC to continue to offer our securities
or operate the business of the consolidated VIE and its subsidiary. In addition, as of the date of this annual report, we, our PRC Subsidiaries,
consolidated VIE and its subsidiary have not received any notice from any authorities identifying us as a CIIO or requiring us to go through
cybersecurity review or network data security review by the CAC. We, our PRC Subsidiaries, consolidated VIE and its subsidiary have not
been required to obtain any approvals or permits from CAC. When the Cybersecurity Review Measures become effective and if the Security
Administration Draft is enacted as proposed, we believe that the operations of the consolidated VIE and its subsidiary and our listing
will not be affected and that we, the consolidated VIE and its subsidiary will not be subject to cybersecurity review or network data
security review by the CAC, given that: (i) as a company that mainly engages in paper production and distribution, our PRC Subsidiaries,
the consolidated VIE and VIE's subsidiaries are unlikely to be classified as CIIOs by the PRC regulatory agencies; (ii) we, the
consolidated VIE and its subsidiary possess personal data of fewer than one million individual clients in the business operations as of
the date of this annual report and do not anticipate that we, the consolidated VIE and its subsidiary will be collecting over one million
users' personal information in the near future, which we understand might otherwise subject us, the consolidated VIE and its subsidiary
to the Cybersecurity Review Measures; and (iii) data processed in the business of the consolidated VIE and its subsidiary is unlikely
to have a bearing on national security and therefore is unlikely to be classified as core or important data by the authorities. There
remains uncertainty, however, as to how the Cybersecurity Review Measures and the Security Administration Draft will be interpreted or
implemented and whether the PRC regulatory agencies, including the CAC, may adopt new laws, regulations, rules, or detailed implementation
and interpretation related to the Cybersecurity Review Measures and the Security Administration Draft. If any such new laws, regulations,
rules, or implementation and interpretation come into effect, we will take all reasonable measures and actions to comply and to minimize
the adverse effect of such laws on us. We cannot guarantee, however, that we, the consolidated VIE and its subsidiary will not be subject
to cybersecurity review and network data security review in the future. During such reviews, we, the consolidated VIE and its subsidiary
may be required to suspend our operation or experience other disruptions to our operations. Cybersecurity review and network data security
review could also result in negative publicity with respect to our Company and diversion of our managerial and financial resources, which
could materially and adversely affect the business, financial conditions, and results of operations of us, the consolidated VIE and its
subsidiary.

 The occurrence of security
breaches and cyber-attacks could negatively impact our business.

 Information technology systems
are important to our business and operations. We are subject to attempts to compromise our security and information systems, including
denial of service attacks, viruses, malicious software or ransomware, and exploitations of system flaws or weaknesses. Error or malfeasance
or other irregularities may also result in the failure of our or our third-party service providers' cybersecurity measures and may give
rise to a cybersecurity incident. The techniques used to conduct security breaches and cyber-attacks, as well as the sources and targets
of these attacks, change frequently and may not be recognized until launched against us or our third-party service providers. We or our
third-party service providers may not have the resources or technical sophistication to anticipate or prevent rapidly evolving types of
cyber-attacks. The primary risks that could directly result from the occurrence of security breaches and cyber-attacks include operational
interruption, financial losses, personal information leakage and non-compliance. The occurrence of such incidents could negatively impact
our business operations and our relationships with customers and employees, and damage our reputation. If we or our third-party service
providers are unable to avert security breaches and cyber-attacks, we could incur significantly higher costs, including remediation costs
to repair damage caused by the breach, costs to deploy additional personnel and network protection technologies, train employees and engage
third-party experts and consultants, as well as litigation costs resulting from the incident. These costs, which could be material, could
adversely impact our results of operations in the period in which they are incurred and may not meaningfully limit the success of future
attempts to breach our information technology systems.

 Our business may be subject to a variety of PRC laws and other
obligations regarding cybersecurity and data protection.

 We receive and maintain
certain personal, financial and other information about our customers in various information systems that we maintain and in those maintained
by third-party service providers. Our information technology systems, such as those we use for administrative functions, including human
resources, payroll, accounting and internal and external communications, can contain personal, financial or other information of our employees.
We also maintain important proprietary and other confidential information related to our operations. As a result, we face risks inherent
in handling and protecting information.

 If our security and information
systems or the security and information systems of third-party service providers are compromised for any reason, including as a result
of data corruption or loss, security breach, cyber-attack or other external or internal methods, or if our employees, or service providers
fail to comply with laws, regulations and practice standards, and this information is obtained by unauthorized persons, used or disclosed
inappropriately or destroyed, it could subject us to litigation and government enforcement actions, cause us to incur substantial costs,
liabilities and penalties and/or result in a loss of customer confidence, any and all of which could adversely affect our business, reputation,
ability to attract new customers, results of operations and financial condition.

 In addition, our business
may be subject to PRC laws relating to the collection, use, sharing, retention, security, and transfer of confidential and private information,
such as personal information and other data. These laws continue to develop, and the PRC government may adopt other rules and restrictions
in the future. Non-compliance could result in penalties or other significant legal liabilities.

 Pursuant to the PRC Cybersecurity
Law, which was promulgated by the Standing Committee of the National People's Congress on November 7, 2016 and took effect on June
1, 2017, personal information and important data collected and generated by a critical information infrastructure operator in the course
of its operations in China must be stored in China, and if a critical information infrastructure operator purchases internet products
and services that affects or may affect national security, it should be subject to cybersecurity review by the Cyberspace Administration
of China ("CAC"). Due to the lack of further interpretations, the exact scope of "critical information infrastructure
operator" remains unclear.

 On April 13, 2020, twelve
Chinese government agencies jointly promulgated the Measures for Cybersecurity Review (2020 version) ("Old Measures"), which
became effective on June 1, 2020, set forth the cybersecurity review mechanism for critical information infrastructure operators, and
provided that critical information infrastructure operators ("CIIOs") who intend to procure network products and services
that affect or may affect national security shall be subject to a cybersecurity review. On June 10, 2021, the Standing Committee of the
National People's Congress promulgated the PRC Data Security Law, which took effect in September 2021. The Data Security Law provides
for a security review procedure for the data activities that may affect national security. Moreover, the CAC issued the Measures of Cybersecurity
Review (Revised Draft for Comments) on July 10, 2021, which requires operators with personal information of more than one million users
who want to list abroad to file a cybersecurity review with the CAC. Furthermore, the General Office of the Central Committee of the Communist
Party of China and the General Office of the State Council jointly issued the Opinions on Severe and Lawful Crackdown on Illegal Securities
Activities, which was available to the public on July 6, 2021. These opinions emphasized the need to strengthen the administration over
illegal securities activities and the supervision on overseas listings by China-based companies. These opinions proposed to take effective
measures, such as promoting the construction of relevant regulatory systems, to deal with the risks and incidents facing China-based overseas-listed
companies and the demand for cybersecurity and data privacy protection.

 The Data Security Law also
sets forth the data security protection obligations for entities and individuals handling personal data, including that no entity or individual
may acquire such data by stealing or other illegal means, and the collection and use of such data should not exceed the necessary limits
The costs of compliance with, and other burdens imposed by, PRC Cybersecurity Law and any other cybersecurity and related laws may limit
the use and adoption of our products and services and could have an adverse impact on our business. Further, if the enacted version of
the Measures for Cybersecurity Review mandates clearance of cybersecurity review and other specific actions to be completed by companies
like us, we face uncertainties as to whether such clearance can be timely obtained, or at all.

 On January 4, 2022, the
CAC issued the revised Measures on Cyberspace Security Review (the "Revised Measures") that has come into effect on February
15, 2022, which required that, among others, in addition to "operator of critical information infrastructure," any "network
platform operator data processor" controlling personal information of no less than one million users which seeks to list in a foreign
stock exchange should also be subject to cybersecurity review. We do not believe we are among the "operator of critical information
infrastructure" or "network platform operator data processor" who control over one million personal information as mentioned
above; however, the definition of "network platform operator" is unclear. The revised draft of the Measures for Cybersecurity
Review is in the process of being formulated and it is also unclear on how it will be interpreted, amended and implemented by the relevant
PRC governmental authorities. The Revised Measures also establish a Cybersecurity Review Office (the "CRO"), an administrative
body within the CAC, to formulate the regulations for cybersecurity review and to lead the cybersecurity review process. Applicable CIIOs
and NP operators are required to submit an application to the CRO, and the CRO will assess whether a cybersecurity review is required.

 As these laws, opinions
and the measures were recently issued, official guidance and interpretation of these remain unclear in several respects at this time,
and the PRC government authorities may have wide discretion in the interpretation and enforcement of these laws, opinions and the measures.
Therefore, it is uncertain whether the future regulatory changes would impose additional restrictions on our business.

 We believe that we are currently
not be subject to the cybersecurity review by the CAC, given the factors discussed above. However, there remains uncertainty as to how
the Revised Measures will be interpreted or implemented and whether the PRC regulatory agencies, including the CAC, may adopt new laws,
regulations, rules, or detailed implementation and interpretation related to the Revised Measures. If any such new laws, regulations,
rules, or implementation and interpretation come into effect, we will take all reasonable measures and actions to comply and to minimize
the adverse effect of such laws on us.

 We cannot assure you that
PRC regulatory agencies, including the CAC, would take the same view as we do. In the event that we are subject to any mandatory cybersecurity
review and other specific actions required by the CAC, we face uncertainty as to whether any clearance or other required actions can be
timely completed, or at all. Given such uncertainty, we may be further required to suspend our relevant business, or face other penalties,
which could materially and adversely affect our business, financial condition, and results of operations.

 Changes in the policies of the PRC government could have
a significant impact upon the business we may be able to conduct in the PRC and the profitability of such business.

 Our business operations,
financial condition, results of operations and prospects may be adversely affected by the current and future political environment in
the PRC. The PRC has operated as a socialist state since the middle of the 20th century and is controlled by the Communist Party of China.
The Chinese government exerts substantial influence and control over the manner in which we must conduct our business activities. The
PRC has only permitted provincial and local economic autonomy and private economic activities since 1978. The government of the PRC has
exercised and continues to exercise substantial control over virtually every sector of the Chinese economy, including the paper industry,
through regulation and state ownership. Our ability to operate in the PRC may be adversely affected by changes in Chinese laws and regulations,
including those relating to taxation, import and export tariffs, raw materials, environmental regulations, land use rights, property and
other matters. Under its current leadership, the government of the PRC has been pursuing economic reform policies that encourage private
economic activity and greater economic decentralization. There is no assurance, however, that the government of the PRC will continue
to pursue these policies, or that it will not significantly alter these policies from time to time without notice.

 Policies of the PRC government
can have significant effects on the economic conditions of the PRC. The PRC government has confirmed that economic development will follow
the model of a market economy. Under this direction, we believe that the PRC will continue to strengthen its economic and trading relationships
with foreign countries and business development in the PRC will follow market forces. While we believe that this trend will continue,
there can be no assurance that this will be the case.

 A change in policies by
the PRC government could adversely affect our interests by, among other factors: changes in laws, regulations or the interpretation thereof,
confiscatory taxation, restrictions on currency conversion, imports or sources of supplies, or the expropriation or nationalization of
private enterprises. Although the PRC government has been pursuing economic reform policies for more than three decades, there is no assurance
that the government will continue to pursue such policies or that such policies may not be significantly altered, especially in the event
of a change in leadership, social or political disruption, or other circumstances affecting the PRC's political, economic and social
life.

 The PRC laws and regulations governing our
current business operations are sometimes vague and uncertain. Any changes in such PRC laws and regulations may harm our business.

 The PRC laws and regulations
governing our current business operations are sometimes vague and uncertain. The PRC's legal system is a civil law system based
on written statutes, in which system decided legal cases have little value as precedents unlike the common law system prevalent in the
United States. There are substantial uncertainties regarding the interpretation and application of PRC laws and regulations, including
but not limited to the laws and regulations governing our business, the enforcement and performance of our contractual arrangements with
our VIE, Dongfang Paper, and its shareholders, or the enforcement and performance of our arrangements with customers in the event of the
imposition of statutory liens, death, bankruptcy and criminal proceedings. The Chinese government has been developing a comprehensive
system of commercial laws, and considerable progress has been made in introducing laws and regulations dealing with economic matters such
as foreign investment, corporate organization and governance, commerce, taxation and trade. However, because these laws and regulations
are relatively new, and because of the limited volume of published cases and judicial interpretation and their lack of force as precedents,
interpretation and enforcement of these laws and regulations involve significant uncertainties. New laws and regulations that affect existing
and proposed future businesses may also be applied retroactively. Our major operating entity, Dongfang Paper, conducts its operations
in China, and as a result, we are required to comply with PRC laws and regulations. We cannot assure you that our current ownership and
operating structure would not be found in violation of any current or future PRC laws or regulations. Any of these or similar actions
could significantly disrupt our business operations or restrict us from conducting a substantial portion of our business operations, which
could materially and adversely affect our business, financial condition and results of operations. We cannot predict what effect the interpretation
of existing or new PRC laws or regulations may have on our business. If the relevant authorities find that we are in violation of PRC
laws or regulations, they would have broad discretion in dealing with such a violation, including, without limitation:

 levying fines;

 revoking Dongfang Paper's business and other licenses;

 requiring that we restructure our ownership or operations; and

 requiring that we discontinue any portion or all of our business.

 Among the material laws that we are subject to
are the Price Law of The People's Republic of China, Measurement Law of The People's Republic of China, Tax Law, Environmental
Protection Law, Contract Law, Patent Law, Accounting Laws and Labor Law.

 A slowdown, inflation or other adverse developments in the PRC
economy may harm our customers and the demand for our services and products.

 All of our operations are
conducted in the PRC and all of our revenue is generated from sales in the PRC. Although the PRC economy has grown significantly in recent
years, we cannot assure you that this growth will continue. In 2023, China's Gross Domestic Product ("GDP") growth rate
was 5.2% as compared to 3.0% in 2022. A slowdown in overall economic growth, an economic downturn, a recession or other adverse economic
developments in the PRC could significantly reduce the demand for our products and harm our business.

 Additionally, while the
PRC economy experienced rapid growth, such growth has been uneven among various sectors of the economy and in different geographical areas
of the country. Rapid economic growth could lead to growth in the money supply and rising inflation. If prices for our products rise at
a rate that is insufficient to compensate for the rise in the costs of supplies, it may harm our profitability. In order to control inflation
in the past, the PRC government has imposed controls on bank credit, limits on loans for fixed assets and restrictions on state bank lending.
Such an austere policy can lead to a slowing of economic growth.

 Our PRC Subsidiaries, consolidated VIE and
its subsidiary in China are subject to restrictions on making dividends and other payments to us or any other affiliated company.

 We are a holding company
and may receive dividends paid by our subsidiaries established in China for our cash needs, including the funds necessary to pay dividends
and other cash distributions to our shareholders to the extent we choose to do so, to service any debt we may incur and to pay our operating
expenses. Baoding Shengde's income in turn depends on the service and other fees paid by the consolidated VIE. In addition, ITP,
its subsidiaries, the consolidated VIE and the VIE's subsidiaries may also transfer cash to each other as part of the group cash
management. If any of our subsidiaries, the consolidated VIE and VIE's subsidiaries incurs debt on its own behalf in the future,
the instruments governing such debt may restrict their ability to pay dividends or make other payments to us. Current PRC regulations
permit our PRC Subsidiaries to pay dividends to us only out of their accumulated profits, if any, determined in accordance with Chinese
accounting standards and regulations. In addition, under the applicable requirements of PRC law, our PRC Subsidiaries, consolidated VIE
and its subsidiary incorporated as companies may only distribute dividends after they have made allowances to fund certain statutory reserves.
These reserves are not distributable as cash dividends.

 In addition, under the Enterprise
Income Tax Law of the PRC, which became effective on January 1, 2008 and its implementation rules, dividends paid to us by our PRC Subsidiaries
are subject to withholding tax. The withholding tax on dividends may be exempted or reduced by the PRC State Council. Currently, the withholding
tax rate is 10% unless reduced or exempted by treaty between the PRC and the tax residence of the holder of the PRC Subsidiaries.

 Furthermore, if our PRC Subsidiaries,
consolidated VIE and its subsidiary in China incur debt on their own behalf in the future, the instruments governing the debt may restrict
their ability to pay dividends or make other payments to us. In addition, the PRC tax authorities may require our PRC Subsidiaries, consolidated
VIE and its subsidiary to adjust their taxable income under the contractual arrangements we currently have in place in a manner that would
restrict our subsidiaries' ability to pay dividends and make other distributions to us.

 In addition, the PRC government
imposes controls on the convertibility of the Renminbi into foreign currencies and, in certain cases, the remittance of currency out of
China. If the foreign exchange control system prevents us from obtaining sufficient foreign currencies to satisfy our foreign currency
demands, we may not be able to pay dividends in foreign currencies to our shareholders.

 To date, our PRC Subsidiaries
have not paid dividends to us out of their accumulated profits. In the near future, we do not expect to receive dividends from our PRC
subsidiaries because the accumulated profits of the PRC Subsidiaries are expected to be used for their own business or expansions.

 For the year ended December
31, 2023, the cash flows occurred between IT Tech Packaging, its subsidiaries and the VIE included (i) loans in the amount of $4,233,999
provided by Baoding Shengde to Tengsheng Paper; (ii) loans in the amount of $2,822,666 provided by Baoding Shengde to Dongfang Paper;
(iii) the payment in the amount of 5,468,122 made by Dongfang Paper to Baoding Shengde for purchase of raw materials; and (iv) funding
through Shengde Holdings Inc. to Qianrong, with an amount of $500,000 as capital contributions. We do not have an established cash management
policy that dictates how funds are transferred between us, our PRC Subsidiaries, consolidated VIE and its subsidiary. We do not, at this
time, intend to distribute earnings or settle amounts owed under the VIE Agreements.

 In the future, cash proceeds
raised from overseas financing activities may be transferred by ITP to our PRC Subsidiaries and other subsidiaries or the consolidated
VIE and its subsidiary via capital contributions or loans, as the case may be. Amounts owed under the VIE Agreements may be returned by
Baoding Shengde or the consolidated VIE and its subsidiary through repayment of loans or payment of service fees according to the exclusive
technical service and business consulting agreement, subject to satisfaction of applicable government registration and approval requirements.
To the extent cash in the business is in the PRC, the funds may not be available to fund operations or for other use outside of the PRC
due to interventions in or the imposition of restrictions and limitations on the ability of us, our PRC Subsidiaries, or the consolidated
VIE by the PRC government to transfer cash.

 We may rely on dividends and other distributions
on equity paid by our PRC subsidiaries to fund any cash and financing requirements we may have, and any limitation on the ability of our
PRC Subsidiaries to make payments to us could have a material and adverse effect on our ability to conduct our business.

 IT Tech Packaging Inc. is
a Nevada holding company and conducts all of its business through its operating subsidiaries and the VIE. IT Tech Packaging Inc. relies
principally on dividends and other distributions on equity from our PRC Subsidiaries for cash requirements, including for services of
any debt IT Tech Packaging Inc. may incur.

 Our PRC Subsidiaries'
ability to distribute dividends is based upon its distributable earnings. Current PRC regulations permit our PRC Subsidiaries to pay dividends
to its shareholders only out of its accumulated profits, if any, determined in accordance with PRC accounting standards and regulations.
If our PRC Subsidiaries incurs debt on its own behalf in the future, the instruments governing the debt may restrict its ability to pay
dividends or make other payments to us. Any limitation on the ability of our PRC Subsidiaries to distribute dividends or other payments
to its shareholders could materially and adversely limit our ability to grow, make investments or acquisitions that could be beneficial
to our business, pay dividends or otherwise fund and conduct our business.

 In addition, the
Enterprise Income Tax Law and its implementation rules provide that a withholding tax rate of up to 10% will be applicable to dividends
payable by Chinese companies to non-PRC-resident enterprises unless otherwise exempted or reduced according to treaties or arrangements
between the PRC central government and governments of other countries or regions where the non-PRC resident enterprises are incorporated.

 Governmental control of currency conversion may limit our ability
to utilize our revenues effectively and affect the value of investors' investment.

 The PRC government imposes
controls on the convertibility of the Renminbi into foreign currencies and, in certain cases, the remittance of currency out of China.
We receive a significant portion of our revenues in Renminbi. Under our current corporate structure, our Nevada holding company may rely
on dividend payments from our PRC Subsidiaries to fund any cash and financing requirements we may have. Under existing PRC foreign exchange
regulations, payments of current account items, including profit distributions, interest payments and trade and service-related foreign
exchange transactions, can be made in foreign currencies without prior approval of SAFE by complying with certain procedural requirements.
Specifically, under the existing exchange restrictions, without prior approval of SAFE, cash generated from the operations of our PRC
subsidiaries in China may be used to pay dividends to our Nevada holding company.

 However, approval from or
registration with appropriate government authorities is required where Renminbi is to be converted into foreign currency and remitted
out of China to pay capital expenses such as the repayment of loans denominated in foreign currencies. As a result, we need to obtain
SAFE approval to use cash generated from the operations of our PRC subsidiaries and VIE to pay off their respective debt in a currency
other than Renminbi owed to entities outside China, or to make other capital expenditure payments outside China in a currency other than
Renminbi.

 The PRC government has imposed
more restrictive foreign exchange policies and stepped up scrutiny of major outbound capital movement including overseas direct investment.
More restrictions and substantial vetting process are put in place by SAFE to regulate cross-border transactions falling under the capital
account. The PRC government may at its discretion further restrict access in the future to foreign currencies for current account transactions.
If the foreign exchange control system prevents us from obtaining sufficient foreign currencies to satisfy our foreign currency demands,
we may not be able to pay dividends in foreign currencies to our shareholders of our common stock.

 PRC regulation of loans to and direct investment
in PRC entities by offshore holding companies and governmental control of currency conversion may delay us from making loans or additional
capital contributions to our PRC Subsidiaries, which could materially and adversely affect our liquidity and our ability to fund and expand
our business.

 Any funds IT Tech Packaging
Inc. transfers to its PRC Subsidiaries, either as a shareholder loan or as an increase in registered capital, are subject to approval
by or registration with relevant governmental authorities in China. According to the relevant PRC regulations on foreign invested enterprises,
or FIEs, in China, capital contributions to our PRC Subsidiaries are subject to the approval of or report investment information to the
MOFCOM or their respective local branches and registration with a local bank authorized by the SAFE. In addition, any foreign loan procured
by our PRC Subsidiaries cannot exceed statutory limits and is required to be registered with SAFE or its local branches. Any medium or
long-term loan to be provided by IT Tech Packaging Inc. to the VIE must be registered with the National Development and Reform Commission,
or NDRC, and the SAFE or its local branches. We may not be able to complete such registrations on a timely basis, with respect to future
capital contributions or foreign loans by IT Tech Packaging Inc. to its PRC Subsidiaries. If we fail to complete such registrations, our
ability to capitalize our PRC operations may be negatively affected, which could adversely affect our liquidity and our ability to fund
and expand business.

 On March 30, 2015, the SAFE
promulgated the Circular on Reforming the Management Approach Regarding the Foreign Exchange Capital Settlement of Foreign-Invested Enterprises,
or SAFE Circular 19, which took effect on June 1, 2015. SAFE Circular 19 launched a nationwide reform of the administration of the settlement
of the foreign exchange capitals of FIEs and allows FIEs to settle their foreign exchange capital at their discretion, but continues to
prohibit FIEs from using the Renminbi fund converted from their foreign exchange capital for expenditure beyond their business scopes,
providing entrusted loans or repaying loans between nonfinancial enterprises. The SAFE issued the Circular on Reforming and Regulating
Policies on the Control over Foreign Exchange Settlement of Capital Accounts, or SAFE Circular 16, effective in June 2016. Pursuant to
SAFE Circular 16, enterprises registered in China may also convert their foreign debts from foreign currency to Renminbi on a self-discretionary
basis. SAFE Circular 16 provides an integrated standard for conversion of foreign exchange under capital account items (including but
not limited to foreign currency capital and foreign debts) on a self-discretionary basis which applies to all enterprises registered in
China. SAFE Circular 16 reiterates the principle that Renminbi converted from foreign currency-denominated capital of a company may not
be directly or indirectly used for purposes beyond its business scope or prohibited by PRC laws or regulations, while such converted Renminbi
shall not be provided as loans to its non-affiliated entities. As this circular is relatively new, there remains uncertainty as to its
interpretation and application and any other future foreign exchange related rules. Violations of these Circulars could result in severe
monetary or other penalties. SAFE Circular 19 and SAFE Circular 16 may significantly limit our ability to fund the establishment of new
entities in China by the VIE, to invest in or acquire any other PRC companies through our PRC Subsidiaries, or to establish new consolidated
VIE in China, which may adversely affect our business, financial condition and results of operations.

 On October 23, 2019, the
SAFE promulgated the Notice of the State Administration of Foreign Exchange on Further Promoting the Convenience of Cross-border Trade
and Investment, or the SAFE Circular 28, which, among other things, allows all foreign-invested companies to use Renminbi converted from
foreign currency-denominated capital for equity investments in China, as long as the equity investment is genuine, does not violate applicable
laws, and complies with the negative list on foreign investment. However, since the SAFE Circular 28 is newly promulgated, it is unclear
how SAFE and competent banks will carry this out in practice.

 In light of the various
requirements imposed by PRC regulations on loans to and direct investment in PRC entities by offshore holding companies, we cannot assure
you that we will be able to complete the necessary government registrations or obtain the necessary government approvals on a timely basis,
if at all, with respect to future loans by IT Tech Packaging to its PRC Subsidiaries or with respect to future capital contributions by
IT Tech Packaging Inc. to its PRC Subsidiaries. If we fail to complete such registrations or obtain such approvals, our ability to capitalize
or otherwise fund our PRC operations may be negatively affected, which could materially and adversely affect our liquidity and our ability
to fund and expand our business.

 The fluctuation of the Renminbi may harm your investment.

 The value of the Renminbi
against the U.S. dollar and other currencies may fluctuate and is affected by, among other things, changes in the PRC's political
and economic conditions. According to the Bureau of the Fiscal Service, as of December 31, 2023, $1 is converted into 7.0827 Yuan (RMB).
As we rely entirely on revenues earned in the PRC, any significant revaluation of the Renminbi may materially and adversely affect our
cash flows, revenues and financial condition. For example, to the extent that we need to convert U.S. dollars we receive from an offering
of our securities into Renminbi for Dongfang Paper's operations, appreciation of the Renminbi against the U.S. dollar would diminish
the value of the proceeds of the offering and this could harm our business, financial condition and results of operations because it would
reduce the proceeds available to us for capital investment in proportion to the appreciation of the Renminbi. Thus, if we raise 1,000,000
U.S. dollars and the Renminbi appreciates against the U.S. dollar by 15%, then the proceeds will be worth only RMB6,020,295 as opposed
to RMB 7,082,700 prior to the appreciation. Conversely, if we decide to convert our Renminbi into U.S. dollars for the purpose of making
payments for dividends on our common shares or for other business purposes and the U.S. dollar appreciates against the Renminbi, the U.S.
dollar equivalent of the Renminbi we convert would be reduced in proportion to the amount the U.S. dollar appreciates. In addition, the
depreciation of significant RMB denominated assets could result in a charge to our income statement and a reduction in the dollar value
of these assets. Thus, if Dongfang Paper has RMB1,000,000 in assets and Renminbi is depreciated against the U.S. dollar by 15%, then the
assets will be valued at $122,773 as opposed to $141,189 prior to the depreciation.

 On July 21, 2005, the PRC
government changed its decade-old policy of pegging the value of the Renminbi to the U.S. dollar. Under the new policy, the Renminbi is
permitted to fluctuate within a narrow and managed band against a basket of certain foreign currencies. This change in policy resulted
in an approximately 4.55% appreciation of the Renminbi against the U.S. dollar as of December 31, 2023. While the international reaction
to the Renminbi revaluation has generally been positive, there remains significant international pressure on the PRC government to adopt
an even more flexible currency policy, which could result in a further and more significant depreciation of the Renminbi against the U.S.
dollar.

 Failure to comply with PRC regulations relating to the
establishment of offshore special purpose companies by PRC residents may materially adversely affect us.

 The PRC State Administration
of Foreign Exchange, or SAFE, has promulgated regulations, including the Notice on Relevant Issues Relating to Domestic Residents'
Investment and Financing and Round-Trip Investment through Special Purpose Vehicles, or SAFE Circular No. 37, effective on July 14, 2014,
and its appendixes, that require PRC residents, including PRC institutions and individuals, to register with local branches of the SAFE
in connection with their direct establishment or indirect control of an offshore entity, for the purpose of overseas investment and financing,
with such PRC residents' legally owned assets or equity interests in domestic enterprises or offshore assets or interests, referred
to in SAFE Circular No. 37 as a "special purpose vehicle." SAFE Circular No. 37 further requires amendment to the registration
in the event of any significant changes with respect to the special purpose vehicle, such as increase or decrease of capital contributed
by PRC individuals, share transfer or exchange, merger, division or other material event. In the event that a PRC shareholder holding
interests in a special purpose vehicle fails to fulfill the required SAFE registration, the PRC subsidiaries of that special purpose vehicle
may be prohibited from making profit distributions to the offshore parent and from carrying out subsequent cross-border foreign exchange
activities, and the special purpose vehicle may be restricted in their ability to contribute additional capital into its PRC subsidiaries.
Further, failure to comply with the various SAFE registration requirements described above could result in liability under PRC law for
foreign exchange evasion.

 Because of uncertainty over
the interpretation of Circular 37, we cannot assure you that, if challenged by government agencies, the structure of our organization
has fully complied with all applicable registrations or approvals required by Circular 37. Moreover, because of uncertainty over how Circular
37 will be interpreted and implemented, and how or whether SAFE will apply it to us, we cannot predict how it will affect our business
operations or future strategies. A failure by such PRC resident beneficial holders or future PRC resident stockholders to comply with
Circular 37, if SAFE requires it, could subject these PRC resident beneficial holders to fines or legal sanctions, restrict our overseas
or cross-border investment activities, limit our subsidiaries' ability to make distributions or pay dividends or affect our ownership
structure, which could adversely affect our business and prospects.

 While the approval and/or other requirements
of the CSRC or other PRC governmental authorities are currently not required, they may be required, in connection with our oversea listing
under PRC rules, regulations or policies, and, if required, we cannot predict whether or how soon we will be able to obtain such approval.

 On August 8, 2006, six PRC
regulatory agencies, including the China Securities Regulatory Commission ("CSRC"), promulgated the Regulation on Mergers
and Acquisitions of Domestic Companies by Foreign Investors ("M&A Rules"), which became effective on September 8, 2006
and then was further amended on June 22, 2009. This regulation, among other things, has certain provisions that purport to require offshore
SPVs formed for the purpose of listing and controlled by PRC individuals or companies, to obtain the approval of the CSRC prior to listing
their securities on an overseas stock exchange. On September 21, 2006, the CSRC published on its official website a notice specifying
the documents and materials that are required to be submitted for obtaining CSRC approval.

 In addition, the PRC government
authorities may strengthen oversight over offerings that are conducted overseas. For instance, on July 6, 2021, the relevant PRC governmental
authorities promulgated the Opinions on Strictly Cracking Down on Illegal Securities Activities, which emphasized the need to strengthen
the supervision over overseas listings by PRC companies. Effective measures, such as promoting the construction of relevant regulatory
systems, are to be taken to deal with the risks and incidents of China-based overseas-listed companies, cybersecurity and data privacy
protection requirements and similar matters. The Measures for Cybersecurity Review issued by the CAC on January 4, 2022 also required
that, among others, "critical information infrastructure" or internet platform operator holding over one million users'
personal information to apply for a cybersecurity review before any listing at a foreign country. These statements and regulations are
recently issued and there remain substantial uncertainties about their interpretation and implementation.

 On February 17, 2023, the CSRC
released the Trial Administrative Measures for Administration of Overseas Securities Offerings and Listings by Domestic Companies, or
the Trial Measures. and five supporting guidelines, which came into effect on March 31, 2023. Pursuant to the Trial Measures, domestic
companies that seek to offer or list securities overseas, both directly and indirectly, should fulfill the filing procedures and report
relevant information to the CSRC. For more information about the Trial Measures, see " Risk Factors — Risk Factors Relating
to Doing Business in China — The CSRC has released the Trial Measures for Administration of Overseas Securities Offerings
and Listings by Domestic Companies (the "Trial Measures"). While such rules have become into effect, the Chinese government
may exert more oversight and control over offerings that are conducted overseas and foreign investment in China-based issuers, which could
significantly limit or completely hinder our ability to continue to offer our securities to investors and could cause the value of our
securities to significantly decline or become worthless "

 We believe that, as of the
date of this annual report, we are not required to obtain any permission from PRC authorities to operate and issue securities to foreign
investors, including permissions from the CSRC or CAC. However, there is no guarantee that this will continue to be the case in the future
in connection with the listing or continued listing of our securities on NYSE American, or even in the event such permission or approval
is required and obtained, the approval could be subsequently revoked or rescinded. Any failure to obtain or a delay in obtaining the necessary
permissions from the PRC authorities to conduct offerings or listing outside of China may subject us to sanctions imposed by the PRC regulatory
authorities. If we do not receive or maintain the approvals, or we inadvertently conclude that such approvals are not required, or applicable
laws, regulations, or interpretations change such that we are required to obtain approval in the future, we may be subject to an investigation
by competent regulators, fines or penalties, or an order prohibiting us from conducting an offering, and these risks could result in a
material adverse change in our operations and the value of our company's securities, significantly limit or completely hinder our
ability to offer or continue to offer securities to investors, or cause such securities to significantly decline in value or become worthless.

 As of the date of this annual
report, we have not received any inquiry, notice, warning, sanctions or regulatory objection to our operations from the CSRC, CAC or any
other PRC governmental authorities, and our PRC Subsidiaries and the VIE have obtained all requisite permissions from PRC governmental
authorities to operate our business as currently conducted under relevant PRC laws and regulations and no permissions have been denied
by governmental authorities.

 The M&A Rules and certain other
PRC regulations establish complex procedures for some acquisitions of Chinese companies by foreign investors, which could make it more
difficult for us to pursue growth through acquisitions in China.

 Among other things, the
M&A Rules established additional procedures and requirements that could make merger and acquisition activities by foreign investors
more time consuming and complex. Such regulation requires, among other things, that the Ministry of Commerce be notified in advance of
any change-of-control transaction in which a foreign investor takes control of a PRC domestic enterprise or a foreign company with substantial
PRC operations, if certain thresholds under the Provisions on Thresholds for Prior Notification of Concentrations of Undertakings, issued
by the State Council in 2008, are triggered. Moreover, the Anti-Monopoly Law requires that the anti-monopoly law enforcement authority
shall be notified in advance of any concentration of undertaking if certain thresholds are triggered. In addition, the security review
rules issued by the State Council that became effective in March 2011 specify that mergers and acquisitions by foreign investors that
raise "national defense and security" concerns and mergers and acquisitions through which foreign investors may acquire de
facto control over domestic enterprises that raise "national security" concerns are subject to strict review by the Ministry
of Commerce, and the rules prohibit any activities attempting to bypass a security review, including by structuring the transaction through
a proxy or contractual control arrangement.

 In the future, we may grow
our business by acquiring complementary businesses. Complying with the requirements of the above-mentioned regulations and other relevant
rules to complete such transactions could be time consuming, and any required approval processes, including obtaining approval from the
Ministry of Commerce or its local counterparts may delay or inhibit our ability to complete such transactions, which could affect our
ability to expand our business or maintain our market share.

 The PRC's legal and judicial system may not adequately
protect our business and operations and the rights of foreign investors.

 The PRC legal and judicial
system may negatively impact foreign investors. In 1982, the National People's Congress amended the Constitution of China to authorize
foreign investment and guarantee the "lawful rights and interests" of foreign investors in the PRC. However, the PRC's
system of laws is not yet comprehensive. The legal and judicial systems in the PRC are still rudimentary, and enforcement of existing
laws is inconsistent. Many judges in the PRC lack the depth of legal training and experience that would be expected of a judge in a more
developed country. Because the PRC judiciary is relatively inexperienced in enforcing the laws that do exist, anticipation of judicial
decision-making is more uncertain than would be expected in a more developed country. It may be impossible to obtain swift and equitable
enforcement of laws that do exist, or to obtain enforcement of the judgment of one court by a court of another jurisdiction. The PRC's
legal system is based on the civil law regime, that is, it is based on written statutes; a decision by one judge does not set a legal
precedent that is required to be followed by judges in other cases. In addition, the interpretation of Chinese laws may be varied to reflect
domestic political changes.

 The trend of legislation
over the last 20 years has significantly enhanced the protection of foreign investment and allowed for more control by foreign parties
of their investments in Chinese enterprises. However, the promulgation of new laws, changes to existing laws and the pre-emption of local
regulations by national laws may adversely affect foreign investors. A change in leadership, social or political disruption, or unforeseen
circumstances affecting the PRC's political, economic or social life, may affect the PRC government's ability to continue
to support and pursue these reforms. Such a shift could have a material adverse effect on our business and prospects.

 The practical effect of
the PRC legal system on our business operations in the PRC can be viewed from two separate but intertwined considerations. First, as a
matter of substantive law, the foreign invested enterprise laws provide significant protection from government interference. In addition,
these laws guarantee the full enjoyment of the benefits of corporate articles and contracts to foreign invested enterprise participants.
These laws, however, do impose standards concerning corporate formation and governance, which are qualitatively different from the general
corporation laws of the United States. Similarly, the PRC accounting laws mandate accounting practices, which are not consistent with
U.S. generally accepted accounting principles. PRC's accounting laws require that an annual "statutory audit" be performed
in accordance with PRC accounting standards and that the books of account of foreign invested enterprises are maintained in accordance
with Chinese accounting laws. Article 14 of the People's Republic of China Wholly Foreign-Owned Enterprise Law requires a wholly
foreign-owned enterprise to submit certain periodic fiscal reports and statements to designated financial and tax authorities, at the
risk of business license revocation. While the enforcement of substantive rights may appear less clear than United States procedures,
foreign invested enterprises and wholly foreign-owned enterprises are Chinese registered companies, which enjoy the same status as other
Chinese registered companies in business-to-business dispute resolution. Any award rendered by an arbitration tribunal is enforceable
in accordance with the United Nations Convention on the Recognition and Enforcement of Foreign Arbitral Awards (1958). Therefore, as a
practical matter, although no assurances can be given, the Chinese legal infrastructure, while different in operation from its United
States counterpart, should not present any significant impediment to the operation of foreign invested enterprises.

 Because our principal assets are located
outside of the United States and most of our directors and officers reside outside of the United States, it may be difficult for you to
effect service of legal process, enforce your rights based on U.S. federal securities laws against us and our officers or to enforce U.S.
court judgment against us or them in the PRC.

 All of our directors and
officers reside outside the United States. In addition, our operating company is located in the PRC and substantially all of our assets
are located outside of the United States. It may therefore be difficult for investors in the United States to enforce their legal rights
based on the civil liability provisions of the U.S. Federal securities laws against us in the courts of either the U.S. or the PRC and,
even if civil judgments are obtained in U.S. courts, to enforce such judgments in PRC courts. Further, it is unclear if extradition treaties
now in effect between the United States and the PRC would permit effective enforcement against us or our officers and directors of criminal
penalties, under the U.S. Federal securities laws or otherwise.

 It may be difficult for overseas regulators to conduct investigation
or collect evidence within China.

 Shareholder claims or regulatory
investigation that are common in the United States generally are difficult to pursue as a matter of law or practicality in China. For
example, in China, there are significant legal and other obstacles to providing information needed for regulatory investigations or litigations
initiated outside China. Although the authorities in China may establish a regulatory cooperation mechanism with the securities regulatory
authorities of another country or region to implement cross-border supervision and administration, such cooperation with the securities
regulatory authorities in the Unities States may not be efficient in the absence of mutual and practical cooperation mechanism. Furthermore,
according to Article 177 of the PRC Securities Law, or Article 177, which became effective in March 2020, no overseas securities regulator
is allowed to directly conduct investigation or evidence collection activities within the territory of the PRC. While detailed interpretation
of or implementation rules under Article 177 have yet to be promulgated, the inability for an overseas securities regulator to directly
conduct investigation or evidence collection activities within China may further increase difficulties faced by our investors in protecting
their interests.

 We may be required to broaden the coverage of the mandatory social
security insurance programs under the Labor Law of the PRC.

 The PRC Labor Law, effective
January 1, 2008, requires that employers enroll in the following social security insurance programs and offer certain employer-sponsored
premium benefits to eligible employees: (1) retirement endowment, (2) healthcare insurance, (3) unemployment insurance, (4) workers'
compensation insurance, and (5) pregnancy insurance. Of these insurance programs, the retirement endowment fund requires employee withholdings
of 4% to 8% of the gross compensation, while the employer's matching contribution varies from 16% to 20% of such compensation. While
the Company is enrolled in the retirement endowment fund and is withholding employees' portion and the employer's portion
of the endowment contribution, many of the Company's employees have elected to waive their coverage under these mandatory social
security insurance programs in favor of certain other low-cost, local government-sponsored social security insurance programs for residents
in non-urban districts. Although we have verified with the local government agencies for the validity of the employee waivers and reasonably
believe that we are not required to cover the employees who waived the benefits, the local government may change its policy and ask us
to broaden our insurance coverage to those who have specifically waived their rights.

 The current tensions in international trade
and rising political tensions, particularly between U.S. and China, may adversely impact our business, financial condition, and results
of operations.

 Although cross-border business
may not be an area of our focus, if we plan to expand our business internationally in the future, any unfavorable government policies
on international trade, such as capital controls or tariffs, may affect the demand for our products and services, impact our competitive
position, or prevent us from being able to conduct business in certain countries. If any new tariffs, legislation, or regulations are
implemented, or if existing trade agreements are renegotiated, such changes could adversely affect our business, financial condition,
and results of operations. Recently, there have been heightened tensions in international economic relations, such as the one between
the United States and China. The U.S. government has recently imposed, and has recently proposed to impose additional, new, or higher
tariffs on certain products imported from China to penalize China for what it characterizes as unfair trade practices. China has responded
by imposing, and proposing to impose additional, new, or higher tariffs on certain products imported from the United States. Following
mutual retaliatory actions for months, on January 15, 2020, the United States and China entered into the Economic and Trade Agreement
between the United States of America and the People's Republic of China as a phase one trade deal, effective on February 14, 2020.

 In addition, political tensions
between the United States and China have escalated due to, among other things, trade disputes, the COVID-19 outbreak, sanctions imposed
by the U.S. Department of Treasury on certain officials of the Hong Kong Special Administrative Region and the PRC central government
and the executive orders issued by U.S. President Donald J. Trump in August 2020 that prohibit certain transactions with certain Chinese
companies and their applications. Rising political tensions could reduce levels of trades, investments, technological exchanges and other
economic activities between the two major economies, which would have a material adverse effect on global economic conditions and the
stability of global financial markets. Any of these factors could have a material adverse effect on our business, prospects, financial
condition and results of operations.

 Although the direct impact
of the current international trade tensions and political tensions between the United States and China, and any escalation of such tensions,
on the paper making industry in China is uncertain, the negative impact on general, economic, political and social conditions may adversely
impact our business, financial condition and results of operations.

 Risks Related to Our Corporate Structure

 Our current corporate structure and business operations may be
affected by the newly enacted Foreign Investment Law.

 On March 15, 2019, the National
People's Congress, China's national legislative body (the "NPC") approved the Foreign Investment Law, which became
effective on January 1, 2020. Since it is relatively new, uncertainties exist in relation to its interpretation and its implementation
rules that are yet to be issued. The Foreign Investment Law does not explicitly classify whether variable interest entities that are controlled
through contractual arrangements would be deemed as foreign-invested enterprises if they are ultimately "controlled" by foreign
investors. However, it has a catch-all provision under the definition of "foreign investment" that includes investments made
by foreign investors in China through other means as provided by laws, administrative regulations or the State Council. Therefore, it
still leaves leeway for future laws, administrative regulations or provisions of the State Council to provide for contractual arrangements
as a form of foreign investment. There can be no assurance that our control over our consolidated VIE through contractual arrangements
will not be deemed as a foreign investment in the future.

 The Foreign Investment Law
grants national treatment to foreign-invested entities, except for those foreign-invested entities that operate in industries specified
as either "restricted" or "prohibited" from foreign investment in the Special Administrative Measures for Market
Access of Foreign Investment (Negative List), which was approved by the CPC Central Committee and the State Council and issued by the
State Development and Reform Commission and the Ministry of Commerce with an effective date of July 30, 2019and renew on January 1, 2022.
The Foreign Investment Law provides that foreign-invested entities operating in "restricted" or "prohibited" industries
will require market entry clearance and other approvals from relevant PRC government authorities. If our control over our consolidated
VIE through contractual arrangements are deemed as foreign investment in the future, and any business of our consolidated VIE is considered
"restricted" or "prohibited" from foreign investment under the "negative list" effective at the time,
we may be deemed to be in violation of the Foreign Investment Law, the contractual arrangements that allow us to have control over our
consolidated VIE may be deemed as invalid and illegal, and we may be required to unwind such contractual arrangements and/or restructure
our business operations, any of which may have a material adverse effect on our business operation.

 Furthermore, if future laws,
administrative regulations or provisions mandate further actions to be taken by companies with respect to existing contractual arrangements,
we may face substantial uncertainties as to whether we can complete such actions in a timely manner, or at all. Failure to take timely
and appropriate measures to cope with any of these or similar regulatory compliance challenges could materially and adversely affect our
current corporate structure and business operations.

 Any failure by our consolidated VIE or its
shareholders to perform their obligations under our contractual arrangements with them would have a material adverse effect on our business.

 We, through our wholly foreign-owned
enterprise in the PRC, have entered into a series of contractual arrangements with our consolidated VIE and its shareholders. For a description
of these contractual arrangements, see "Overview and Corporation History." If our consolidated VIE or its shareholders fail
to perform their respective obligations under these contractual arrangements, we may incur substantial costs and expend additional resources
to enforce such arrangements. We may also have to rely on legal remedies under PRC laws, including seeking specific performance or injunctive
relief, and claiming damages, which we cannot assure you will be effective under PRC laws. For example, if the shareholders of our consolidated
VIE were to refuse to transfer their equity interests in the consolidated VIE to us or our designee when we exercise the purchase option
pursuant to these contractual arrangements, or if they were otherwise to act in bad faith toward us, then we may have to take legal actions
to compel them to perform their contractual obligations. In addition, if there are any disputes or governmental proceedings involving
any interest in such shareholders' equity interests in our VIE, our ability to exercise shareholders' rights or foreclose
the equity interest pledges according to the contractual arrangements may be impaired. If these disputes or proceedings were to impair
our control over our VIE, we may not be able to maintain effective control over our business operations in the PRC and thus would not
be able to continue to consolidate our VIE's financial results, which would in turn result in a material adverse effect on our business,
operations and financial condition.

 In order to comply with PRC regulatory requirements,
we operate our businesses through companies with which we have contractual relationships but in which we do not have controlling ownership.

 We do not have direct or
indirect equity ownership of Dongfang Paper which operates a majority of our business. Although we have entered into contractual arrangements
with Dongfang Paper and its individual owners pursuant to which we receive an economic interest in Dongfang Paper, and exert a controlling
influence over Dongfang Paper, in a manner substantially similar to a controlling equity interest, these contractual arrangements are
not as effective in providing control over Dongfang Paper as direct ownership. For example, Dongfang Paper may be unwilling or unable
to perform their contractual obligations under our commercial agreements, including payment of consulting fees under the Exclusive Technical
Service and Business Consulting Agreement as they become due. If that were to occur, we would not be able to conduct our operations in
the manner currently planned. In addition, we may not succeed in enforcing our rights under the contractual arrangements insofar as our
contractual rights and legal remedies under Chinese law may be inadequate. Furthermore, Dongfang Paper may seek to renew their agreements
on terms that are disadvantageous to us. If we are unable to renew these agreements on favorable terms when these agreements expire, or
to enter into similar agreements with other parties, we will lose control of Dongfang Paper.

 Because we rely on the consulting services agreement
with Dongfang Paper for essentially all of our revenue and cash flows, any difficulty for Dongfang Paper to pay consulting fees to Baoding
Shengde under the consulting agreement may have a material adverse effect on our operations.

 We are a holding company
and currently conduct business through Dongfang Paper in China. As a result, we rely on payments from the consulting services agreement
which forms a part of the contractual arrangements between Baoding Shengde and Dongfang Paper. Since Baoding Shengde is not a legal shareholder
of Dongfang Paper under PRC statutes, the arrangement for Dongfang Paper to pay a substantial portion of its net income to Baoding Shengde
may be challenged by the PRC government, which could prevent us from receiving required funds or making required payments to some of our
service providers.

 If the PRC government determines
that the contractual agreements constituting part of our VIE structure do not comply with applicable PRC regulations, or if these regulations
change or are interpreted differently in the future, we may be unable to assert our contractual rights over the assets of the VIE, and
our common stock may decline in value.

 Recently, the PRC government
adopted a series of regulatory actions and issued statements to regulate business operations in China, including those related to variable
interest entities. There are currently no relevant laws or regulations in the PRC that prohibit companies whose entity interests are within
the PRC from listing on overseas stock exchanges. Although we believe that our corporate structure and contractual arrangements comply
with current applicable PRC laws and regulations, in the event that PRC government determines that the contractual arrangements constituting
part of our VIE structure do not comply with PRC regulations, or if these regulations change or are interpreted differently in the future,
we may be unable to assert our contractual rights over the assets of the VIE, and our common stock may decline in value or be worthless.
Additionally, our common stock may decline in value or become worthless if we are unable to assert our contractual control rights over
the assets of our PRC Subsidiaries that conduct all or substantially all of our business operations.

 The contractual arrangements under a VIE Structure may
not be as effective as direct ownership in respect of our relationship with the VIE, and thus, we may incur substantial costs to enforce
the terms of the arrangements, which we may not be able to enforce at all.

 The contractual arrangements
may not be as effective as direct ownership in respect of our relationship with the VIE. For example, the VIE and its shareholders could
breach their contractual arrangements with us by, among other things, failing to conduct their operations in an acceptable manner or taking
other actions that are detrimental to our interests. If we had direct ownership of the VIE, we would be able to exercise our rights as
a shareholder to effect changes in the board of directors of the VIE, which in turn could implement changes, subject to any applicable
fiduciary obligations, at the management and operational level. However, under the VIE Agreements, we rely on the performance by the VIE
and its shareholders of their obligations under the contracts to exercise control over the VIE. The shareholders of the consolidated VIE
may not act in the best interests of our company or may not perform their obligations under these contracts. Such risks exist throughout
the period in which we intend to operate certain portions of our business through the contractual arrangements with the VIE.

 If the VIE or its shareholders
fail to perform their respective obligations under the contractual arrangements, we may have to incur substantial costs and expend additional
resources to enforce such arrangements. For example, if the shareholders of the VIE refuse to transfer their equity interest in the VIE
to us or our designee if we exercise the purchase option pursuant to the contractual arrangements, or if they otherwise act in bad faith
toward us, then we may have to take legal actions to compel them to perform their contractual obligations. In addition, if any third parties
claim any interest in such shareholders' equity interests in the VIE, our ability to exercise shareholders' rights or foreclose
the share pledge according to the contractual arrangements may be impaired. If these or other disputes between the shareholders of the
VIE and third parties were to impair our relationship with the VIE, our ability to consolidate the financial results of the VIE would
be affected, which would in turn result in a material adverse effect on the business, operations and financial condition.

 The shareholders of Dongfang Paper may have actual or potential
conflicts of interests with us, which may adversely affect our business.

 As of the date of this annual
report, we are not aware of any conflicts between the shareholders of the VIE and IT Tech Packaging. However, the shareholders of Dongfang
Paper, the VIE, may have actual or potential conflicts of interest with IT Tech Packaging in the future. These shareholders may refuse
to sign or breach, or cause the VIE to breach, or refuse to renew, the existing contractual arrangements IT Tech Packaging has with them
and the VIE, which would have a material and adverse effect on IT Tech Packaging' ability to effectively control the VIE and receive
economic benefits from them. For example, the shareholders may be able to cause IT Tech' agreements with the VIE to be performed
in a manner adverse to IT Tech Packaging by, among other things, failing to remit payments due under the contractual arrangements to IT
Tech Packaging on a timely basis. We cannot assure you that when conflicts of interest arise any or all of these shareholders will act
in the best interests of IT Tech Packaging or such conflicts will be resolved in IT Tech Packaging's favor. Currently, IT Tech Packaging
does not have any arrangements to address potential conflicts of interest between these shareholders and IT Tech Packaging. If we cannot
resolve any conflict of interest or dispute between IT Tech Packaging and these shareholders, IT Tech Packaging would have to rely on
legal proceedings, which could result in disruption of IT Tech Packaging's business and subject IT Tech Packaging to substantial
uncertainty as to the outcome of any such legal proceedings.

 Our Chairman, Chief Executive
Officer and 5.3% shareholder, Zhenyong Liu, owns 100% of the equity interest in Dongfang Paper. Conflicts of interests between his duties
to IT Tech and to Dongfang Paper may arise. We cannot assure you that when conflicts of interest arise, he will act in the best interests
of IT Tech or that any conflict of interest will be resolved in our favor. These conflicts may result in management decisions that could
negatively affect our operations and potentially result in the loss of opportunities.

 We may lose the ability to use and enjoy
assets held by the VIE that are material to the operation of its business if the entity goes bankrupt or becomes subject to a dissolution
or liquidation proceeding.

 As part of our contractual
arrangements with the VIE, the entity holds certain assets that are material to the operation of our business, including permits, domain
names and IP rights. If the VIE goes bankrupt and all or part of its assets become subject to liens or rights of third-party creditors,
we may be unable to continue some or all of its business activities, which could adversely affect our business, financial condition and
results of operations. Under the contractual arrangements, the VIE may not, in any manner, sell, transfer, mortgage or dispose of its
assets or legal or beneficial interests in the business without our prior consent. If the VIE undergoes a voluntary or involuntary liquidation
proceeding, the independent third party creditors may claim rights to some or all of these assets, thereby hindering our ability to operate
our business, which could adversely affect our business, financial condition and results of operations.

 Our arrangements with Dongfang Paper and
its shareholders may be subject to a transfer pricing adjustment by the PRC tax authorities which could have an adverse effect on our
income and expenses.

 We could face material and
adverse tax consequences if the PRC tax authorities determine that our contracts with Dongfang Paper and its shareholders were not entered
into based on arm's length negotiations. If the PRC tax authorities determine that these contracts were not entered into on an arm's
length basis, they may adjust our income and expenses for PRC tax purposes in the form of a transfer pricing adjustment. Such an adjustment
may require that we pay additional PRC taxes plus applicable penalties and interest, if any.

 We may lose the ability to use, or otherwise
benefit from, the licenses, approvals and assets held by the VIE, which could severely disrupt our business, render us unable to conduct
some of our business operations and constrain our growth.

 IT Tech Packaging relies
on contractual arrangements with the VIE to use, or otherwise benefit from, certain foreign restricted licenses and permits that it needs
or may need in the future as its business continues to expand. The contractual arrangements contain terms that specifically obligate the
VIE's shareholders to ensure the valid existence of the VIE and restrict the disposal of material assets of the VIE. However, in
the event the VIE's shareholders breach the terms of these contractual arrangements and voluntarily liquidate the VIE, or the VIE
declares bankruptcy and all or part of its assets become subject to liens or rights of third-party creditors, or is otherwise disposed
of without IT Tech's consent, IT Tech may be unable to conduct its business operations or otherwise benefit from the assets held
by the VIE, which could have an adverse effect on IT Tech's business, financial condition and results of operations. Furthermore,
if the VIE undergoes a voluntary or involuntary liquidation proceeding, its shareholders or unrelated third-party creditors may claim
rights to some or all of the assets of the VIE, thereby hindering IT Tech's ability to operate its business.

 The exercise of our option to purchase part
or all of the equity interests in Dongfang Paper under the Call Option Agreement might be subject to approval by the PRC government. Our
failure to obtain this approval may impair our ability to substantially control Dongfang Paper and could result in actions by Dongfang
Paper that conflict with our interests.

 Our Call Option Agreement
with Dongfang Paper and its shareholders gives our Chinese subsidiary, Baoding Shengde or its designated entity or natural person, the
option to purchase all or part of the equity interests in Dongfang Paper. The option may not be exercised by Baoding Shengde if the exercise
would violate any applicable laws and regulations in China or cause any license or permit held by, and necessary for the operation of
Dongfang Paper, to be cancelled or invalidated. Under the laws of China, if a foreign entity, through a foreign investment company that
it invests in, acquires a domestic related company, China's regulations regarding mergers and acquisitions may technically apply
to the transaction. If these regulations apply, an examination and approval of the transaction by China's Ministry of Commerce ("MOFCOM"),
or its local counterparts would be required. In addition, an appraisal of the equity interest or the assets to be acquired would also
be mandatory. Since the scope of business activities (making of cultural paper products) as defined in the business license of Baoding
Shengde does not involve the MOFCOM approval and monitoring, we do not believe at this time that an approval or an appraisal is required
for Baoding Shengde to exercise its option to acquire Dongfang Paper. In light of the different views on this issue, however, it is possible
that the central MOFCOM office in Beijing will issue a standardized opinion imposing the approval and appraisal requirement. If we are
not able to purchase the equity of Dongfang Paper, then we will lose a substantial portion of our ability to control Dongfang Paper and
our ability to ensure that Dongfang Paper will act in our interests.

 Risks Related to Our Common Stock

 Our common stock may be delisted from the
NYSE American under the Holding Foreign Companies Accountable Act if the PCAOB is unable to adequately inspect audit documentation located
in China. The delisting of our common stock, or the threat of their being delisted, may materially and adversely affect the value of your
investment.

 The HFCAA, was enacted on
December 18, 2020. The HFCAA states if the SEC determines that a company has filed audit reports issued by a registered public accounting
firm that has not been subject to inspection by the PCAOB for three consecutive years beginning in 2021, the SEC shall prohibit such ordinary
shares from being traded on a national securities exchange or in the over the counter trading market in the U.S.

 On March 24, 2021, the SEC
adopted interim final rules relating to the implementation of certain disclosure and documentation requirements of the HFCAA. A company
will be required to comply with these rules if the SEC identifies it as having a "non-inspection" year under a process to
be subsequently established by the SEC. The SEC is assessing how to implement other requirements of the HFCAA, including the listing and
trading prohibition requirements described above. Furthermore, on June 22, 2021, the U.S. Senate passed the Accelerating Holding Foreign
Companies Accountable Act, which was signed into law on December 29, 2022 amends the HFCAA and requires the SEC to prohibit an issuer's
securities from trading on any U.S. stock exchanges if its auditor is not subject to PCAOB inspections for two consecutive years instead
of three. On September 22, 2021, the PCAOB adopted a final rule implementing the HFCAA, which provides a framework for the PCAOB to use
when determining, as contemplated under the HFCAA Act, whether the PCAOB is unable to inspect or investigate completely registered public
accounting firms located in a foreign jurisdiction because of a position taken by one or more authorities in that jurisdiction. On December
2, 2021, the SEC issued amendments to finalize the interim final rules previously adopted in March 2021 to implement the submission and
disclosure requirements in the HFCAA. The rules apply to registrants that the SEC identifies as having filed an annual report with an
audit report issued by a registered public accounting firm that is located in a foreign jurisdiction and that the PCAOB is unable to inspect
or investigate completely because of a position taken by an authority in a foreign jurisdiction. On December 16, 2021, the PCAOB issued
a Determination Report which found that the PCAOB is unable to inspect or investigate completely registered public accounting firms headquartered
in: (1) mainland China of the PRC, because of a position taken by one or more authorities in mainland China; and (2) Hong Kong, a Special
Administrative Region and dependency of the PRC, because of a position taken by one or more authorities in Hong Kong. The PCAOB has made
such designations as mandated under the HFCAA. Pursuant to each annual determination by the PCAOB, the SEC will, on an annual basis, identify
issuers that have used non-inspected audit firms and thus are at risk of such suspensions in the future. On August 26, 2022, the PCAOB
signed the Protocol with the CSRC and the MOF of the People's Republic of China, governing inspections and investigations of audit
firms based in mainland China and Hong Kong. The Protocol remains unpublished and is subject to further explanation and implementation.
Pursuant to the fact sheet with respect to the Protocol disclosed by the SEC, the PCAOB shall have independent discretion to select any
issuer audits for inspection or investigation and the unfettered ability to transfer information to the SEC. On December 15, 2022, the
PCAOB announced that it was able to secure complete access to inspect and investigate PCAOB-registered public accounting firms headquartered
in China mainland and Hong Kong completely in 2022. The PCAOB Board vacated its previous 2021 determinations that the PCAOB was unable
to inspect or investigate completely registered public accounting firms headquartered in China mainland and Hong Kong. However, whether
the PCAOB will continue to be able to satisfactorily conduct inspections of PCAOB-registered public accounting firms headquartered in
China mainland and Hong Kong is subject to uncertainty and depends on a number of factors out of our, and our auditor's, control.
The PCAOB is continuing to demand complete access in China mainland and Hong Kong moving forward and is already making plans to resume
regular inspections in early 2023 and beyond, as well as to continue pursuing ongoing investigations and initiate new investigations as
needed. The PCAOB has indicated that it will act immediately to consider the need to issue new determinations with the HFCAA if needed.
Therefore, the PCAOB may in the future determine that it is unable to inspect or investigate completely registered public accounting firms
in mainland China and Hong Kong.

 Our auditor, GGF CPA Limited
, the independent registered public accounting firm that issued the audit report included in our annual report, an auditor of companies
that are traded publicly in the United States and a China-based accounting firm registered with the PCAOB, is subject to laws in the United
States pursuant to which the PCAOB conducts regular inspections to assess its compliance with the applicable professional standards.

 However, our auditor's
working papers related to us and the consolidated VIE and its subsidiary are located in China. If our auditor is not permitted to provide
requested audit work papers located in China to the PCAOB, investors would be deprived of the benefits of PCAOB's oversight of our
auditor through such inspections which could result in limitation or restriction to our access to the U.S. capital markets, and trading
of our securities may be prohibited under the HFCAA, which would result in the delisting of our securities from the NYSE American.

 If we fail to comply with Section 404 of
the Sarbanes-Oxley Act of 2002 in a timely manner, our business could be harmed and our stock price could decline.

 Rules adopted by the SEC
pursuant to Section 404 of the Sarbanes-Oxley Act of 2002 require annual assessment of U.S. public companies' internal control over
financial reporting. The standards that must be met for management to assess the internal control over financial reporting as effective
are complex, and require significant documentation, testing and possible remediation to meet the detailed standards. While we have not
detected any significant deficiency or material weakness in our internal control and with respect to the assessment of the internal control
for the year ended December 31, 2023, we cannot guarantee the implementation of controls and procedures in future years to be without
any significant deficiency or material weakness.

 If we become directly subject to the scrutiny
involving U.S. listed Chinese companies, we may have to expend significant resources to investigate and/or defend the matter, which could
harm our business operations, stock price and reputation.

 U.S. public companies that
have substantially all of their operations in China have been the subject of intense scrutiny by investors, financial commentators and
regulatory agencies. Much of the scrutiny has centered around financial and accounting irregularities and mistakes, a lack of effective
internal controls over financial reporting and, in many cases, allegations of fraud. As a result of the scrutiny, the publicly traded
stock of many U.S. listed China-based companies that have been the subject of such scrutiny has sharply decreased in value. Many of these
companies are now subject to shareholder lawsuits and/or SEC enforcement actions that are conducting internal and/or external investigations
into the allegations. If we become the subject of any such scrutiny, whether any allegations are true or not, we may have to expend significant
resources to investigate such allegations and/or defend our company. Such investigations or allegations will be costly and time-consuming
and distract our management from our business plan and could result in our reputation being harmed and our stock price could decline as
a result of such allegations, regardless of the truthfulness of the allegations.

 Our officers and directors control us through their positions
and stock ownership and their interests may differ from other stockholders.

 As of March 27, 2024, there
were 10,065,920 shares of our common stock issued and outstanding. Mr. Zhenyong Liu, our Chief Executive Officer, beneficially owns approximately
5.3% of our common stock. As a result, he is able to influence the outcome of stockholder votes on various matters, including the election
of directors and extraordinary corporate transactions including business combinations. Yet Mr. Liu's interests may differ from those
of other stockholders. Furthermore, ownership of 5.3% of our common stock by Mr. Liu reduces the public float and liquidity, and may affect
the market price, of our common stock as traded on the NYSE American.

 We may not continue to pay cash dividends and any return on investment
may be limited to the value of our common stock.

 While we intend to retain
the majority of any future earnings for use in the operation and expansion of our business, we did declare four quarterly cash dividends
in April 2012 and November 2013. Although it is likely that our Board of Directors will continue the quarterly cash dividend as a regular
dividend policy in the coming years, there is no guarantee that the cash dividend will not be discontinued or reduced. Should we decide
to continue the cash dividend, as a holding company, our ability to pay dividends and meet other obligations depends upon the receipt
of dividends or other payments from our operating subsidiaries. In addition, our operating subsidiaries, from time to time, may be subject
to restrictions on their ability to make distributions to us, including restrictions on the conversion of local currency into U.S. dollars
or other hard currency and other regulatory restrictions.

 Our common stock may be affected by limited trading volume and
may fluctuate significantly.

 Our common stock is traded
on the NYSE American. Although a trading market has developed for our common stock, there can be no assurance that the trading market
for our common stock will be sustained. Failure to maintain a trading market for our common stock may adversely affect our shareholders'
ability to sell our common stock in short time periods, or at all. Our common stock has experienced, and may experience in the future,
significant price and volume fluctuations, which could adversely affect the market price of our common stock.

 Future financings may dilute stockholders or impair our financial
condition.

 In the future, we may need
to raise additional funds through public or private financing, which might include the sale of equity securities. The issuance of equity
securities could result in financial and voting dilution to our existing stockholders. The issuance of debt could result in effective
subordination of stockholders' interests to the debt, create the possibility of default, and limit our financial and business alternatives.

 Item 1B. Unresolved Staff Comments

 Not applicable.

 Item 1C. Cybersecurity.

 We face risks associated with
cybersecurity. For additional details on risks from cybersecurity threats, please refer to "Item 1A. Risk Factors - The occurrence
of security breaches and cyber-attacks could negatively impact our business." and "- Our business may be subject to
a variety of PRC laws and other obligations regarding cybersecurity and data protection."

 The purpose of our cybersecurity
program is to assess, identify, manage and mitigate cybersecurity risk while supporting the achievement of our business objectives. Under
our comprehensive risk management program, the Board of Directors of the Company maintains oversight of the most significant risks facing
the Company, including cybersecurity risks, while senior management is responsible for the identification and prioritization of risks
that are material to our business, corresponding risk-mitigation efforts and day-to-day management of our risk management program. The
full Board of Directors retains oversight over management's cybersecurity efforts. At least annually, and often more frequently,
our Board of Directors receives cybersecurity briefings from senior executives, including, when appropriate, executives focused on cybersecurity
matters.

 Our companywide cybersecurity
policy sets the framework for our approach to cybersecurity. Each business unit and our corporate headquarters designates individuals
with appropriate qualifications and experience to be responsible for addressing cybersecurity matters, including assessing, identifying
and managing risks from cybersecurity threats, with a direct reporting line to senior management. Under our approach to cybersecurity,
each business unit designs and operates its own information and cybersecurity program tailored to its market, customer requirements, regulatory
requirements and threats. Our cybersecurity policy and procedures are designed to ensure senior management receives timely and adequate
information regarding cybersecurity matters, including threats and incident response, as appropriate to the matter. Our policies and procedures
are also designed to oversee and identify material cybersecurity risks related to third-party vendors and service providers.

 As part of our approach to
cyber risk management, we regularly perform internal audits of internal processes and controls relating to cybersecurity. From time to
time, as appropriate under our overall cybersecurity program, we engage third-party experts to support the assessment of cyber related
risks, including to conduct cyber penetration testing.

 To its knowledge, the Company
has not experienced a material cybersecurity breach within the last three years, nor identified any risks from cybersecurity threats that
have materially affected us, including our business strategy, results of operations or financial condition.

 Item 2. Properties

 Our headquarters are located
at Hebei Baoding Dongfang Paper Milling Company Limited, Juli Road, Xushui District, Baoding City, Hebei Province, China. We have two
main production bases, one production base located approximately 4 kilometers away from our headquarters, and the second production base
located in Wei County, Xingtai City, Hebei Province.

 All land in the PRC is owned
by the government and cannot be sold to any individual or entity. Instead, the government grants landholders a "land use right"
after a purchase price for such "land use right" is paid to the government. The "land use right" allows the holder
the right to use the land for a specified long-term period of time and enjoys all the incidents of ownership of the land. The following
are the details regarding Dongfang Paper's land use rights with regard to the land that it uses in its business.

 The land of our first production
base (the "Xushui Paper Mill"), comprising 200 mu, or approximately 33 acres, of land, is leased from the local government
pursuant to a 30 year lease that expires December 31, 2031. The lease requires an annual payment of approximately $ 17,406 (RMB 120,000)
due by June 30 every year.

 The land of the second production
base (the "Xingtai Paper Mill"), comprising 300 mu, or approximately 50 acres, of land, is owned by Hebei Tengsheng Paper
Co., Ltd., a limited liability company organized under the laws of the PRC. ("Tengsheng Paper"). On June 25, 2019, Dongfang
Paper entered into an acquisition agreement with the shareholder of Hebei Tengsheng Paper Co., Ltd., pursuant to which Dongfang Paper
agreed to acquire Tengsheng Paper for the consideration in the amount of RMB 320 million (approximately $45 million) which was fully paid
on February 23, 2022.

 The office building and
essentially all industrial-use buildings at our headquarters (the "Industrial Buildings") are leased to us by a third party,
Hebei Fangsheng Real Estate Development Co. Ltd. ("Hebei Fangsheng"), for a term of up to three years starting August 2013,
with an annual rental payment of approximately $155,101 (RMB1,000,000). The lease agreement expired in August 2016. The lease agreement
was renewed in August 2022 with a term of six years with the same rental payments as provided for in the original lease agreement., with
the same rental payment as original lease agreement."

 In the spring of 2010, we
initiated the process of acquiring approximately 667,000 square meters of land adjacent to our first production base, Xushui Paper Mill
and subsequently received governmental approval for our capacity expansion plan. On April 13, 2012, we closed our acquisition of 58,566
square meters of land and secured all associated land use right permits (the "Xushui Mill Annex"). For land acquisition of
the Xushui Mill Annex, we paid a total of $7.5 million for various payments of compensation, taxes, and recording fees to the sellers
and the local government. On October 26, 2012, we made a prepayment in the amount of $1,404,460 for the purchase of land use right from
the local residents' council for approximately 65,023 square meters of land located inside of our Xushui Paper Mill. In December
2016, the Company completed the purchase of such land use right, with a land use term of 50 years expiring in 2066.

our facilities include a total of nine production lines, among which PM7 is currently idle and under renovation, and each PM4 and PM5
(both for digital photo paper) has been suspended, nine warehouses, two office buildings, two cafeterias, and five dormitories.

 Item 3. Legal Proceedings

 We may from time to time
become a party to various legal or administrative proceedings arising in the ordinary course of our business. We are currently not a party
to any legal or administrative proceedings and are not aware of any pending or threatened legal or administrative proceedings against
us in all material aspects other than the following:

 In February 17, 2022, FT
Global Capital, Inc. ("FTG"), filed a lawsuit against the Company in the Commercial Division of New York Supreme Court. FTG
has brought a breach of contract action against the Company to recover fees in connection with an agreement that the parties entered into
in April 2019 (the "Agreement"). The Company has answered FTG's complaint and has denied the allegations because it
is the Company's position that FTG did not fulfill its obligations under the terms of the Agreement. Discovery is continuing.

 The ultimate resolution
of the proceedings may have a material adverse impact on our business, financial condition, results of operations or cash flows. Failure
to settle the proceedings or other unfavorable outcomes in this proceedings could result in significant damages, additional penalties
or other remedies imposed against the Company. Litigation of this kind could result in substantial costs and a diversion of our management's
attention and resources. It could also result in our reputation being harmed and our stock price could decline as a result of allegations
made in the course of the proceedings, regardless of the truthfulness of the allegations.

 Item 4. Mine Safety Disclosures

 Not Applicable.

 Item 5. Market for Registrant's Common Equity, Related
Stockholder Matters and Issuer Purchases of Equity Securities

 Market Information

 IT Tech Packaging's common stock is traded on the NYSE
American under the symbol "ITP".

 Holders

 As of March 27, 2024, we
had approximately 11,000 shareholders of record of our common stock.

 Dividends

 On November 21, 2013, the Company declared another
quarterly dividend of $0.005 per share to shareholders of record as of November 29, 2013.

 The dividend was paid on December 10, 2013. Total dividends declared
and paid for the year ended December 31, 2013 were $323,032.

 We do not expect to pay
dividends in the near future. Future declaration of dividends will depend on, among other things, the Company's results of operations,
capital requirements, financial condition and on such other factors as the Company's Board of Directors may in its discretion consider
relevant and in the best long term interest of the shareholders.

 Equity Compensation Plan Information

 2021 Incentive Stock Plan

 On November 12, 2021, the
Company's Annual General Meeting adopted and approved the 2021 Omnibus Equity Incentive Plan of IT Tech Packaging, Inc.(the"2021
Plan"). Under the 2021 ISP, the Company has reserved a total of 150,000 shares of common stock for issuance as or under awards to
be made to the directors, officers, employees and/or consultants of the Company and its subsidiaries.

 All shares of common stock
under the 2021 ISP, including shares originally authorized by equity holders and shares remaining for future issuance as of December 31,
2022, have been issued.

 2023 Incentive Stock Plan

 On October 31, 2023, the
Company's Annual General Meeting adopted and approved the 2023 Omnibus Equity Incentive Plan of IT Tech Packaging, Inc.(the"2023
Plan"). Under the 2023 ISP, the Company has reserved a total of 1,500,000 shares of common stock for issuance as or under awards
to be made to the directors, officers, employees and/or consultants of the Company and its subsidiaries.

 All shares of common stock
under the 2023 ISP, including shares originally authorized by equity holders and shares remaining for future issuance as of December 31,
2023, have been reserved.

 Equity Compensation Plan

 The following table provides information as of December 31,
2023 about our equity compensation plan and arrangements:

 Plan category

 Number
of

 securities to

 be issued upon

 exercise

 of outstanding

 options

 and restricted

 stock units

 Weighted-

average
 exercise price

of

outstanding

options,

and restricted

 stock units

 Number of

 securities

 remaining

 available for

 future

 issuance

 under equity

 compensation

 plans

 Equity compensation plans approved by security holders

 -

 $
 -

 -

 Equity compensation plans not approved by security holders

 -

 -

 -

 Total

 $

 Recent Sales of Unregistered Securities

 None.

 Purchases of Equity Securities by the Issuer and Affiliated Purchasers

 None.

 Item 6. [Reserved]

 Item 7. Management's Discussion and Analysis of Financial
Condition and Results of Operations

 The following discussion
of the financial condition and results of operations of the Company should be read in conjunction with the selected financial data, the
financial statements, and the notes to those statements that are included elsewhere in this annual report. This discussion contains forward-looking
statements that involve risks and uncertainties. For a complete discussion of forward-looking statements,
see the section in this report entitled "Forward-Looking Statements." Certain risk factors may cause our actual results, performance
or achievements to differ materially from those expressed or implied by the following discussion. For a discussion of such risk factors,
see the sections in this report entitled "Risk Factors" and "Forward-Looking Statements". Our historical
results are not necessarily indicative of the results that may be expected for any period in the future.

 Results of Operations

 Revenue for the year ended
December 31, 2023 was $86,546,950, representing a decrease of $13,805,484, or 13.76%, from $100,352,434 for the previous year. This was
mainly due to the decrease in average selling price ("ASP") of CMP.

 Revenue of Offset Printing Paper, Corrugating Medium Paper and Tissue
Paper Products

 Revenue from sales of offset
printing paper, CMP and tissue paper products for the year ended December 31, 2023 was $86,412,058, a decrease of $13,669,606, or 13.66%,
from $100,081,664 for the year ended December 31, 2022. This was mainly due to the decrease in ASP of CMP, partially offset by increase
in sales volume of regular CMP, light-weight CMP and offset printing paper.

 Total quantities of offset
printing paper, CMP and tissue paper products sold during the year ended December 31, 2023 amounted to 230,601 tonnes, an increase of
10,997 tonnes, or 5.01%, compared to 219,604 tonnes sold during the year ended December 31, 2022. Total quantities of CMP and offset printing
paper sold increased by 11,065 tonnes in the year of 2023 as compared to 2022. We sold 1,205 tonnes of tissue paper products in the year
of 2023 as opposed to 1,273 tonnes in 2022. Production of offset printing paper was resumed in May 2023. The changes in revenue and quantity
sold for the year ended December 31, 2023 and 2022 are summarized as follows:

 December 31, 2023

 December 31, 2022

 Change in

 Percentage Change

 Quantity (Tonne)

 Quantity (Tonne)

 Quantity (Tonne)

 Quantity

 Sales Revenue

 Regular CMP

 182,870

 $
 67,371,471

 180,977

 $
 82,297,055

 1,893

 $
 (14,925,584
)

 1.05
 %

 -18.14
 %

 Light-Weight CMP

 40,953

 $
 14,520,205

 37,354

 $
 16,428,354

 3,599

 $
 (1,908,149
)

 9.63
 %

 -11.61
 %

 Total CMP

 223,823

 $
 81,891,676

 218,331

 $
 98,725,409

 5,492

 $
 (16,833,733
)

 2.52
 %

 -17.05
 %

 Offset Printing Paper

 5,573

 $
 3,215,190

 -

 $
 -

 5,573

 $
 3,215,190

 -
 %

 -
 %

 Tissue Paper Products

 1,205

 $
 1,305,192

 1,273

 $
 1,356,255

 (68
)

 $
 (51,063
)

 -5.34
 %

 -3.76
 %

 Total CMP, Offset Printing Paper and Tissue Paper Revenue

 230,601

 $
 86,412,058

 219,604

 $
 100,081,664

 10,997

 $
 (13,669,606
)

 5.01 %

 -13.66
 %

 Monthly revenue (excluding revenue of digital
photo paper and tissue paper products) for the 24 months ended December 31, 2023, are summarized below:

 The average selling price, or ASP, for our major products
for the years ended December 31, 2023 and 2022 are summarized as follows:

 Offset

 Printing

 Paper ASP

 Regular

 CMP ASP

 Light-

Weight

 CMP ASP

 Tissue Paper

 Products

 ASP

 Year Ended December 31, 2023

 $

 $

 $

 $
 1083

 Year Ended December 31, 2022

 $
 -

 $

 $

 $
 1065

 Increase (Decrease) from comparable period in the previous year

 $

 $
 (87
)

 $
 (85
)

 $

 Increase (Decrease) by percentage

 -
 %

 -19.12
 %

 -19.32
 %

 1.69
 %

 The following is a chart showing the month-by-month ASPs for
the 24 month period ended December 31, 2023:

 Corrugating Medium Paper

 Revenue from CMP amounted
to $81,891,676 (94.77% of the total offset printing paper, CMP and tissue paper products revenues) for the year ended December 31, 2023,
representing a decrease of $16,833,733, or 17.05%, from $98,725,409 during 2022.

 We sold 223,823 tonnes of
CMP in the year ended December 31, 2023 as compared to 218,331 tonnes in the year ended December 31, 2022, representing a 2.52% increase
in quantity sold.

 ASP for regular CMP dropped
from $455/tonne in 2022 to $368/tonne in 2023, representing a 19.12% decrease. ASP in RMB for regular CMP in 2022 and 2023 was RMB3,073
and RMB2,599, respectively, representing a 15.42% decrease. The quantity of regular CMP sold increased by 1,893 tonnes, from 180,977 tonnes
in 2022 to 182,870 tonnes in 2023.

 ASP for light-weight CMP
dropped from $440/tonne in 2022 to $355/tonne in 2023, representing a $19.32% decrease. ASP in RMB for light-weight CMP in 2022 and 2023
was RMB2,972 and RMB2,502, respectively, representing a 15.82% decrease. The quantity of light-weight CMP sold increased by 3,599 tonnes,
from 37,354 tonnes in 2022, to 40,953 tonnes in 2023.

 Our PM6 production line,
which produces regular CMP, has a designated capacity of 360,000 tonnes /year. The utilization rates for the year ended December 31, 2023
and 2022 were 51.98% and 49.28%, respectively, representing an increase of 2.70%.

 Quantities sold for regular
CMP that was produced by the PM6 production line from January 2022 to December 2023 are as follows:

 Offset Printing Paper

 Revenue from offset
printing paper was $3,215,190 (3.72% of the total offset printing paper, CMP and tissue paper products revenues) for the year ended December
31, 2023, representing an increase of $3,215,190, or 100%, from year of 2022. We sold 5,573 tonnes of offset printing paper in the year
ended December 31, 2023.

 Tissue Paper Products

 Revenue from tissue paper
products was $1,305,192 (1.51% of the total offset printing paper, CMP and tissue paper products revenues) for the year ended December
31, 2023, representing a decrease of $51,063, or 3.76%, from $1,356,255 in 2022. We sold 1,205 tonnes of tissue paper products in the
year ended December 31, 2023, as compared to 1,273 tonnes in 2022, a decrease of 68 tonnes, or 5.34%.

 ASP for tissue paper products
was $1,065/tonne and $1,083/tonne in the year ended December 31, 2022 and 2023, respectively, representing a 1.69% increase. ASP in RMB
for tissue paper products for the year ended 2022 and 2023 was RMB7,198 and RMB7,640, respectively, representing a 6.14% increase.

 Revenue of Face Mask

 Revenue generated from selling
face masks were $106,064 and $257,820 for the year ended December 31, 2023 and 2022. We sold 3,383 thousand pieces of face masks in 2023,
as compared to 5,625 thousand pieces in 2022, a decrease of 2,242 thousand pieces, or 39.86%.

 Cost of Sales

 Total cost of sales for CMP, offset printing paper
and tissue paper products in the year ended December 31, 2023 was $85,418,822, a decrease of $9,965,512, or 10.45%, from $95,384,334 for
the year ended December 31, 2022. This was mainly due to the decrease of material costs of CMP.

 Cost of sales for CMP was $77,962,837 for the
year ended December 31, 2023, as compared to $91,093,891 in 2022. The decrease in the cost of sales of $13,131,054 for CMP was mainly
due to the decrease in average cost of sales, partially offset by the increase in the quantities of regular CMP sold in the year of 2023.
Average cost of sales per tonne for CMP decreased by 16.55%, from $417 for the year ended December 31, 2022, to $348 in 2023. This was
mainly attributable to the lower average unit purchase costs (net of applicable value added tax) of recycled paper board.

 Cost of sales for offset printing paper was $3,134,832
for the year ended December 31, 2023.

 Cost of sales for tissue paper products was $4,318,339
for the year ended December 31, 2023, as compared to $4,290,443 in 2022. Average cost of sales per tonne of tissue paper products increased
by 6.35%, from $3,370 for the year ended December 31, 2022, to $3,584 for 2023.

 Changes in cost of sales and cost per tonne by product for
the year ended December 31, 2023 and 2022 are summarized below:

 Year
 Ended
 December 31, 2023

 Year
 Ended
 December 31, 2022

 Change
 in

 Change
 in percentage

 Cost
 of

 Sales

 Cost per

 Tonne

 Cost
 of

 Sales

 Cost per

 tonne

 Cost
 of

 Sales

 Cost per

 Tonne

 Cost
 of

 Sales

 Cost
 per

 Tone

 Regular
 CMP

 $
 63,818,509

 $

 $
 76,213,404

 $

 $
 (12,394,895
)

 $
 (72
)

 -16.26
 %

 -17.10
 %

 Light-Weight
 CMP

 $
 14,144,328

 $

 $
 14,880,487

 $

 $
 (736,159
)

 $
 (53
)

 -4.95
 %

 -13.32
 %

 Total
 CMP

 $
 77,962,837

 $

 $
 91,093,891

 $

 $
 (13,131,054
)

 $
 (69
)

 -14.41
 %

 -16.55
 %

 Offset
 Printing Paper

 $
 3,137,646

 $

 $
 -

 $
 -

 $
 3,137,646

 $

 -
 %

 0.00
 %

 Tissue
 Paper Products

 $
 4,318,339

 $
 3,584

 $
 4,290,443

 $
 3,370

 $
 27,896

 $

 0.65
 %

 6.35
 %

 Total
 CMP, Offset Printing Paper and Tissue Paper Revenue

 $
 85,418,822

 $
 n/a

 $
 95,384,334

 $
 n/a

 $
 (9,965,512
)

 $
 n/a

 -10.45
 %

 n/a
 %

 Our average unit purchase
costs (net of applicable value added tax) of recycled paper board and recycled white scrap paper for the year ended December 31, 2023
were RMB 1,350/tonne (approximately $191/tonne) as compared to RMB 1,690/tonne (approximately $250/tonne) for the year ended December
31, 2022. These changes (in US dollars) represent a year-over-year decrease of 23.60% for the unit purchase cost of recycled paper board.
We use domestic recycled paper (sourced mainly from the Beijing-Tianjin metropolitan area) exclusively. Although we do not rely on imported
recycled paper, the pricing of which tends to be more volatile than domestic recycled paper, our experience suggests that the pricing
of domestic recycled paper bears some correlation to the pricing of imported recycled paper.

 The pricing trends of our major raw materials for the 24-month
period from January 2022 to December 2023 are shown below:

 Electricity and gas are
our two main energy sources. Electricity and gas accounted for approximately 5% and 15.3% of total sales in 2023, respectively, compared
to 4% and 12.4% of total sales 2022. The monthly energy cost (electricity and gas) as a percentage of total monthly sales of our main
paper products for the 24 months ended December 31, 2023are summarized as follows:

 Gross Profit

 Gross profit for December
31, 2023 was $999,885 (representing 1.16% of the total revenue), representing a decrease of $3,754,311, or 78.97%, from the gross profit
of $4,754,196 (representing 4.74% of the total revenue) for the year ended December 31, 2022. The decrease was mainly due to the decrease
in ASP of CMP, partially offset by the decrease of material costs of CMP, and (ii) the increase in material costs of tissue paper products.

 Corrugating Medium Paper, Offset Printing Paper and Tissue Paper
Products

 Gross profit for offset
printing paper, CMP and tissue paper products for the year ended December 31, 2023 was $993,236, a decrease of $3,704,094, or 78.86%,
from the gross profit of $4,697,330 for the year ended December 31, 2022. The decrease was mainly the result of the factors discussed
above.

 The overall gross profit
margin for offset printing paper, CMP and tissue paper products decreased by 3.54 percentage points, from 4.69% for the year ended December
31, 2022, to 1.15 for the year ended December 31, 2023.

 Gross profit margin for
regular CMP for the year ended December 31, 2023 was 5.27%, or 2.12 percentage points lower, as compared to gross profit margin of 7.39%
for the year ended December 31, 2022. Such decrease was primarily due to the decrease in ASP of regular CMP, partially offset by the decrease
in material costs.

 Gross profit margin for
light-weight CMP for the year ended December 31, 2023 was 2.59%, or 6.83 percentage points lower, as compared to gross profit margin of
9.42% for the year ended December 31, 2022. Such decrease was primarily due to the decrease in ASP of light-weight CMP, partially offset
by the decrease in material costs.

 Gross profit margin for
offset printing paper was 2.41% for the year ended December 31, 2023.

 Gross profit margin for
tissue paper products was -230.86% for the year ended December 31, 2023, a decrease of 14.52 percentage points, as compared to -216.34%
for the year ended December 31, 2022. The decrease was mainly due to the increase in cost of tissue base paper.

 Monthly gross profit margins
for our corrugating medium paper and offset printing paper for the 24-month period ended December 31, 2023 are as follows:

 Face Masks

 Gross loss for face mask
for the year ended December 31, 2023 was $11,127, representing a gross margin of -10.49% compared with a gross profit of $67,328, representing
a gross margin of 26.11%, for the year ended December 31, 2022.

 Selling, General and Administrative Expenses

 Selling, general and administrative
expenses for the year ended December 31, 2023 were $9,075,475, a decrease of $983,248, or 9.78% from $10,058,723 for the year ended December
31, 2022. The decrease was mainly due to the decrease in depreciation of idle fixed assets during production suspension.

 Loss from Operations

 Operating loss for
the year ended December 31, 2023 was $9,575,888, a decrease of $4,271,361, or 80.52%, from $5,304,527 for the year ended December 31,
2022. The decrease was primarily due to the decrease in gross profit and recognition of impairment and disposal loss on assets, partially
offset by the decrease in selling, general and administrative expenses.

 Other Income and Expenses

 Interest expense for the
year ended December 31, 2023 decreased by $43,433, from $1,027,951 for the year ended December 31, 2022, to $984,518. The Company had
short-term and long-term interest-bearing loans and lease obligation that aggregated $12,386,346 as of December 31, 2023, as compared
to $15,442,807 as of December 31, 2022.

 Provision for Income Taxes

 Full allowance for
deferred tax asset loss was provided in the year of 2023 and 2022. Income tax for the year ended December 31, 2023 is $346,954 as compared
to the income tax $11,711,339 for the year ended December 31, 2022.

 Net Loss

 As a result of the above,
net loss was $9,946,035 for the year ended December 31, 2023, representing an increase of $6,625,273, or 39.98%, from $16,571,308 for
the year ended December 31, 2022.

 Accounts Receivable

 Net accounts receivable
was $575,526 as of December 31, 2023, as compared with $nil as of December 31, 2022. We usually collect accounts receivable within 30
days of delivery and completion of sales.

 Inventories consist of raw
materials (accounting for 10.48% of total value of inventory as of December 31, 2023), semi-finished goods and finished goods. As of December
31, 2023, the recorded value of inventory increased by 23.87% to $3,558,193 from $2,872,622 as of December 31, 2022. The increase is mainly
due to the increase of finished goods, partially offset by the decrease of recycle paper board. More CMP products were produced in December
2023 to mitigate the impact of energy price rise starting from January 2024. As of December 31, 2023, the inventory of recycled paper
board, which is the main raw material for the production of CMP, was $198,744, approximately $1,059,417, or 84.20%, lower than the balance
as of December 31, 2022. As a result of better control over stock turnover and volatility of recycled paper board price, inventory was
kept in a minimum level.

 A summary of changes in
major inventory items is as follows:

 2023

 2022

 $ Change

 % Change

 Raw Materials

 Recycled paper board

 $
 198,744

 $
 1,258,161

 -1,059,417

 -84.20
 %

 Recycled white scrap paper

 10,647

 10,809

 -162

 -1.50
 %

 Tissue base paper

 21,138

 60,660

 -39,522

 -65.15
 %

 Gas

 21,428

 42,237

 -20,809

 -49.27
 %

 Mask fabric and other raw materials

 121,011

 99,569

 21,442

 21.53
 %

 Total Raw Materials

 372,968

 1,471,436

 -1,098,468

 -74.65
 %

 Semi-finished Goods

 300,207

 132,810

 167,397

 126.04
 %

 Finished Goods

 2,885,019

 1,268,376

 1,616,643

 127.46
 %

 Total inventory, gross

 3,558,194

 685,572

 23.87
 %

 Inventory reserve

 (2,959
)

 -

 -2,959

 Total inventory, net

 $
 3,555,235

 $

 682,613

 23.76
 %

 Renewal of operating lease

 On August 7, 2013, the Company's
Audit Committee and the Board of Directors approved the sale of the land use right of the Headquarters Compound (the "LUR"),
the office building and essentially all industrial-use buildings in the Headquarters Compound (the "Industrial Buildings"),
and three employee dormitory buildings located within the Headquarters Compound (the "Dormitories") to Hebei Fangsheng for
cash prices of approximately $2.77 million, $1.15 million, and $4.31 million respectively. In connection with the sale of the Industrial
Buildings, Hebei Fangsheng agreed to lease the Industrial Buildings back to the Company for its original use for a term of up to three
years, with an annual rental payment of approximately $141,727 (RMB1,000,000). The lease agreement was renewed in August 2022 with a term
of six years with the same rental payments as provided for in the original lease agreement.

 Capital Expenditure Commitment as of December 31, 2023

 On May 5, 2020, the Company
announced it planned the commercial launch of a new tissue paper production line PM10 and the Company signed an agreement to purchase
paper machine with paper machine supplier. The Company expected the new tissue paper production line to be launched after the completion
of trial run.

we had approximately $3.5 million in capital expenditure commitments that were mainly related to the purchase of paper machine of PM10.
The infrastructure work of PM10 has been completed and the associated ancillary facilities are working in progress. These commitments
are expected to be financed by bank loans and cash flows generated from our business operations.

 Financing with Sale-Leaseback

 The Company entered into
a sale-leaseback arrangement (the "Lease Financing Agreement") with TAC Leasing Co., Ltd.("TLCL") on August 6,
2020, for a total financing proceeds in the amount of RMB 16 million (approximately US$2.3 million). Under the sale-leaseback arrangement,
Tengsheng Paper sold the Leased Equipment to TLCL for 16 million (approximately US$2.3 million). Concurrent with the sale of equipment,
Tengsheng Paper leases back the equipment sold to TLCL for a lease term of three years. At the end of the lease term, Tengsheng Paper
may pay a nominal purchase price of RMB 100 (approximately $14) to TLCL and buy back the Leased Equipment. The Leased Equipment in amount
of $2,349,452 was recorded as right of use assets and the net present value of the minimum lease payments was recorded as lease liability
and calculated with TLCL's implicit interest rate of 15.6% per annum and stated at $567,099 at the inception of the lease on August
17, 2020.

 Tengsheng Paper made payments
due according to the schedule. On July 17, 2023, the Company made a final payment on outstanding obligations and bought back the Lease
Equipment at nominal price according to the agreement. The lease assets were reclassified as own assets and balance of Leased Equipment
net of amortization were $nil and $1,939,970 as of December 31, 2023 and 2022, respectively.

 Cash, Cash Equivalents and restricted cash

 Our cash, cash equivalents and restricted cash
as of December 31, 2023 was $4,391,921, a decrease of $5,132,947, from $9,524,868 as of December 31, 2022. The decrease of cash and cash
equivalents for the year ended December 31, 2023 was attributable to a number of factors including:

 i. Net cash provided by operating activities

 Net cash provided by operating
activities was $12,871,086 for the year ended December 31, 2023. The balance represented an increase of cash of $2,151,698, or 20.07%,
from $10,719,388 provided for the year ended December 31, 2022. Net loss for the year ended December 31, 2023 was $9,946,035, representing
a decrease of loss $6,625,273, or 39.98%, from a net loss of $16,571,308 for the year ended December 31, 2022. Changes in various asset
and liability account balances throughout the year ended December 31, 2023 also contributed to the net change in cash from operating activities
in year ended December 31, 2023. Chief among such changes is the decrease of accounts receivable in the amount of $280,970 during the
year of 2023. There was also an increase of $736,267 in the ending inventory balance as of December 31, 2023 (a decrease to net cash for
the year ended December 31, 2023 cash flow purposes). In addition, the Company had non-cash expenses relating to depreciation and amortization
in the amount of $14,225,990. The Company also had a net decrease of $9,322,532 in prepayment and other current assets (an increase to
net cash) and a net decrease of $999,812 in other payables and accrued liabilities and related parties (a decrease to net cash), as well
as a decrease in income tax payable of $412,504 (a decrease to net cash) during the year ended December 31, 2023.

 ii. Net cash used in investing activities

 We incurred $22,239,297
in net cash expenditures for investing activities during the year ended December 31, 2023, as compared to $10,898,531 for the year ended
December 31, 2022. Payments in 2023 were mainly for the payment for Land Use Right.

 iii. Net cash provided by financing activities

 Net cash provided by financing
activities was $4,410,099 for the year ended December 31, 2023, as compared to net cash used in financing activities in the amount of
$879,596 for the year ended December 31, 2022.

 2023

 2022

 Industrial and Commercial Bank of China ("ICBC") Loan 1

 $
 -

 $
 5,023,978

 ICBC Loan 2

 -

 287,167

 ICBC Loan 3

 -

 143,583

 ICBC Loan 4

 -

 -

 China Construction Bank Loan

 -

 143,583

 ICBC Loan 5

 -

 ICBC Loan 6

 2,824

 -

 ICBC Loan 7

 70,594

 -

 ICBC Loan 8

 350,149

 -

 Total short-term bank loans

 $
 423,567

 $
 5,598,311

 On November 10, 2022, the
Company entered into a working capital loan agreement with the ICBC. The loan was secured by the land use right of Dongfang Paper as collateral
for the benefit of the bank and guaranteed by Mr. Liu. The loan bore a fixed interest rate of 4.785% per annum. The Company repaid $71,743
in May 2023 and paid off the remaining balance of the loan in August 2023. The balance of the loan was $nil and $5,023,978 as of December
31, 2023 and 2022, respectively.

 On November 30, 2022, the
Company entered into a working capital loan agreement with the ICBC, with a balance of $nil and $287,167 as of December 31, 2023 and 2022,
respectively. The loan bore an interest rate of 4.25% per annum. The loan was fully repaid in May 2023.

 On November 30, 2022, the
Company entered into a working capital loan agreement with the ICBC, with a balance of $nil and $143,583 as of December 31, 2023 and 2022,
respectively. The loan bore an interest rate of 4.25% per annum. The loan was fully repaid in May 2023.

 On May 29, 2023, the Company
entered into a working capital loan agreement with the ICBC, to borrow $423,567 at a fixed interest rate of 4.25% per annum. The loan
was repaid in November 2023.

 On July 29, 2022, the Company
entered into a working capital loan agreement with the China Construction Bank, with a balance of $nil and $143,583 as of December 31,
2023 and 2022, respectively. The loan bore a fixed interest rate of 3.95% per annum. The loan was fully repaid in July 2023.

 On June 29, 2023, the Company
entered into a working capital loan agreement with the ICBC, to borrow $423,567 at a fixed interest rate of 3.55% per annum. The loan
was repaid in September, 2023.

 On September 15, 2023, the
Company entered into a working capital loan agreement with the ICBC, with a balance of $2,824 as of December 31, 2023. The loan bears
a fixed interest rate of 3.45% per annum. The loan will be due by September 14, 2024.

 On September 22, 2023, the
Company entered into a working capital loan agreement with the ICBC, with a balance of $ 70,594 as of December 31, 2023. The loan bears
a fixed interest rate of 3.45% per annum. The loan will be due by September 21, 2024.

 On September 22, 2023, the
Company entered into a working capital loan agreement with the ICBC, with a balance of $ 350,149 as of December 31, 2023. The loan bears
a fixed interest rate of 3.45% per annum. The loan will be due by September 21, 2024.

 As of December 31, 2022,
there were guaranteed short-term borrowings of $5,023,978 and unsecured bank loans of $574,333. As of December 31, 2023, there were guaranteed
short-term borrowings of $nil and unsecured bank loans of $423,567.

 The average short-term borrowing rates for the
years ended December 31, 2023, and 2022 were approximately 4.48% and 4.72%, respectively.

 As of December 31, 2023, and 2022, long-term loan balance
is $11,378,429 and $9,040,002, respectively.

 On April 16, 2014, the Company entered into a
loan agreement with the Rural Credit Union of Xushui District for a term of 5 years, which was originally due in various installments
from June 21, 2014 to November 18, 2018. The loan was guaranteed by an independent third party. Interest payment was due quarterly and
bore a rate of 7.68% per annum. Effective from November 15, 2022, the interest rate was reduced to 7% per annum. On November 6, 2018,
the loan was renewed for additional 5 years and will be due and payable in various installments from December 21, 2018 to November 5,
2023. The loan was fully repaid in December 2023. As of December 31, 2023 and 2022, total outstanding loan balance was $nil and $1,234,816,
respectively, which are presented as current liabilities in the consolidated balance sheet.

 On July 15, 2013, the Company entered into a loan
agreement with the Rural Credit Union of Xushui District for a term of 5 years, which was originally due and payable in various installments
from December 21, 2013 to July 26, 2018. On June 21, 2018, the loan was extended for additional 5 years and was due and payable in various
installments from December 21, 2018 to June 20, 2023. On August 24, 2023, the loan was extended for another 3 years and will be due and
payable on August 24, 2026. The loan is secured by certain of the Company's manufacturing equipment with net book value of $nil
and $280,466 as of December 31, 2023 and 2022, respectively. Interest payment is due monthly and bore a rate of 7.68% per annum. Effective
from November 15, 2022, the interest rate was reduced to 7% per annum. As of December 31, 2023 and 2022, the total outstanding loan balance
was $3,528,315 and $3,589,582. Out of the total outstanding loan balance, current portion amounted was $1,269,290, which is presented
as current liabilities in the consolidated balance sheet and the remaining balance of $2,259,025 is presented as non-current liabilities
in the consolidated balance sheet as of December 31, 2023.

 On April 17, 2019, the Company entered into a
loan agreement with the Rural Credit Union of Xushui District for a term of 2 years, which was due and payable in various installments
from August 21, 2019 to April 16, 2021. The loan was renewed on March 22, 2021 and December 24, 2021 and extended for additional 3 years
in total, which will be due on April 16, 2024 according to the new schedule. The loan is secured by Tengsheng Paper with its land use
right as collateral for the benefit of the credit union. Interest payment is due quarterly and bore a rate of 7.68% per annum. Effective
from November 15, 2022, the interest rate was reduced to 7% per annum. As of December 31, 2023 and 2022, the total outstanding loan balance
was $2,259,026 and $2,297,332, respectively, which are presented as current liabilities and non-current liabilities in the consolidated
balance sheet as of December 31, 2023 and 2022, respectively.

 On December 12, 2019, the Company entered into
a loan agreement with the Rural Credit Union of Xushui District for a term of 2 years, which is due and payable in various installments
from June 21, 2020 to December 11, 2021. The loan was renewed on March 22, 2021 and December 24, 2021 and extended for additional 3 years
in total, which will be due on December 11, 2024 according to the new schedule. The loan is secured by Tengsheng Paper with its land use
right as collateral for the benefit of the credit union. Interest payment is due monthly and bore a rate of 7.56% per annum. Effective
from November 15, 2022, the interest rate was reduced to 7% per annum. As of December 31, 2023 and 2022, the total outstanding loan balance
was $1,835,458 and $1,866,582, respectively, which are presented as current liabilities and non-current liabilities in the consolidated
balance sheet as of December 31, 2023 and 2022, respectively.

 On February 26, 2023, the Company entered into
a loan agreement with the Rural Credit Union of Xushui District for a term of 2 years, which is due and payable in various installments
from August 21, 2023 to February 24, 2025. The loan is secured by Dongfang Paper with its land use right as collateral for the benefit
of the credit union. Interest payment is due monthly and bore a rate of 7% per annum. As of December 31, 2023, the total outstanding loan
balance was $2,541,404. Out of the total outstanding loan balance, current portion amounted was $1,284,820, which is presented as current
liabilities in the consolidated balance sheet and the remaining balance of $1,256,584 is presented as non-current liabilities in the consolidated
balance sheet as of December 31, 2023.

 On July 1, 2022, the Company entered into a loan
agreement with Jiangna Yu, a customer of the Company, pursuant to which the Company borrowed RMB 400,000 from Jiangna Yu for a term of
five years. The loan is payable in monthly installment of RMB10,667 from July 2022 to July 2027. The company repaid the loan in November
2023. As of December 31, 2023 and 2022, the total outstanding loan balance was $nil and $51,690, respectively. Out of the total outstanding
loan balance, current portion amounted $nil and $11,486, respectively, which are presented as current liabilities and the remaining balance
of $nil and $40,204 are presented as non-current liabilities in the consolidated balance sheet as of December 31, 2023 and 2022, respectively.

 On December 5, 2023, the
Company entered into a loan agreement with the Rural Credit Union of Xushui District for a term of 3 years, which was due in various installments
from June 21, 2024 to December 5, 2026. The loan was guaranteed by an independent third party. Interest payment was due monthly and bore
a rate of 7% per annum. As of December 31, 2023, total outstanding loan balance was $1,214,226. Out of the total outstanding loan balance,
current portion amounted $225,903, which is presented as current liabilities and the remaining balance of $ 988,323 is presented as non-current
liabilities in the consolidated balance sheet as of December 31, 2023.

 Total interest expenses
for the short-term bank loans and long-term loans for the years ended December 31, 2023, and 2022 were $977,678 and $988,997 respectively.

 Related party transactions

 Mr. Zhenyong Liu has loaned
money to Dongfang Paper for working capital purposes over a period of time. On January 1, 2013, Dongfang Paper and Mr. Zhenyong Liu renewed
the three-year term loan previously entered on January 1, 2010, and extended the maturity date further to December 31, 2015. On December
31, 2015, the Company paid off the loan of $2,249,279, together with interest of $391,374 for the period from 2013 to 2015. Approximately
$361,915 and $368,052 of interest were outstanding to Mr. Zhenyong Liu, which were recorded in other payables and accrued liabilities
as part of the current liabilities in the consolidated balance sheet as of December 31, 2023, and 2022, respectively.

 On December 10, 2014, Mr.
Zhenyong Liu provided a loan to the Company, amounted to $8,742,278 to Dongfang Paper for working capital purpose with an interest rate
of 4.35% per annum, which was based on the primary lending rate of People's Bank of China. The unsecured loan was provided on December
10, 2014, and would be originally due on December 10, 2017. During the year of 2016, the Company repaid $6,012,416 to Mr. Zhenyong Liu,
together with interest of $288,596. In February 2018, the company paid off the remaining balance, together with interest of $20,400. As
of December 31, 2023, and 2022, approximately $42,357 and $43,075 of interest were outstanding to Mr. Zhenyong Liu, which was recorded
in other payables and accrued liabilities as part of the current liabilities in the consolidated balance sheet.

 On March 1, 2015, the Company
entered an agreement with Mr. Zhenyong Liu which allows Dongfang Paper to borrow from the CEO an amount up to $17,201,342 (RMB120,000,000)
for working capital purposes. The advances or funding under the agreement are due three years from the date each amount is funded. The
loan is unsecured and carries an annual interest rate set on the basis of the primary lending rate of the People's Bank of China
at the time of the borrowing. On July 13, 2015, an unsecured amount of $4,324,636 was drawn from the facility. On October 14, 2016 an
unsecured amount of $2,883,091 was drawn from the facility. In February 2018, the company repaid $1,507,432 to Mr. Zhenyong Liu. The loan
would be originally due on July 12, 2018. Mr. Zhenyong Liu agreed to extend the loan for additional 3 years and the remaining balance
will be due on July 12, 2021. On November 23, 2018, the company repaid $3,768,579 to Mr. Zhenyong Liu, together with interest of $158,651.
In December 2019, the Company paid off the remaining balance, together with interest of 94,636. As of December 2023, and 2022, the outstanding
interest was $194,047 and $197,338, respectively, which was recorded in other payables and accrued liabilities as part of the current
liabilities in the consolidated balance sheet.

and 2022, total amount of loans due to Mr. Zhenyong Liu were $nil. The interest expense incurred for such related party loans are $nil
for the years ended December 31, 2023, and 2022. The accrued interest owe to Mr. Zhenyong Liu was approximately $598,319 and $608,465,
as of December 31, 2023 and 2022, respectively, which was recorded in other payables and accrued liabilities.

 On December 8, 2021, the
Company entered into an agreement with Mr. Zhenyong Liu, which allows Mr. Zhenyong Liu to borrow from the Company an amount of $6,507,431
(RMB44,089,085). The loan was unsecured and carried a fixed interest rate of 3% per annum. The loan was repaid by Mr. Zhenyong Liu in
February 2022.

 In October 2022 and November
2022, the Company entered into two agreements with Mr. Zhenyong Liu, which allowed Mr. Zhenyong Liu to borrow from the Company an amount
of $7,059,455 (RMB50,000,000) in total. The loans were unsecured and carried a fixed interest rate of 4.35% per annum. $4,235,673 (RMB30,000,000)
was repaid by Mr. Zhengyong Liu in August 2023 and the remaining balance was repaid in December 2023. Interest income of the loan for
the year ended December 31, 2023 was $290,275.

and 2022, amount due to shareholder are $727,433, which represent funds from shareholders to pay for various expenses incurred in the
U.S. The amount is due on demand with interest free.

 Critical Accounting Policies and Estimates

 The Company's financial
statements are prepared in accordance with accounting principles generally accepted in the United States, which require us to make estimates
and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the
date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Management makes these
estimates using the best information available at the time the estimates are made. However, actual results could differ materially from
those estimates. The most critical accounting policies are listed below:

 Revenue Recognition Policy

 The Company recognizes revenue
when goods are delivered and a formal arrangement exists, the price is fixed or determinable, the delivery is completed, no other significant
obligations of the Company exist, and collectability is reasonably assured. Goods are considered delivered when the customer's truck
picks up goods at our finished goods inventory warehouse.

 Long-Lived Assets

 The Company evaluates the
recoverability of long-lived assets and the related estimated remaining useful lives when events or circumstances lead management to believe
that the carrying value of an asset may not be recoverable and the undiscounted cash flows estimated to be generated by those assets are
less than the assets' carrying amount. In such circumstances, those assets are written down to estimated fair value. Our judgments
regarding the existence of impairment indicators are based on market conditions, assumptions for operational performance of our businesses,
and possible government policy toward operating efficiency of the Chinese paper manufacturing industry. For the years ended December 31,
2023 and 2022, no events or circumstances occurred for which an evaluation of the recoverability of long-lived assets was required. We
are currently not aware of any events or circumstances that may indicate any need to record such impairment in the future.

 Foreign Currency Translation

 The functional currency
of Dongfang Paper and Baoding Shengde is the Chinese Yuan Renminbi ("RMB"). Under ASC Topic 830-30, all assets and liabilities
are translated into United States dollars using the current exchange rate at the end of each fiscal period. The current exchange rates
used by the Company as of December 31, 2023 and 2022 to translate the Chinese RMB to the U.S. Dollars are 7.0827:1 and 6.9646:1, respectively.
Revenues and expenses are translated using the prevailing average exchange rates at 7.0558:1, and 6.7573:1 for the years ended December
31, 2023 and 2022, respectively. Translation adjustments are included in other comprehensive income (loss).

 Off-Balance Sheet Arrangements

 We were the guarantor for
Baoding Huanrun Trading Co., for its long-term bank loans in an amount of $4,376,862 (RMB31,000,000), which matures at various times in
2028. Baoding Huanrun Trading Co. is one of our major suppliers of raw materials. This helps us to maintain a good relationship with the
supplier and negotiate for better terms in payment for materials. If Huanrun Trading Co. were to become insolvent, the Company could be
materially adversely affected. Except as aforesaid, we have no material off-balance sheet transactions.

 Recent Accounting Pronouncements

 In October 2021, the FASB
issued ASU No. 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with
Customers (ASU 2021-08), which clarifies that an acquirer of a business should recognize and measure contract assets and contract liabilities
in a business combination in accordance with Topic 606, Revenue from Contracts with Customers. The new amendments are effective for fiscal
years beginning after December 15, 2023, including interim periods within those fiscal years. The amendments should be applied prospectively
to business combinations occurring on or after the effective date of the amendments, with early adoption permitted. The Company does not
expect the adoption of this standard to have a material impact on its consolidated financial statements.

 Item 7A. Quantitative and Qualitative Disclosures About Market Risk

 Foreign Exchange Risk

 While our reporting currency
is the US dollar, almost all of our consolidated revenues and consolidated costs and expenses are denominated in RMB. All of our assets
are denominated in RMB except for some cash and cash equivalents and accounts receivables. As a result, we are exposed to foreign exchange
risks as our revenues and results of operations may be affected by fluctuations in the exchange rate between US dollar and RMB. If the
RMB depreciates against the US dollar, the value of our RMB revenues, earnings and assets as expressed in our US dollar financial statements
will decline. We have not entered into any hedging transactions in an effort to reduce our exposure to foreign exchange risk.

 Inflation

 Although we are generally
able to pass along minor incremental cost inflation to our customers, inflation such as increases in the costs of our products and overhead
costs may adversely affect our operating results. We do not believe that inflation in China has had a material impact on our financial
position or results of operations to date, however, a high rate of inflation in the future may have an adverse effect on our ability to
maintain current levels of gross margin and selling and distribution, general and administrative expenses as a percentage of net revenues
if the selling prices of our products do not increase in line with the increased costs.

 Item 8. Financial Statements and Supplementary Data

 Our audited financial statement
for the fiscal year ended December 31, 2023 and 2022, together with the report of the independent certified public accounting firms thereon
and the notes thereto, are presented beginning at page F-1.

 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING
FIRM

 To: The Board of Directors and Stockholders
of

 IT Tech Packaging, Inc.

 Opinion on the Financial Statements

 We have audited the accompanying consolidated balance sheets of IT
Tech Packaging, Inc. (the Company) as of December 31, 2023, and 2022, and the related consolidated statements of income (loss) and comprehensive
income (loss), changes in stockholders' equity, and cash flows for each of the years in the two-year period ended December 31, 2023,
and the related notes (collectively referred to as the financial statements). In our opinion, the financial statements present fairly,
in all material respects, the financial position of the Company as of December 31, 2023, and 2022, and the results of its operations and
its cash flows for each of the years in the two-year period ended December 31, 2023, in conformity with accounting principles generally
accepted in the United States of America.

 Basis for Opinion

 These financial statements are the responsibility of the Company's
management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public
accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent
with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities
and Exchange Commission and the PCAOB.

 We conducted our audits in accordance with the standards of the PCAOB.
Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free
of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit
of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control
over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control
over financial reporting. Accordingly, we express no such opinion.

 Our audits included performing procedures to assess the risks of material
misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures
included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included
evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation
of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

 Critical Audit Matters

 The critical audit matter communicated below is a matter arising from
the current period audit of the financial statements that was communicated or required to be communicated to the audit committee and that:
(1) related to the accounts or disclosures that are material to the financial statements and (2) involved our especially challenging,
subjective, or complex judgments. The communication of the critical audit matter does not alter in anyway our opinion on the financial
statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical
audit matters or on the accounts or disclosures to which they relate.

 The principal considerations in determining that this was a critical
audit matter was that the Company had a significant accumulated balance and the carrying value of such assets are subject to estimation,
judgment, and complex calculations. The balance resulted from temporary differences in taxes dues as the result of the difference in timing
of recognition of expenses that are required under generally accepted accounting principles, but may require deferral under local tax
regulations. The Company's consolidated financial statements include entities in multiple jurisdictions with varying tax laws. These
circumstances lead to estimation and interpretation that may be challenging to assess and evaluate as part of the audit. The audit engagement
team addressed this critical accounting matter by reviewing the Company's accounting policies, perform extended audit procedures
including examination of relevant local tax laws, testing for arithmetical accuracy of the asset, review of the Company's assumptions
and estimates concerning future profitability, and independent recalculation of the future tax asset. The engagement team was satisfied
with the evidence accumulated to support our audit opinion and to mitigate the risk of material misstatement to an acceptable level. The
accounts that are affected by this critical audit matter are deferred tax assets, related valuation allowance and income tax expense.

 /s/ GGF CPA LTD

 GGF CPA LTD Certified Public Accountants

 We have served as the Company's auditor since March 1, 2024.

 Guangzhou, Guangdong, China

 PCAOB NO: 2729

 F- 1

 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING
FIRM

 To: The Board of Directors and Stockholders of

 IT Tech Packaging, Inc.

 Opinion on the Financial Statements

 We have audited the accompanying consolidated
balance sheets of IT Tech Packaging, Inc. (the Company) as of December 31, 2022, and 2021, and the related consolidated statements of
income (loss) and comprehensive income (loss), changes in stockholders' equity, and cash flows for each of the years in the two-year
period ended December 31, 2022, and the related notes (collectively referred to as the financial statements). In our opinion, the financial
statements present fairly, in all material respects, the financial position of the Company as of December 31, 2022, and 2021, and the
results of its operations and its cash flows for each of the years in the two-year period ended December 31, 2022, in conformity with
accounting principles generally accepted in the United States of America.

 Basis for Opinion

 These financial statements are the responsibility
of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our
audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are
required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and
regulations of the Securities and Exchange Commission and the PCAOB.

 We conducted our audits in accordance with the
standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged
to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding
of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Company's
internal control over financial reporting. Accordingly, we express no such opinion.

 Our audits included performing procedures to assess
the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond
to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating
the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

 Critical Audit Matters

 The critical audit matter communicated below is
a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the
audit committee and that: (1) related to the accounts or disclosures that are material to the financial statements and (2) involved our
especially challenging, subjective, or complex judgments. The communication of the critical audit matter does not alter in anyway our
opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate
opinion on the critical audit matters or on the accounts or disclosures to which they relate.

 We determined that the auditing of deferred tax
asset should be considered a critical audit matter. The principal considerations in determining that this was a critical audit matter
was that the Company had a significant accumulated balance and the carrying value of such assets are subject to estimation, judgment,
and complex calculations. The balance resulted from temporary differences in taxes dues as the result of the difference in timing of recognition
of expenses that are required under generally accepted accounting principles, but may require deferral under local tax regulations. The
Company's consolidated financial statements include entities in multiple jurisdictions with varying tax laws. These circumstances
lead to estimation and interpretation that may be challenging to assess and evaluate as part of the audit. The audit engagement team addressed
this critical accounting matter by reviewing the Company's accounting policies, perform extended audit procedures including examination
of relevant local tax laws, testing for arithmetical accuracy of the asset, review of the Company's assumptions and estimates concerning
future profitability, and independent recalculation of the future tax asset. The engagement team was satisfied with the evidence accumulated
to support our audit opinion and to mitigate the risk of material misstatement to an acceptable level. The accounts that are affected
by this critical audit matter are deferred tax assets, related valuation allowance and income tax expense.

 /s/ WWC, P.C.

 WWC, P.C.

 Certified Public Accountants

 We have served as the Company's auditor since March 25, 2018.

 San Mateo, California

 PCAOB NO.: 1171

 March 23, 2023

 F- 2

 CONSOLIDATED BALANCE SHEETS

 AS OF DECEMBER 31, 2023 AND 2022

 2023

 2022

 ASSETS

 Current Assets

 Cash and bank balances

 $
 3,918,938

 $

 Restricted cash

 472,983

 -

 Accounts receivable (net of allowance for doubtful accounts of $ 11,745 and $ 881,878 as of December 31, 2023 and December 31, 2022, respectively)

 575,526

 -

 3,555,235

 Prepayments and other current assets

 18,981,290

 27,207,127

 Due from related parties

 853,929

 7,561,858

 Total current assets

 28,357,901

 47,166,475

 Prepayment on property, plant and equipment

 -

 1,031,502

 Operating lease right-of-use assets, net

 528,648

 672,722

 Finance lease right-of-use assets, net

 -

 1,939,970

 Property, plant, and equipment, net

 163,974,022

 151,569,898

 Value-added tax recoverable

 1,883,078

 2,066,666

 Deferred tax asset non-current

 -

 -

 Total Assets

 $
 194,743,649

 $
 204,447,233

 LIABILITIES AND STOCKHOLDERS' EQUITY

 Current Liabilities

 Short-term bank loans

 $
 423,567

 $
 5,598,311

 Current portion of long-term loans

 6,874,497

 4,835,884

 Lease liability

 100,484

 224,497

 Accounts payable

 4,991

 5,025

 Advance from customers

 136,167

 -

 Due to related parties

 728,869

 727,462

 Accrued payroll and employee benefits

 237,842

 165,986

 Other payables and accrued liabilities

 12,912,517

 5,665,558

 Income taxes payable

 -

 417,906

 Total current liabilities

 21,418,934

 17,640,629

 4,503,932

 4,204,118

 Deferred gain on sale-leaseback

 -

 52,314

 Lease liability - non-current

 483,866

 579,997

 Derivative liability

 646,283

 Total liabilities (including amounts of the consolidated VIE without recourse to the Company of $ 20,084,995 and $ 16,784,878 as of December 31, 2023 and 2022, respectively)

 26,406,786

 23,123,341

 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 December 31, 2023 and 2022.

 10,066

 10,066

 Additional paid-in capital

 89,172,771

 89,172,771

 Statutory earnings reserve

 Accumulated other comprehensive loss

 ( 10,555,534
)

 ( 7,514,540
)

 Retained earnings

 83,628,986

 93,575,021

 Total stockholders' equity

 168,336,863

 181,323,892

 Total Liabilities and Stockholders' Equity

 $
 194,743,649

 $
 204,447,233

 See accompanying notes to consolidated financial
statements.

 F- 3

 CONSOLIDATED STATEMENTS OF INCOME (LOSS) AND
COMPREHENSIVE INCOME (LOSS)

 FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022

 2023

 2022

 $
 86,546,950

 $
 100,352,434

 Cost of sales

 ( 85,547,065
)

 ( 95,598,238
)

 Gross Profit

 999,885

 4,754,196

 Selling, general and administrative expenses

 ( 9,075,475
)

 ( 10,058,723
)

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

 ( 1,500,298
)

 -

 Loss from Operations

 ( 9,575,888
)

 ( 5,304,527
)

 Other Income (Expense):

 Interest income

 315,096

 24,264

 Interest expense

 ( 984,518
)

 ( 1,027,951
)

 Gain on acquisition

 -

 30,994

 Gain (Loss) on derivative liability

 646,229

 1,417,251

 Loss before Income Taxes

 ( 9,599,081
)

 ( 4,859,969
)

 Provision for Income Taxes

 ( 346,954
)

 ( 11,711,339
)

 Net Loss

)

)

 Other Comprehensive Loss

 Foreign currency translation adjustment

 ( 3,040,994
)

 ( 18,010,708
)

 Total Comprehensive Loss

 $
 ( 12,987,029
)

 $
 ( 34,582,016
)

 Losses Per Share:

 Basic and Diluted Losses per Share

 $
 ( 0.99
)

 $
 ( 1.66
)

 Outstanding – Basic and Diluted

 9,972,788

 F- 4

 CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS'
EQUITY

 FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022

 Accumulated

 Additional

 Statutory

 Other

 Common Stock

 Paid-in

 Earnings

 Comprehensive

 Retained

 Shares

 Capital

 Reserve

 Income (loss)

 Earnings

 Total

 Balance at December 31, 2021

 9,915,920

 $
 9,916

 $
 89,016,921

 $

 $
 10,496,168

 $
 110,146,329

 $
 215,749,908

 Issuance of shares to officer and
directors

 150,000

 155,850

 156,000

 Foreign currency translation adjustment

 ( 18,010,708
)

 ( 18,010,708
)

 Net loss

)

)

 Balance at December 31, 2022

 $
 10,066

 $
 89,172,771

 $

 $
 ( 7,514,540
)

 $
 93,575,021

 $
 181,323,892

 Foreign currency translation adjustment

 ( 3,040,994
)

 ( 3,040,994
)

 Net loss

)

)

 Balance at December 31, 2023

 $
 10,066

 $
 89,172,771

 $

 $
 ( 10,555,534
)

 $
 83,628,986

 $
 168,336,863

 See accompanying notes to consolidated financial
statements.

 F- 5

 CONSOLIDATED STATEMENTS OF CASH FLOWS

 FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022

 2023

 2022

 Cash Flows from Operating Activities:

 Net income

 $
)

 $
)

 Adjustments to reconcile net income to net cash provided by operating activities:

 Depreciation and amortization

 14,225,990

 14,788,036

 (Gain) Loss on derivative liability

 ( 646,229
)

 ( 1,417,251
)

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

 1,608,542

 -

 (Recovery from) Allowance for bad debts

 34,193

 843,779

 Allowances for inventories, net

 2,970

 -

 Share-based compensation and expenses

 -

 156,000

 Gain on acquisition

 -

 ( 30,992
)

 Deferred tax

 -

 10,261,104

 Changes in operating assets and liabilities:

 Accounts receivable

 280,970

 3,750,196

 Prepayments and other current assets

 9,322,532

 ( 3,976,010
)

 ( 736,267
)

 2,554,072

 Accounts payable

 ( 4,496
)

 Advance from customers

 136,686

 ( 37,452
)

 Related parties

 ( 478,025
)

 444,291

 Accrued payroll and employee benefits

 74,908

 ( 103,683
)

 Other payables and accrued liabilities

 ( 596,695
)

 677,840

 Income taxes payable

 ( 412,504
)

 ( 614,738
)

 Net Cash Provided by Operating Activities

 12,871,086

 10,719,388

 Cash Flows from Investing Activities:

 Purchases of property, plant and equipment

 ( 22,292,870
)

 ( 4,534,092
)

 Proceeds from sale of property, plant and equipment

 53,573

 -

 Acquisition of land

 -

 ( 6,364,439
)

 Net Cash Used in Investing Activities

 ( 22,239,297
)

 ( 10,898,531
)

 Cash Flows from Financing Activities:

 Proceeds from issuance of shares and warrants, net

 -

 -

 Proceeds from short term bank loans

 1,275,546

 6,214,020

 Proceeds from long term loans

 3,769,948

 59,195

 Repayment of bank loans

 ( 7,647,610
)

 ( 6,071,952
)

 Payment of capital lease obligation

 ( 74,154
)

 ( 206,114
)

 Loan to a related party (net)

 7,086,369

 ( 874,745
)

 Net Cash Provided by (Used in) Financing Activities

 4,410,099

 ( 879,596
)

 Effect of Exchange Rate Changes on Cash and Cash Equivalents

 ( 174,835
)

 ( 618,005
)

 Net Decrease in Cash and Cash Equivalents

 ( 5,132,947
)

 ( 1,676,744
)

 Cash, Cash Equivalents and Restricted Cash - Beginning of Year

 11,201,612

 Cash, Cash Equivalents and Restricted Cash - End of Year

 $
 4,391,921

 $

 Supplemental Disclosure of Cash Flow Information:

 Cash paid for interest, net of capitalized interest cost

 $
 1,484,461

 $
 320,568

 Cash paid for income taxes

 $
 759,458

 $
 2,049,911

 Cash and bank balances

 3,918,938

 Restricted cash

 472,983

 -

 Total cash, cash equivalents and restricted cash shown in the statement of cash flows

 4,391,921

 See accompanying notes to consolidated financial
statements.

 F- 6

 (1) Organization and Business Background

 IT Tech Packaging, Inc. (the "Company")
was incorporated in the State of Nevada on December 9, 2005, under the name "Carlateral, Inc." Through the steps described
immediately below, we became the holding company for Hebei Baoding Dongfang Paper Milling Company Limited ("Dongfang Paper"),
a producer and distributor of paper products in China, on October 29, 2007.

 Effective on August 1, 2018, we changed our corporate
name to IT Tech Packaging, Inc.. The name change was effected through a parent/subsidiary short-form merger of IT Tech Packaging, Inc.,
our wholly-owned Nevada subsidiary formed solely for the purpose of the name change, with and into us. We were the surviving entity. In
connection with the name change, our common stock began being traded under a new NYSE symbol, "ITP," and a new CUSIP number,
46527C100, at such time.

 On June 9, 2022, the Board of Directors of the
Company approved a reverse stock split of the Company's issued and outstanding shares of common stock, par value $ 0.001 per share
(the "Common Stock"), at a ratio of 1-for-10 (the "Reverse Stock Split"). The Reverse Stock Split become effective
on July 7, 2022 (the "Effective Date"), and the shares began trading on the split-adjusted basis on the NYSE American under
the Company's existing trading symbol "ITP" at market open on July 8, 2022. The new CUSIP number following the Reverse
Stock Split will be 46527C 209. All references made to share or per share amounts in the accompanying consolidated financial statements
and applicable disclosures have been retroactively adjusted to reflect the effects of the Reverse Stock Split.

 On October 29, 2007, pursuant to an agreement
and plan of merger (the "Merger Agreement"), the Company acquired Dongfang Zhiye Holding Limited ("Dongfang Holding"),
a corporation formed on November 13, 2006 under the laws of the British Virgin Islands, and issued the shareholders of Dongfang Holding
an aggregate of 7,450,497 (as adjusted for a four-for-one reverse stock split effected in November 2009) shares of our common stock, which
shares were distributed pro-rata to the shareholders of Dongfang Holding in accordance with their respective ownership interests in Dongfang
Holding. At the time of the Merger Agreement, Dongfang Holding owned all of the issued and outstanding stock and ownership of Dongfang
Paper and such shares of Dongfang Paper were held in trust with Zhenyong Liu, Xiaodong Liu and Shuangxi Zhao, for Mr. Liu, Mr. Liu and
Mr. Zhao (the original shareholders of Dongfang Paper) to exercise control over the disposition of Dongfang Holding's shares in
Dongfang Paper on Dongfang Holding's behalf until Dongfang Holding successfully completed the change in registration of Dongfang
Paper's capital with the relevant PRC Administration of Industry and Commerce as the 100 % owner of Dongfang Paper's shares.
As a result of the merger transaction, Dongfang Holding became a wholly owned subsidiary of the Company, and Dongfang Holding's
wholly owned subsidiary, Dongfang Paper, became an indirectly owned subsidiary of the Company.

 Dongfang Holding, as the 100 % owner of Dongfang
Paper, was unable to complete the registration of Dongfang Paper's capital under its name within the proper time limits set forth
under PRC law. In connection with the consummation of the restructuring transactions described below, Dongfang Holding directed the trustees
to return the shares of Dongfang Paper to their original shareholders, and the original Dongfang Paper shareholders entered into certain
agreements with Baoding Shengde Paper Co., Ltd. ("Baoding Shengde") to transfer the control of Dongfang Paper over to Baoding
Shengde.

 On June 24, 2009, the Company consummated a number
of restructuring transactions pursuant to which it acquired all of the issued and outstanding shares of Shengde Holdings Inc., a Nevada
corporation. Shengde Holdings Inc. was incorporated in the State of Nevada on February 25, 2009. On June 1, 2009, Shengde Holdings Inc.
incorporated Baoding Shengde, a limited liability company organized under the laws of the PRC. Because Baoding Shengde is a wholly-owned
subsidiary of Shengde Holdings Inc., it is regarded as a wholly foreign-owned entity under PRC law.

 F- 7

 To ensure proper compliance of the Company's
control over the ownership and operations of Dongfang Paper with certain PRC regulations, on June 24, 2009, the Company entered into a
series of contractual agreements (the "Contractual Agreements") with Dongfang Paper and Dongfang Paper Equity Owners via the
Company's wholly owned subsidiary Shengde Holdings Inc. ("Shengde Holdings") a Nevada corporation and Baoding Shengde
Paper Co., Ltd. ("Baoding Shengde"), a wholly foreign-owned enterprise in the PRC with an original registered capital of $ 10,000,000
(subsequently increased to $ 60,000,000 in June 2010). Baoding Shengde is mainly engaged in production and distribution of digital photo
paper and single-use face masks and is 100 % owned by Shengde Holdings. Prior to February 10, 2010, the Contractual Agreements included
(i) Exclusive Technical Service and Business Consulting Agreement, which generally provides that Baoding Shengde shall provide exclusive
technical, business and management consulting services to Dongfang Paper, in exchange for service fees including a fee equivalent to 80 %
of Dongfang Paper's total annual net profits; (ii) Loan Agreement, which provides that Baoding Shengde will make a loan in the aggregate
principal amount of $ 10,000,000 to Dongfang Paper Equity Owners in exchange for each such shareholder agreeing to contribute all of its
proceeds from the loan to the registered capital of Dongfang Paper; (iii) Call Option Agreement, which generally provides, among other
things, that Dongfang Paper Equity Owners irrevocably grant to Baoding Shengde an option to purchase all or part of each owner's
equity interest in Dongfang Paper. The exercise price for the options shall be RMB 1 which Baoding Shengde should pay to each of Dongfang
Paper Equity Owner for all their equity interests in Dongfang Paper; (iv) Share Pledge Agreement, which provides that Dongfang Paper Equity
Owners will pledge all of their equity interests in Dongfang Paper to Baoding Shengde as security for their obligations under the other
agreements described in this section. Specifically, Baoding Shengde is entitled to dispose of the pledged equity interests in the event
that Dongfang Paper Equity Owners breach their obligations under the Loan Agreement or Dongfang Paper fails to pay the service fees to
Baoding Shengde pursuant to the Exclusive Technical Service and Business Consulting Agreement; and (v) Proxy Agreement, which provides
that Dongfang Paper Equity Owners shall irrevocably entrust a designee of Baoding Shengde with such shareholder's voting rights
and the right to represent such shareholder to exercise such owner's rights at any equity owners' meeting of Dongfang Paper
or with respect to any equity owner action to be taken in accordance with the laws and Dongfang Paper's Articles of Association.
The terms of the agreement are binding on the parties for as long as Dongfang Paper Equity Owners continue to hold any equity interest
in Dongfang Paper. A Dongfang Paper Equity Owner will cease to be a party to the agreement once it transfers its equity interests with
the prior approval of Baoding Shengde. As the Company had controlled Dongfang Paper since July 16, 2007 through Dongfang Holding and the
trust until June 24, 2009 and continued to control Dongfang Paper through Baoding Shengde and the Contractual Agreements, the execution
of the Contractual Agreements is considered as a business combination under common control.

 On February 10, 2010, Baoding Shengde and the
Dongfang Paper Equity Owners entered into a Termination of Loan Agreement to terminate the above-mentioned $ 10,000,000 Loan Agreement.
Because of the Company's decision to fund future business expansions through Baoding Shengde instead of Dongfang Paper, the $ 10,000,000
loan contemplated was never made prior to the point of termination. The parties believe the termination of the Loan Agreement does not
in itself compromise the effective control of the Company over Dongfang Paper and its businesses in the PRC.

 An agreement was also entered into among Baoding
Shengde, Dongfang Paper and the Dongfang Paper Equity Owners on December 31, 2010, reiterating that Baoding Shengde is entitled to 100 %
of the distributable profit of Dongfang Paper, pursuant to the above- mentioned Contractual Agreements. In addition, Dongfang Paper and
the Dongfang Paper Equity Owners shall not declare any of Dongfang Paper's unappropriated earnings as dividend, including the unappropriated
earnings of Dongfang Paper from its establishment to 2010 and thereafter.

 On June 25, 2019, Dongfang Paper entered into
an acquisition agreement with the shareholder of Hebei Tengsheng Paper Co., Ltd. ("Tengsheng Paper"), a limited liability
company organized under the laws of the PRC, pursuant to which Dongfang Paper will acquire Tengsheng Paper. Full payment of the consideration
in the amount of RMB 320 million (approximately $ 45 million) was made on February 23, 2022.

 QianrongQianhui Hebei Technology Co., Ltd ("Qianrong"),
a wholly owned subsidiary of Shengde holding, was incorporated on July 15, 2021. It is a service provider of high quality material solutions
for textile, cosmetics and paper production.

 The Company has no direct equity interest in Dongfang
Paper. However, through the Contractual Agreements described above, the Company is found to be the primary beneficiary (the "Primary
Beneficiary") of Dongfang Paper and is deemed to have the effective control over Dongfang Paper's activities that most significantly
affect its economic performance, resulting in Dongfang Paper being treated as a controlled variable interest entity of the Company in
accordance with Topic 810 - Consolidation of the Accounting Standards Codification (the "ASC") issued by the Financial Accounting
Standard Board (the "FASB"). The revenue generated from Dongfang Paper and Tengsheng Paper for the years ended December 31,
2023 and 2022 was accounted for 99.88 %%and 99.74 % of the Company's total revenue, respectively. Dongfang Paper and Tengsheng Paper
also accounted for 94.93 % and 88.54 % of the total assets of the Company as of December 31, 2023 and 2022, respectively.

 F- 8

 As of December 31, 2023, and 2022, details of the Company's subsidiaries and variable interest entity are as follows:

 Date of

 Place of

 Percentage

 Incorporation

 Incorporation or

 of

 Name

 or Establishment

 Establishment

 Ownership

 Principal Activity

 Subsidiary:

 Dongfang Holding

 November 13, 2006

 BVI

 100 %

 Inactive investment holding

 Shengde Holdings

 February 25, 2009

 State of Nevada

 100 %

 Investment holding

 June 1, 2009

 PRC

 100 %

 Paper production and distribution

 Qianrong

 July 15, 2021

 PRC

 100 %

 New material technology service

 Variable interest entity ("VIE"):

 March 10, 1996

 PRC

 Control*

 Paper production and distribution

 April 07, 2011

 PRC

 Control**

 Paper production and distribution

 *
 Dongfang Paper is treated as a 100 % controlled variable interest
entity of the Company.

 **
 Tengsheng Paper is 100 % subsidiary of Dongfang Paper.

 However, uncertainties in the PRC legal system
could cause the Company's current ownership structure to be found to be in violation of any existing and/or future PRC laws or regulations
and could limit the Company's ability, through its subsidiary, to enforce its rights under these contractual arrangements. Furthermore,
shareholders of the VIE may have interests that are different than those of the Company, which could potentially increase the risk that
they would seek to act contrary to the terms of the aforementioned agreements.

 In addition, if the current structure or any of
the contractual arrangements were found to be in violation of any existing or future PRC law, the Company may be subject to penalties,
which may include, but not be limited to, the cancellation or revocation of the Company's business and operating licenses, being
required to restructure the Company's operations or being required to discontinue the Company's operating activities. The
imposition of any of these or other penalties may result in a material and adverse effect on the Company's ability to conduct its
operations. In such case, the Company may not be able to operate or control the VIE, which may result in deconsolidation of the VIE. The
Company believes the possibility that it will no longer be able to control and consolidate its VIE will occur as a result of the aforementioned
risks and uncertainties is remote.

 F- 9

 The Company has aggregated the financial information
of Dongfang Paper in the table below. The aggregate carrying value of Dongfang Paper's assets and liabilities (after elimination
of intercompany transactions and balances) in the Company's consolidated balance sheets as of December 31, 2023, and 2022 are as
follows:

 December
 31,

 2023

 2022

 ASSETS

 Current Assets

 Cash and bank balances

 $
 2,807,608

 $
 3,427,717

 Restricted cash

 472,983

 -

 Accounts receivable

 575,526

 -

 3,555,235

 2,852,553

 Prepayments and other current assets

 18,617,351

 20,134,386

 Due from related parties

 289,173

 7,418,274

 Total current assets

 26,317,876

 33,832,930

 Prepayment on property, plant and equipment

 -

 1,031,502

 Operating lease right-of-use assets, net

 528,648

 672,722

 Finance lease right-of-use assets, net

 -

 1,939,970

 Property, plant, and equipment, net

 158,027,099

 143,534,690

 Deferred tax asset non-current

 -

 -

 Total Assets

 $
 184,873,623

 $
 181,011,814

 LIABILITIES

 Current Liabilities

 Short-term bank loans

 $
 -

 $
 5,598,311

 Current portion of long-term loans

 2,780,014

 4,835,885

 Lease liability

 100,484

 224,497

 Accounts payable

 4,991

 5,025

 Advance from customers

 136,167

 -

 Accrued payroll and employee benefits

 231,568

 143,156

 Other payables and accrued liabilities

 11,843,973

 4,887,584

 Income taxes payable

 -

 417,906

 Total current liabilities

 15,097,197

 16,112,364

 4,503,932

 40,203

 Deferred gain on sale-leaseback

 -

 52,314

 Lease liability - non-current

 483,866

 579,997

 Total liabilities

 $
 20,084,995

 $
 16,784,878

 F- 10

 The Company and its consolidated subsidiaries
are not required to provide financial support to the VIE, and no creditor (or beneficial interest holders) of the VIE have recourse to
the assets of Company unless the Company separately agrees to be subject to such claims. There are no terms in any agreements or arrangements,
implicit or explicit, which require the Company or its subsidiaries to provide financial support to the VIE. However, if the VIE does
require financial support, the Company or its subsidiaries may, at its option and subject to statutory limits and restrictions, provide
financial support to the VIE.

 (2) Basis of Presentation and Significant Accounting Policies

 Basis of Consolidation

 The consolidated financial statements of the Company
are prepared in accordance with accounting principles generally accepted in the United States of America ("US GAAP"), and
include the assets, liabilities, revenues, expenses and cash flows of all subsidiaries and variable interest entity. All significant inter-company
balances, transactions and cash flows are eliminated on consolidation.

 Foreign Currency Translation

 The Company accounts for foreign currency translation
pursuant to ASC Topic 830, Foreign Currency Matters. The functional currency of Dongfang Paper and Baoding Shengde is the Chinese
Yuan Renminbi ("RMB"). Monetary assets and liabilities denominated in currencies other than RMB are translated into RMB at
the rates of exchange ruling at the balance sheet date. Transactions in currencies other than RMB are converted into RMB at the applicable
rates of exchange prevailing the transactions occurred. Transaction gains and losses are recognized in the consolidated statements of
income. The functional currency of IT Tech Packaging and Shengde Holdings is United States dollars. Monetary assets and liabilities denominated
in currencies other than United States dollars are translated into United States dollars at the rates of exchange ruling at the balance
sheet date. Translation in currencies other than United States dollars are converted into United States dollars at the applicable rates
of exchange prevailing when the transactions occurred. Transaction gains or losses are recognized in the consolidated statement of income.

 Under ASC Topic 830-30, all assets and liabilities
are translated into United States dollars using the current exchange rate at the end of each fiscal period. The current exchange rates
used by the Company as of December 31, 2023, and 2022 to translate the Chinese RMB to the U.S. Dollars are 7.0827:1, and 6.9646:1, respectively.
Revenues and expenses are translated using the average exchange rates prevailing throughout the respective years at 7.0558:1 and 6.75731
for the years ended December 31, 2023, and 2022, respectively. Translation adjustments are included in other comprehensive income (loss).

 Use of Estimates

 The preparation of consolidated financial statements
in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities
as of December 31, 2023, and 2022, and revenues and expenses for the years ended December 31, 2023, and 2022. The most significant estimates
relate to allowance for uncollectible accounts receivable, inventory valuation, useful lives and impairment for property, plant and equipment,
valuation allowance for deferred tax assets and contingencies. Actual results could differ from those estimates made by management.

 F- 11

 Accounts Receivable

 Trade accounts receivable are recorded on shipment
of products to customers. The trade receivables are all without customer collateral and interest is not accrued on past due accounts.
Periodically, management reviews the adequacy of its provision for doubtful accounts based on historical bad debt expense results and
current economic conditions using factors based on the aging of its accounts receivable. Additionally, the Company may identify additional
allowance requirements based on indications that a specific customer may be experiencing financial difficulties. Actual bad debt results
could differ materially from these estimates. As of December 31, 2023, and 2022, the balance of allowance for doubtful accounts was $ 881,878
and $ 69,053, respectively; and the movement of the provision of the doubtful accounts is as below. While management uses the best information
available upon which to base estimates, future adjustments to the allowance may be necessary if economic conditions differ substantially
from the assumptions used for the purposes of analysis.

 Allowance of doubtful accounts

 2023

 2022

 Opening balance

 $
 881,878

 $
 69,053

 Provision (Reversal) for the year

 ( 858,689
)

 843,779

 Exchange difference

 ( 11,444
)

 ( 30,954
)

 Closing balance

 $
 11,745

 $
 881,878

 Inventories consist
principally of raw materials and finished goods, and are stated at the lower of cost (average cost method) or market. Cost includes labor,
raw materials, and allocated overhead. Provision in inventories were $ 2,959 and $ nil for the years
ended December 31, 2023, and 2022, respectively.

 Property, Plant, and Equipment

 Property, plant, and equipment are stated at cost
less accumulated depreciation and any impairment losses. Major renewals, betterments, and improvements are capitalized to the asset accounts
while replacements, maintenance, and repairs, which do not improve or extend the lives of the respective assets, are expensed to operations.
At the time property, plant, and equipment are retired or otherwise disposed of, the asset and related accumulated depreciation or amortization
accounts are relieved of the applicable amounts. Gains or losses from retirements or sales are credited or charged to operations.

 Construction-in-progress is stated at cost and
capitalized as expenses are incurred or as payments are made pursuant to relevant construction contracts. Contract retention is recorded
as accrued liability. Construction in progress is not depreciated until project completion and the constructed property being placed in
service, at which time the capitalized balance will be transferred to appropriate account of property, plant and equipment.

 The Company depreciates property, plant, and equipment using the straight-line
method as follows:

 Land use right

 Over the lease term

 Building and improvements

 30 years

 Machinery and equipment

 5 - 15 years

 Vehicles

 15 years

 Valuation of long-lived asset

 The Company reviews the carrying value of long-lived
assets to be held and used when events and circumstances warrants such a review. The carrying value of a long-lived asset is considered
impaired when the anticipated undiscounted cash flow from such asset is separately identifiable and is less than its carrying value. In
that event, a loss is recognized based on the amount by which the carrying value exceeds the fair market value of the long-lived asset
and intangible assets. Fair market value is determined primarily using the anticipated cash flows discounted at a rate commensurate with
the risk involved. Losses on long-lived assets and intangible assets to be disposed are determined in a similar manner, except that fair
market values are reduced for the cost to dispose.

 F- 12

 Statutory Reserves

 According to the laws and regulations
in the PRC, the Company is required to provide for certain statutory funds, namely, a reserve fund by an appropriation from net profit
after taxation but before dividend distribution based on the local statutory financial statements of the PRC subsidiaries and variable
interest entity prepared in accordance with the PRC accounting principles and relevant financial regulations.

 Each of the Company's wholly owned subsidiary
and variable interest entity in the PRC are required to allocate at least 10 % of its net profit to the reserve fund until the balance
of such fund has reached 50 % of its registered capital. Appropriations of additional reserve fund are determined at the discretion of
its directors. The reserve fund can only be used, upon approval by the relevant authority, to offset accumulated losses or increase capital.

 For the years ended December 31, 2023, and 2022,
IT Tech Packaging made transfers of $ nil to this reserve fund. No statutory reserves were provided for the year ended December 31, 2023,
and 2022. The Company's variable interest entity Dongfang Paper, the statutory reserve account of which has been fully funded for
 50 % of its registered capital in the amount of RMB 75,030,000 (or approximately $ 11,811,470) since December 31, 2010, did not make any
transfer to statutory reserves during the years ended December 31, 2023, and 2022.

 Employee Benefit Plan

 Full time employees of the PRC entities participate
in a government mandated multi-employer defined contribution plan pursuant to which certain pension benefits, medical care, unemployment
insurance and other welfare benefits are provided to employees. The total provision for such employee benefits was $ nil for the years
ended December 31, 2023, and 2022.

 Revenue Recognition

 The Company adopted ASC Topic 606, Revenue
from Contracts with Customers, and all subsequent ASUs that modified ASC 606 on April 1, 2017 using the full retrospective method
which requires the Company to present the financial statements for all periods as if Topic 606 had been applied to all prior periods.
The company derives revenue principally from producing and sales of paper products. Revenue from contracts with customers is recognized
using the following five steps:

 1.
 Identify the contract(s) with a customer;

 2.
 Identify the performance obligations in the contract;

 3.
 Determine the transaction price;

 4.
 Allocate the transaction price to the performance obligations in the contract; and

 5.
 Recognize revenue when (or as) the entity satisfies a performance obligation.

 A contract contains a promise (or promises) to
transfer goods or services to a customer. A performance obligation is a promise (or a group of promises) that is distinct. The transaction
price is the amount of consideration a company expects to be entitled from a customer in exchange for providing the goods or services.

 The unit of account for revenue recognition is
a performance obligation (a good or service). A contract may contain one or more performance obligations. Performance obligations are
accounted for separately if they are distinct. A good or service is distinct if the customer can benefit from the good or service either
on its own or together with other resources that are readily available to the customer, and the good or service is distinct in the context
of the contract. Otherwise, performance obligations are combined with other promised goods or services until the Company identifies a
bundle of goods or services that is distinct. Promises in contracts which do not result in the transfer of a good or service are not performance
obligations, as well as those promises that are administrative in nature, or are immaterial in the context of the contract. The Company
has addressed whether various goods and services promised to the customer represent distinct performance obligations. The Company applied
the guidance of ASC Topic 606-10-25-16 through 18 in order to verify which promises should be assessed for classification as distinct
performance obligations.

 The Company's revenue is primary derived
from sales of paper products. The Company recognizes revenue when goods are delivered, when a formal arrangement exists, the price is
fixed or determinable, the delivery is completed, no other significant obligations of the Company exist, and collectability is reasonably
assured. Goods are considered delivered when customer's truck picks up goods at the Company's finished goods inventory warehouse.

 Shipping Cost

 Substantially all customers use their own trucks
or hire commercial trucking companies to pick up goods from the Company. The Company usually incurs no shipping cost for delivery of goods
to customers. For those rare situations where products are not shipped utilizing customer specified shipping services, the Company charges
customers a shipping fee which is included in net revenues and was not material. Freight-in and handling costs incurred by the Company
with respect to purchased goods are recorded as a component of inventory cost and charged to cost of sales when the inventory items are
sold.

 F- 13

 Advertising

 The Company expenses all advertising and promotion
costs as incurred. The Company incurred $ nil advertising and promotion costs for the years ended December 31, 2023, and 2022.

 Research and development costs

 Research and development costs are expensed as
incurred and included in selling, general and administrative expenses. Research and development expenses incurred $ 90,766 and $ 145,538
for the years ended December 31, 2023, and 2022, respectively.

 Borrowing costs

 Borrowing costs attributable directly to the acquisition,
construction or production of qualifying assets which require a substantial period of time to be ready for their intended use or sale,
are capitalized as part of the cost of those assets. Income earned on temporary investments of specific borrowings pending their expenditure
on those assets is deducted from borrowing costs capitalized. All other borrowing costs are recognized in interest expenses in the period
in which they are incurred.

 Government subsidies

 A government subsidy is not recognized until there
is reasonable assurance that: (a) the enterprise will comply with the conditions attached to the grant; and(b)the grant will be received.
When the Company receives government subsidies but the conditions attached to the grants have not been fulfilled, such government subsidies
are deferred and recorded under other payables and accrued expenses, and other long-term liability. The classification of short-term or
long-term liabilities is depended on the management's expectation of when the conditions attached to the grant can be fulfilled.
For the years ended December 31, 2023, and 2022, the Company received government subsidies of $ nil, which are recognized as subsidy income
in the consolidated statements of income in that fiscal year.

 Income Taxes

 The Company accounts for income taxes pursuant
to ASC Topic 740, Income Taxes. Income taxes are provided on an asset and liability approach for financial accounting and reporting of
income taxes. Any tax paid by subsidiaries during the year is recorded. Current tax is based on the profit or loss from ordinary activities
adjusted for items that are non-assessable or disallowable for income tax purpose and is calculated using tax rates that have been enacted
or substantively enacted at the balance sheet date. ASC Topic 740 also requires the recognition of deferred tax assets and liabilities
for both the expected impact of differences between the financial statements and the tax basis of assets and liabilities, and for the
expected future tax benefit to be derived from tax losses and tax credit carry-forwards. ASC Topic 740 additionally requires the establishment
of a valuation allowance to reflect the likelihood of realization of deferred tax assets. Realization of deferred tax assets, including
those related to the U.S. net operating loss carry-forwards, are dependent upon future earnings, if any, of which the timing and amount
are uncertain.

 The Company adopted ASC Topic 740-10-05, Income
Tax, which provides guidance for recognizing and measuring uncertain tax positions, it prescribes a threshold condition that a tax
position must meet for any of the benefits of the uncertain tax position to be recognized in the financial statements. It also provides
accounting guidance on derecognizing, classification and disclosure of these uncertain tax positions.

 The Company's policy on classification of
all interest and penalties related to unrecognized income tax positions, if any, is to present them as a component of income tax expense.

 Value Added Tax

 Both the PRC subsidiaries and variable interest
entity of the Company are subject to value added tax ("VAT") imposed by the PRC government on its purchase and sales of goods.
The output VAT is charged to customers who purchase goods from the Company and the input VAT is paid when the Company purchases goods
from its vendors. VAT rate is 17 % (before May 1, 2018), 16 % (after May 1, 2018) and 13 % (after April 1, 2019) in general, depending on
the types of products purchased and sold. The input VAT can be offset against the output VAT. Debit balance of VAT payable represents
a credit against future collection of output VAT instead of a receivable due from government.

 Comprehensive Income (Loss)

 The Company presents comprehensive income (loss)
in accordance with ASC Topic 220, Comprehensive Income. ASC Topic 220 states that all items that are required to be recognized
under accounting standards as components of comprehensive income (loss) be reported in the consolidated financial statements. The components
of comprehensive income (loss) were the net income for the years and the foreign currency translation adjustments.

 Earnings Per Share

 Basic earnings per share is computed by dividing
the net income attributable to the common stockholders by the weighted average number of shares of common stock outstanding during the
period. Diluted earnings per share is computed similar to basic earnings per share except that the denominator is increased to include
the number of additional common shares that would have been outstanding if the potential common shares had been issued and if the additional
common shares were dilutive. There were no potentially dilutive securities that were in-the-money that were outstanding during the years
ended December 31, 2023.

 F- 14

 Share-Based Compensation

 The Company uses the fair value recognition provision
of ASC Topic 718, Compensation-Stock Compensation, which requires the Company to expense the cost of employee services received
in exchange for an award of equity instruments based on the grant date fair value of such instruments over the vesting period.

 The Company also applies the provisions of ASC
Topic 505-50, Equity Based Payments to Non-Employees to account for stock-based compensation awards issued to non-employees for
services. Such awards for services are recorded at either the fair value of the consideration received or the fair value of the instruments
issued in exchange for such services, whichever is more reliably measurable.

 Reverse stock split

 On June 9, 2022, the Board of Directors of the
Company approved the Reverse Stock Split, at a ratio of 1-for-10, pursuant to Section 78.207 of the Nevada Revised Statutes ("NRS").
The Reverse Stock Split was effected by the Company filing of a Certificate of Change Pursuant to NRS 78.209 with the Secretary of State
of the State of Nevada on July 7, 2022. The par value per share of our stock remains unchanged at $ 0.001 per share after the Reverse Stock
Split. All references made to share or per share amounts in the accompanying consolidated financial statements and applicable disclosures
have been retroactively adjusted to reflect the effects of the Reverse Stock Split.

 Fair Value Measurements

 The Company has adopted ASC Topic 820, Fair Value
Measurements and Disclosures, which defines fair value, establishes a framework for measuring fair value in GAAP, and expands disclosures
about fair value measurements. It does not require any new fair value measurement, but provides guidance on how to measure fair value
by providing a fair value hierarchy used to classify the source of the information. It establishes a three-level valuation hierarchy of
valuation techniques based on observable and unobservable inputs, which may be used to measure fair value and include the following:

 Level 1 - Quoted prices in active markets for identical assets or liabilities.

 Level 2 - Inputs other than Level 1 that are observable,
either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active;
or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or
liabilities.

 Level 3 - Unobservable inputs that are supported by little or no market
activity and that are significant to the fair value of the assets or liabilities.

 Classification within the hierarchy is determined based on the lowest
level of input that is significant to the fair value measurement.

 The Company estimates the fair value of financial
instruments using the available market information and valuation methods. Considerable judgment is required in estimating fair value.
Accordingly, the estimates of fair value may not be indicative of the amounts that the Company could realize in a current market exchange.
As of December 31, 2023, and 2022, the carrying value of the Company's short term financial instruments, such as cash and bank balances,
accounts receivable, accounts and notes payable, short-term bank loans and balance due to related parties, approximate at their fair values
because of the short maturity of these instruments; while loans from credit union approximates at their fair value as the interest rates
thereon are close to the market rates of interest published by the People's Bank of China.

 Derivative liabilities are measured at fair value on a recurring basis.

 Non-Recurring Fair Value Measurements

 The Company reviews long-lived assets for impairment
annually or more frequently if events or changes in circumstances indicate the possibility of impairment. For the continuing operations,
long-lived assets are measured at fair value on a nonrecurring basis when there is an indicator of impairment, and they are recorded at
fair value only when impairment is recognized. For discontinued operations, long-lived assets are measured at the lower of carrying amount
or fair value less cost to sell. The fair value of these assets was determined using models with significant unobservable inputs which
were classified as Level 3 inputs, primarily the discounted future cash flow.

 Recently issued accounting pronouncements

 In October 2021, the FASB issued ASU No. 2021-08,
Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers (ASU 2021-08),
which clarifies that an acquirer of a business should recognize and measure contract assets and contract liabilities in a business combination
in accordance with Topic 606, Revenue from Contracts with Customers. The new amendments are effective for fiscal years beginning after
December 15, 2023, including interim periods within those fiscal years. The amendments should be applied prospectively to business combinations
occurring on or after the effective date of the amendments, with early adoption permitted. The Company does not expect the adoption of
this standard to have a material impact on its consolidated financial statements.

 F- 15

 (3) Restricted Cash

 Restricted cash of $ 472,983 as of December 31,
2023 was presented for the cash deposited at the Industrial and Commercial Bank of China of Tengsheng Paper. The deposit was restricted
due to the personal legal proceeding of Mr. Ping, the Legal Representative of Tengsheng Paper.

 (4) Inventories

 Raw materials inventory includes mainly recycled
paper and gas. Finished goods include mainly products of corrugating medium paper and offset printing paper. Inventories consisted of
the following as of and December 31, 2023, and 2022:

 2023

 2022

 Raw Materials

 Recycled paper board

 $
 198,744

 $
 1,258,161

 Recycled white scrap paper

 10,647

 10,809

 Gas

 21,428

 42,237

 Base paper and other raw materials

 142,149

 160,229

 372,968

 1,471,436

 Semi-finished Goods

 300,207

 132,810

 Finished Goods

 2,885,019

 1,268,376

 Total inventory, gross

 3,558,194

 Inventory reserve

 ( 2,959
)

 -

 Total inventory, net

 $
 3,555,235

 $

 (5) Prepayments and other current assets

 Prepayments and other current assets consisted
of the following as of December 31, 2023, and 2022:

 2023

 2022

 Prepaid land lease

 $
 -

 $
 172,300

 Prepayment for purchase of materials

 5,446,823

 12,941,951

 Value-added tax recoverable

 13,409,459

 13,640,868

 Prepaid gas

 116,372

 27,462

 Others

 8,636

 424,546

 $
 18,981,290

 $
 27,207,127

 (6) Property, plant and equipment

 As of December 31, 2023, and 2022, property, plant
and equipment consisted of the following:

 2023

 2022

 Property, Plant, and Equipment:

 Land use rights

 $
 81,504,608

 $
 57,686,220

 Building and improvements

 67,939,059

 68,300,987

 Machinery and equipment

 158,629,858

 158,498,316

 Vehicles

 348,209

 681,617

 Construction in progress

 -

 1,239,698

 Totals

 308,421,734

 286,406,838

 Less: accumulated depreciation and amortization

 ( 144,447,712
)

 ( 134,836,940
)

 Property, Plant and Equipment, net

 $
 163,974,022

 $
 151,569,898

 F- 16

 As of December 31, 2023, land use rights represented
twenty-three parcel of state-owned lands located in Xushui District and Wei County of Hebei Province in China, with lease terms of 50
years expiring from 2061 to 2068.

 As of December 31, 2022, land use rights represented
twenty-three parcel of state-owned lands located in Xushui District of Hebei Province in China, with lease terms of 50 years expiring
from 2061 to 2066, respectively.

 As of December 31, 2023 and 2022, certain property,
plant and equipment of Dongfang Paper with net values of $ nil and $ 280,466, respectively, have been pledged pursuant to a long-term loan
from credit union of Dongfang Paper. Land use right of Tengsheng Paper with net value of $ 4,910,034 and $ 5,111,014, respectively, as of
December 31, 2023 and 2022 was pledged for a long-term loan from credit union of Baoding Shengde. In addition, land use right of Tengsheng
Paper with net value of $ 3,781,366 and $ 3,948,953, respectively, as of December 31, 2023 and 2022 was pledged for another long-term loan
from credit union of Baoding Shengde. Land use right of Dongfang Paper with net value of $ 5,135,132 as of December 31, 2023 was pledged
for a long-term loan from credit union of Tengsheng Paper. See "Short-term bank loans" under Note (8), Loans Payable, for
details of the transaction and asset collaterals.

 Depreciation and amortization of property, plant
and equipment was $ 14,225,990 and $ 14,788,036 for the years ended December 31, 2023, and 2022, respectively. Loss from disposal and impairment
of property, plant and equipment of $ 1,500,298 and $ nil were recorded for the years ended December 31, 2023, and 2022.

 (7) Leases

 Financing with Sale-Leaseback

 The Company entered into a sale-leaseback arrangement
(the "Lease Financing Agreement") with TAC Leasing Co., Ltd.("TLCL") on August 6, 2020, for a total financing
proceeds in the amount of RMB 16 million (approximately US$ 2.3 million). Under the sale-leaseback arrangement, Tengsheng Paper sold the
Leased Equipment to TLCL for 16 million (approximately US$ 2.3 million). Concurrent with the sale of equipment, Tengsheng Paper leases
back the equipment sold to TLCL for a lease term of three years. At the end of the lease term, Tengsheng Paper may pay a nominal purchase
price of RMB 100 (approximately $ 14) to TLCL and buy back the Leased Equipment. The Leased Equipment in amount of $ 2,349,452 was recorded
as right of use assets and the net present value of the minimum lease payments was recorded as lease liability and calculated with TLCL's
implicit interest rate of 15.6 % per annum and stated at $ 567,099 at the inception of the lease on August 17, 2020.

 Tengsheng Paper made payments due according to
the schedule. On July 17, 2023, the Company made a final payment on outstanding obligations and bought back the Lease Equipment at nominal
price according to the agreement. The lease assets were reclassified as own assets and balance of Leased Equipment net of amortization
were $ nil and $ 1,939,970 as of December 31, 2023 and 2022, respectively.

 Operating lease as lessor

 The Company has a non-cancellable agreement to
lease plant to tenant under operating lease for 1 year from November 2023 to November 2024. The lease does not contain contingent payments.
The rental income of the year was paid in advance by the tenant in December 2023.

 Operating lease as lessee

 The Company leases space under non-cancelable
operating leases for plant and production equipment. The lease does not have significant rent escalation holidays, concessions, leasehold
improvement incentives, or other build-out clauses. Further, the lease does not contain contingent rent provisions. The lease include
option to renew in condition that it is agreed by the landlord before expiry. Therefore, the majority of renewals to extend the lease
terms are not included in its right-of-use assets and lease liabilities as they are not reasonably certain of exercise. The Company regularly
evaluate the renewal options and when they are reasonably certain of exercise, the Company includes the renewal period in its lease term.

 As the Company's leases do not provide an
implicit rate, it uses its incremental borrowing rate based on the information available at the lease commencement date in determining
the present value of the lease payments.

 F- 17

 The components of the Company's lease expense
are as follows:

 2023

 RMB

 Operating lease cost

 Short-term lease cost

 -

 Lease cost

 Supplemental cash flow information related to
its operating lease was as follows for the period ended December 31, 2023:

 2023

 RMB

 Cash paid for amounts included in the measurement of lease liabilities:

 Operating cash outflow from operating lease

 Maturities of its lease liabilities for all operating
lease are as follows as of December 31, 2023:

 2024

 2025

 2026

 2027

 2028

 Thereafter

 -

 Total operating lease payments

 $
 705,945

 Less: Interest

 ( 121,595
)

 Present value of lease liabilities

 584,350

 Less: current portion, record in current liabilities

 ( 100,484
)

 Present value of lease liabilities

 483,866

 The weighted average remaining lease terms and
discount rates for all of its operating leases were as follows as of December 31, 2023:

 2023

 Remaining lease term and discount rate:

 RMB

 Weighted average remaining lease term (years)

 4.6

 Weighted average discount rate

 7.56
 %

 (8) Loans Payable

 Short-term bank loans

 2023

 2022

 Industrial and Commercial Bank of China ("ICBC") Loan 1

 $
 -

 $
 5,023,978

 ICBC Loan 2

 -

 287,167

 ICBC Loan 3

 -

 143,583

 China Construction Bank Loan

 -

 143,583

 ICBC Loan 4

 423,567

 -

 ICBC Loan 5

 2,824

 -

 ICBC Loan 6

 70,594

 -

 ICBC Loan 7

 350,149

 -

 Total short-term bank loans

 $
 423,567

 $
 5,598,311

 F- 18

 On November 10, 2022, the Company entered into
a working capital loan agreement with the ICBC. The loan was secured by the land use right of Dongfang Paper as collateral for the benefit
of the bank and guaranteed by Mr. Liu. The loan bore a fixed interest rate of 4.785 % per annum. The Company repaid $ 71,743 in May 2023
and paid off the remaining balance of the loan in August 2023. The balance of the loan was $ nil and $ 5,023,978 as of December 31, 2023
and 2022, respectively.

 On November 30, 2022, the Company entered into
a working capital loan agreement with the ICBC, with a balance of $ nil and $ 287,167 as of December 31, 2023 and 2022, respectively. The
loan bore an interest rate of 4.25 % per annum. The loan was fully repaid in May 2023.

 On November 30, 2022, the Company entered into
a working capital loan agreement with the ICBC, with a balance of $ nil and $ 143,583 as of December 31, 2023 and 2022, respectively. The
loan bore an interest rate of 4.25 % per annum. The loan was fully repaid in May 2023.

 On July 29, 2022, the Company entered into a working
capital loan agreement with the China Construction Bank, with a balance of $ nil and $ 143,583 as of December 31, 2023 and 2022, respectively.
The loan bore a fixed interest rate of 3.95 % per annum. The loan was fully repaid in July 2023.

 On May 29, 2023, the Company entered into a working
capital loan agreement with the ICBC, to borrow $ 423,567 at a fixed interest rate of 4.25 % per annum. The loan was repaid in November
2023.

 On June 29, 2023, the Company entered into a working
capital loan agreement with the ICBC, to borrow $ 423,567 at a fixed interest rate of 3.55 % per annum. The loan was repaid in September
2023..

 On September 15, 2023, the Company entered into
a working capital loan agreement with the ICBC, with a balance of $ 2,824 as of December 31, 2023. The loan bears a fixed interest rate
of 3.45 % per annum. The loan will be due by September 14, 2024.

 On September 22, 2023, the Company entered into
a working capital loan agreement with the ICBC, with a balance of $ 70,594 as of December 31, 2023. The loan bears a fixed interest rate
of 3.45 % per annum. The loan will be due by September 21, 2024.

 On September 22, 2023, the Company entered into
a working capital loan agreement with the ICBC, with a balance of $ 350,149 as of December 31, 2023. The loan bears a fixed interest rate
of 3.45 % per annum. The loan will be due by September 21, 2024.

 As of December 31, 2022, there were guaranteed
short-term borrowings of $ 5,023,978 and unsecured bank loans of $ 574,333. As of December 31, 2023, there were guaranteed short-term borrowings
of $ nil and unsecured bank loans of $ 423,567.

 The average short-term borrowing rates for the years ended December
31, 2023, and 2022 were approximately 4.48 % and 4.72 %, respectively.

 As of December 31, 2023, and 2022, long-term loan balance is $ 11,378,429
and $ 9,040,002, respectively.

 2023

 2022

 Rural Credit Union of Xushui District Loan 1

 $
 -

 $
 1,234,816

 Rural Credit Union of Xushui District Loan 2

 3,528,315

 3,589,582

 Rural Credit Union of Xushui District Loan 3

 2,259,026

 2,297,332

 Rural Credit Union of Xushui District Loan 4

 1,835,458

 1,866,582

 Rural Credit Union of Xushui District Loan 5

 2,541,404

 -

 Rural Credit Union of Xushui District Loan 6

 1,214,226

 -

 Yujiangna

 -

 51,690

 Total

 11,378,429

 9,040,002

 Less: Current portion of long-term loans

 ( 6,874,497
)

 ( 4,835,884
)

 $
 4,503,932

 $
 4,204,118

 F- 19

 As of Dec 31, 2023, the Company's long-term debt repayments
for the next coming years were as follows:

 Fiscal year

 2024

 6,874,497

 2025

 3,374,419

 2026 & after

 1,129,513

 Total

 11,378,429

 On April 16, 2014, the Company entered into a
loan agreement with the Rural Credit Union of Xushui District for a term of 5 years, which was originally due in various installments
from June 21, 2014 to November 18, 2018. The loan was guaranteed by an independent third party. Interest payment was due quarterly and
bore a rate of 7.68 % per annum. Effective from November 15, 2022, the interest rate was reduced to 7 % per annum. On November 6, 2018,
the loan was renewed for additional 5 years and will be due and payable in various installments from December 21, 2018 to November 5,
2023. The loan was fully repaid in December 2023. As of December 31, 2023 and 2022, total outstanding loan balance was $ nil and $ 1,234,816,
respectively, which are presented as current liabilities in the consolidated balance sheet.

 On July 15, 2013, the Company entered into a loan
agreement with the Rural Credit Union of Xushui District for a term of 5 years, which was originally due and payable in various installments
from December 21, 2013 to July 26, 2018. On June 21, 2018, the loan was extended for additional 5 years and was due and payable in various
installments from December 21, 2018 to June 20, 2023. On August 24, 2023, the loan was extended for another 3 years and will be due and
payable on August 24, 2026. The loan is secured by certain of the Company's manufacturing equipment with net book value of $ nil
and $ 280,466 as of December 31, 2023 and 2022, respectively. Interest payment is due monthly and bore a rate of 7.68 % per annum. Effective
from November 15, 2022, the interest rate was reduced to 7 % per annum. As of December 31, 2023 and 2022, the total outstanding loan balance
was $ 3,528,315 and $ 3,589,582. Out of the total outstanding loan balance, current portion amounted was $ 1,269,290, which is presented
as current liabilities in the consolidated balance sheet and the remaining balance of $ 2,259,025 is presented as non-current liabilities
in the consolidated balance sheet as of December 31, 2023.

 On April 17, 2019, the Company entered into a
loan agreement with the Rural Credit Union of Xushui District for a term of 2 years, which was due and payable in various installments
from August 21, 2019 to April 16, 2021. The loan was renewed on March 22, 2021 and December 24, 2021 and extended for additional 3 years
in total, which will be due on April 16, 2024 according to the new schedule. The loan is secured by Tengsheng Paper with its land use
right as collateral for the benefit of the credit union. Interest payment is due quarterly and bore a rate of 7.68 % per annum. Effective
from November 15, 2022, the interest rate was reduced to 7 % per annum. As of December 31, 2023 and 2022, the total outstanding loan balance
was $ 2,259,026 and $ 2,297,332, respectively, which are presented as current liabilities and non-current liabilities in the consolidated
balance sheet as of December 31, 2023 and 2022, respectively.

 On December 12, 2019, the Company entered into
a loan agreement with the Rural Credit Union of Xushui District for a term of 2 years, which is due and payable in various installments
from June 21, 2020 to December 11, 2021. The loan was renewed on March 22, 2021 and December 24, 2021 and extended for additional 3 years
in total, which will be due on December 11, 2024 according to the new schedule. The loan is secured by Tengsheng Paper with its land use
right as collateral for the benefit of the credit union. Interest payment is due monthly and bore a rate of 7.56 % per annum. Effective
from November 15, 2022, the interest rate was reduced to 7 % per annum. As of December 31, 2023 and 2022, the total outstanding loan balance
was $ 1,835,458 and $ 1,866,582, respectively, which are presented as current liabilities and non-current liabilities in the consolidated
balance sheet as of December 31, 2023 and 2022, respectively.

 On July 1, 2022, the Company entered into a loan
agreement with Jiangna Yu, a customer of the Company, pursuant to which the Company borrowed RMB 400,000 from Jiangna Yu for a term of
five years. The loan is payable in monthly installment of RMB 10,667 from July 2022 to July 2027. The company repaid the loan in November
2023. As of December 31, 2023 and 2022, the total outstanding loan balance was $ nil and $ 51,690, respectively. Out of the total outstanding
loan balance, current portion amounted $ nil and $ 11,486, respectively, which are presented as current liabilities and the remaining balance
of $ nil and $ 40,204 are presented as non-current liabilities in the consolidated balance sheet as of December 31, 2023 and 2022, respectively.

 On February 26, 2023, the Company entered into
a loan agreement with the Rural Credit Union of Xushui District for a term of 2 years, which is due and payable in various installments
from August 21, 2023 to February 24, 2025. The loan is secured by Dongfang Paper with its land use right as collateral for the benefit
of the credit union. Interest payment is due monthly and bore a rate of 7 % per annum. As of December 31, 2023, the total outstanding loan
balance was $ 2,541,404. Out of the total outstanding loan balance, current portion amounted was $ 1,284,820, which is presented as current
liabilities in the consolidated balance sheet and the remaining balance of $ 1,256,584 is presented as non-current liabilities in the consolidated
balance sheet as of December 31, 2023.

 On December 5, 2023, the Company entered into
a loan agreement with the Rural Credit Union of Xushui District for a term of 3 years, which was due in various installments from June
21, 2024 to December 5, 2026. The loan was guaranteed by an independent third party. Interest payment was due monthly and bore a rate
of 7 % per annum. As of December 31, 2023, total outstanding loan balance was $ 1,214,226. Out of the total outstanding loan balance, current
portion amounted $ 225,903, which is presented as current liabilities and the remaining balance of $ 988,323 is presented as non-current
liabilities in the consolidated balance sheet as of December 31, 2023.

 Total interest expenses for the short-term bank
loans and long-term loans for the years ended December 31, 2023, and 2022 were $ 977,678 and $ 988,997 respectively.

 F- 20

 (9) Related Party Transactions

 Mr. Zhenyong Liu has loaned money to Dongfang
Paper for working capital purposes over a period of time. On January 1, 2013, Dongfang Paper and Mr. Zhenyong Liu renewed the three-year
term loan previously entered on January 1, 2010, and extended the maturity date further to December 31, 2015. On December 31, 2015, the
Company paid off the loan of $ 2,249,279, together with interest of $ 391,374 for the period from 2013 to 2015. Approximately $ 361,915 and
$ 368,052 of interest were outstanding to Mr. Zhenyong Liu, which were recorded in other payables and accrued liabilities as part of the
current liabilities in the consolidated balance sheet as of December 31, 2023, and 2022, respectively.

 On December 10, 2014, Mr. Zhenyong Liu provided
a loan to the Company, amounted to $ 8,742,278 to Dongfang Paper for working capital purpose with an interest rate of 4.35 % per annum,
which was based on the primary lending rate of People's Bank of China. The unsecured loan was provided on December 10, 2014, and
would be originally due on December 10, 2017. During the year of 2016, the Company repaid $ 6,012,416 to Mr. Zhenyong Liu, together with
interest of $ 288,596. In February 2018, the company paid off the remaining balance, together with interest of $ 20,400. As of December
31, 2023, and 2022, approximately $ 42,357 and $ 43,075 of interest were outstanding to Mr. Zhenyong Liu, which was recorded in other payables
and accrued liabilities as part of the current liabilities in the consolidated balance sheet.

 On March 1, 2015, the Company entered an agreement
with Mr. Zhenyong Liu which allows Dongfang Paper to borrow from the CEO an amount up to $ 17,201,342 (RMB 120,000,000) for working capital
purposes. The advances or funding under the agreement are due three years from the date each amount is funded. The loan is unsecured and
carries an annual interest rate set on the basis of the primary lending rate of the People's Bank of China at the time of the borrowing.
On July 13, 2015, an unsecured amount of $ 4,324,636 was drawn from the facility. On October 14, 2016 an unsecured amount of $ 2,883,091
was drawn from the facility. In February 2018, the company repaid $ 1,507,432 to Mr. Zhenyong Liu. The loan would be originally due on
 July 12, 2018. Mr. Zhenyong Liu agreed to extend the loan for additional 3 years and the remaining balance will be due on July 12, 2021.
On November 23, 2018, the company repaid $ 3,768,579 to Mr. Zhenyong Liu, together with interest of $ 158,651. In December 2019, the company
paid off the remaining balance, together with interest of 94,636. As of December 2023, and 2022, the outstanding interest was $ 194,047
and $ 197,338, respectively, which was recorded in other payables and accrued liabilities as part of the current liabilities in the consolidated
balance sheet.

 As of December 31, 2023, and 2022, total amount
of loans due to Mr. Zhenyong Liu were $ nil. The interest expense incurred for such related party loans are $ nil for the years ended December
31, 2023, and 2022. The accrued interest owe to Mr. Zhenyong Liu was approximately $ 598,319 and $ 608,465, as of December 31, 2022, and
2021, respectively, which was recorded in other payables and accrued liabilities.

 On December 8, 2021, the Company entered into
an agreement with Mr. Zhenyong Liu, which allows Mr. Zhenyong Liu to borrow from the Company an amount of $ 6,507,431 (RMB 44,089,085).
The loan is unsecured and carries a fixed interest rate of 3 % per annum. The loan was repaid by Mr. Zhenyong Liu in February 2022.

 In October 2022 and November 2022, the Company
entered into two agreements with Mr. Zhenyong Liu, which allowed Mr. Zhenyong Liu to borrow from the Company an amount of $ 7,059,455 (RMB 50,000,000)
in total. The loans were unsecured and carried a fixed interest rate of 4.35 % per annum. $ 4,235,673 (RMB 30,000,000) was repaid by Mr.
Zhengyong Liu in August 2023 and the remaining balance was repaid in December 2023. Interest income of the loan for the year ended December
31, 2023 was $ 290,275.

 As of December 31, 2023, and 2022, amount due
to shareholder are $ 727,433, which represent funds from shareholders to pay for various expenses incurred in the U.S. The amount is due
on demand with interest free.

 F- 21

 (10) Other payables and accrued liabilities

 Other payables and accrued liabilities consist of the following

 2023

 2022

 Accrued electricity

 $
 3,054

 $
 3,036

 Accrued rental

 -

 56,646

 Value-added tax payable

 69,053

 Accrued interest to a related party

 598,319

 608,465

 Payable for purchase of property, plant and equipment

 11,175,858

 3,294,940

 Accrued commission to salesmen

 47,040

 19,524

 Accrued bank loan interest

 1,070,708

 1,595,354

 Others

 16,842

 18,540

 Totals

 $
 12,912,517

 $
 5,665,558

 (11) Derivative Liabilities

 The Company analyzed the warrant for derivative
accounting consideration under ASC 815, " Derivatives and Hedging, and hedging, " and determined that the instrument
should be classified as a liability since the warrant becomes effective at issuance resulting in there being no explicit limit to the
number of shares to be delivered upon settlement of the above conversion options.

 ASC 815 requires we assess the fair market value
of derivative liability at the end of each reporting period and recognize any change in the fair market value as other income or expense
item.

 The Company determined our derivative liabilities
to be a Level 3 fair value measurement and used the Black-Scholes pricing model to calculate the fair value as of December 31, 2023. The
Black-Scholes model requires six basic data inputs: the exercise or strike price, time to expiration, the risk-free interest rate, the
current stock price, the estimated volatility of the stock price in the future, and the dividend rate. Changes to these inputs could produce
a significantly higher or lower fair value measurement. The fair value of each warrant is estimated using the Black-Scholes valuation
model. The following weighted-average assumptions were used in the December 31, 2023:

 Year ended December 31,

 2023

 Expected term

 0.93 - 2.75

 Expected average volatility

 74 % - 102 %

 Expected dividend yield

 -

 Risk-free interest rate

 0.19 % - 4.01 %

 The following table summarizes the changes in the derivative liabilities during the year ended December 31, 2023:

 Fair Value Measurements Using Significant Observable Inputs (Level 3)

 Balance at December 31, 2022

 $
 646,283

 Change in fair value of derivative liability

 ( 646,229
)

 Balance at December 31, 2023

 $

 The following table summarizes the loss
on derivative liability included in the income statement for the year ended December 31, 2023 and 2022, respectively.

 2023

 2022

 Day one loss due to derivative liabilities as warrant

 $
 -

 $
 -

 (Gain) Loss on change in fair value of derivative liability

 ( 646,229
)

 ( 1,417,251
)

 ( 646,229
)

 ( 1,417,251
)

 F- 22

 (12) Common Stock

 Issuance of common stock to investors

 On January 20, 2021, the Company offered and sold
to certain institutional investors an aggregate of 2,618,182 shares of common stock and 2,618,182 warrants to purchase up to 2,618,182
shares of common stock in a best-efforts public offering for gross proceeds of approximately $ 14.4 million. The purchase price for each
share of common stock and the corresponding warrant was $ 5.5. The exercise price of the warrant was $ 5.5 per share.

 On March 1, 2021, the Company offered and sold
to the public investors an aggregate of 2,927,786 shares of common stock and 1,463,893 warrants to purchase up to 1,463,893 shares of
common stock in a firm commitment underwritten public offering for gross proceeds of approximately $ 21.9 million. The purchase price for
each share of common stock and accompanying warrant was $ 7.5. The exercise price of the warrant was $ 7.5 per share.

 Reverse stock split

 On June 9, 2022, the Board of Directors of the
Company approved the Reverse Stock Split, at a ratio of 1-for-10, pursuant to Section 78.207 of the Nevada Revised Statutes ("NRS").
The Reverse Stock Split was affected by the Company filing of a Certificate of Change Pursuant to NRS 78.209 with the Secretary of State
of the State of Nevada on July 7, 2022. The par value per share of our stock remains unchanged at $ 0.001 per share after the Reverse Stock
Split. All references made to share or per share amounts in the accompanying consolidated financial statements and applicable disclosures
have been retroactively adjusted to reflect the effects of the Reverse Stock Split.

 Issuance of common stock pursuant to the 2021 Incentive Stock Plan

 On August 15, 2022, the Company granted an aggregate
of 150,000 shares of common stock under its compensatory incentive plans to fifteen employees, as awards under the 2021 Incentive Stock
Plan. Please see Note (16), Stock Incentive Plans for more details. Total fair value of the stock was calculated at $ 156,000 as of the
date of grant.

 (13) Warrants

 On April 29, 2020, the Company and certain institutional
investors entered into a securities purchase agreement, as amended on May 4, 2020 (the "2020 Purchase Agreement"), pursuant
to which the Company agreed to sell to such investors an aggregate of 440,000 shares of common stock and warrants to purchase up to 440,000
shares of common stock in a concurrent private placement (the "May 2020 Warrants"). The exercise price of the May 2020 Warrant
is $ 7.425 per share. These warrants become exercisable on July 23, 2020 and have a term of exercise equal to five years and six months
from the date of issuance till July 23, 2025. 88,000 May 2020 Warrants were exercised in February 2021 at the exercise price of $ 7.425
per share and 352,000 May 2020 Warrants were outstanding as of December 31, 2023.

 On January 20, 2021, the Company offered and sold
to certain institutional investors an aggregate of 2,618,182 shares of common stock and 2,618,182 warrants to purchase up to 2,618,182
shares of common stock (the "January 2021 Warrants"). The January 2021 Warrants became exercisable on January 20, 2021 at
an exercise price of $ 5.5 and will expire on January 20, 2026. 1,410,690 January 2021 Warrants were exercised in January and February
of 2021 at the exercise price of $ 5.5 per share. 1,207,492 January 2021 Warrants were outstanding as of December 31, 2023.

 On March 1, 2021, the Company offered and sold
to the public investors an aggregate of 2,927,786 shares of common stock and 1,463,893 warrants to purchase up to 1,463,893 shares of
common stock (the "March 2021 Warrants"). The March 2021 Warrants became exercisable on March 1, 2021 at an exercise price
of $ 7.5 and will expire on March 1, 2026. 6,750 March 2021 Warrants were exercised in January and March 2021 at the exercise price of
$ 7.5 per share and 1,457,143 March 2021 Warrants were outstanding as of December 31, 2023.

 The Company classified warrant as liabilities and accounted for the
issuance of the warrants as a derivative.

 F- 23

 A summary of stock warrant activities is as below:

 December 31, 2023

 Weight
 average
 exercise

 Number

 price

 Outstanding and exercisable at beginning of the period

 3,016,635

 $
 6.6907

 Issued during the period

 -

 Exercised during the period

 -

 Cancelled or expired during the period

 -

 Outstanding and exercisable at end of the period

 3,016,635

 $
 6.6907

 The following table summarizes information relating to outstanding
and exercisable warrants as of December 31, 2023.

 Warrants Outstanding

 Warrants Exercisable

 Weighted

 Average

 Weighted

 Weighted

 Remaining

 Average

 Average

 Number of

 Contractual life

 Exercise

 Number of

 Exercise

 Shares

 (in years)

 Price

 Shares

 Price

 3,016,635

 2.09

 $
 6.6907

 3,016,635

 $
 6.6907

 Aggregate intrinsic value is the sum of the amounts
by which the quoted market price of the Company's stock exceeded the exercise price of the warrants at December 31, 2023 for those
warrants for which the quoted market price was in excess of the exercise price ("in-the-money" warrants). The intrinsic value
of the warrants as of December 31, 2023 and 2022 are $ nil.

 (14) Earnings Per Share

 For the years ended December 31, 2023, and 2022, basic and diluted
net income per share are calculated as follows:

 2023

 2022

 Basic loss per share

 Net loss for the year - numerator

 $
)

 $
)

 Weighted average common stock outstanding - denominator

 9,972,788

 Net loss per share

 $
 ( 0.99
)

 $
 ( 1.66
)

 Diluted loss per share

 Net loss for the year - numerator

 $
)

 $
)

 Weighted average common stock outstanding - denominator

 9,972,788

 Effect of dilution

 -

 -

 Weighted average common stock outstanding - denominator

 9,972,788

 Diluted loss per share

 $
 ( 0.99
)

 $
 ( 1.66
)

 F- 24

 (15) Income Taxes

 United States

 The Company and Shengde Holdings are incorporated in the State
of Nevada and are subject to the U.S. federal tax and state statutory tax rates up to 34 % and 0 %, respectively. On December 22, 2017,
the U.S. enacted the Tax Cuts and Jobs Act (the "2017 TCJA"), which significantly changed U.S. tax law. The 2017TCJA lowered
the Company's U.S. statutory federal income tax rate from the highest rate of 35 % to 21 % effective January 1, 2018, while also imposing
a deemed repatriation tax on deferred foreign income which requires companies to pay a one-time transition tax on previously unremitted
earnings of non-U.S. subsidiaries that were previously tax deferred and creates new taxes on certain foreign sourced earnings. The SEC
staff issued Staff Accounting Bulletin (SAB) 118, which provides guidance on accounting for enactment effects of the 2017TCJA. SAB 118
provides a measurement period of up to one year from the 2017TCJA's enactment date for companies to complete their accounting under
ASC740. In accordance with SAB 118, to the extent that a company's accounting for certain income tax effects of the 2017TCJA is
incomplete but it is able to determine a reasonable estimate, it must record a provisional estimate in its financial statements. If a
company cannot determine a provisional estimate to be included in its financial statements, it should continue to apply ASC 740 on the
basis of the provisions of the tax laws that were in effect immediately before the enactment of the 2017TCJA.

 Transition tax: The transition tax is a tax on previously untaxed
accumulated and current earnings and profits (E&P) of certain of the Company's non-U.S. subsidiaries. To determine the amount
of the transition tax, the Company must determine, in addition to other factors, the amount of post-1986 E&P of the relevant subsidiaries,
as well as the amount of non-U.S. income taxes paid on such earnings. Further, the transition tax is based in part on the amount of those
earnings held in cash and other specified assets. The Company was able to make a reasonable estimate of the transition tax and recorded
a provisional obligation and additional income tax expense of approximately $ 80,000 in the fourth quarter of 2017. However, the Company
is continuing to gather additional information and will consider additional technical guidance to more precisely compute and account for
the amount of the transition tax. This amount may change when the Company finalizes the calculation of post-1985 foreign E&P previously
deferred from U.S. federal taxation and finalizes the amounts held in cash or other specified assets. The 2017TCJA's transition
tax is payable over eight years beginning in 2018.

 PRC

 Dongfang Paper and Baoding Shengde are PRC operating companies
and are subject to PRC Enterprise Income Tax. Pursuant to the PRC New Enterprise Income Tax Law, Enterprise Income Tax is generally imposed
at a statutory rate of 25 %.

 The provisions for income taxes for the years ended December
31, 2023, and 2022 were as follows:

 2023

 2022

 Provision for Income Taxes

 Current Tax Provision U.S.

 $
 -

 $
 15,062

 Current Tax Provision PRC

 346,954

 1,435,173

 Deferred Tax Provision PRC

 -

 10,261,104

 Total Provision for (Deferred tax benefit)/ Income Taxes

 $
 346,954

 $
 11,711,339

 In addition to the reversible future PRC income
tax benefits stemming from the timing differences of items such as recognition of asset disposal gain or loss and asset depreciation,
the Company was incorporated in the United States and incurred net operating losses of approximately $ 62,499 and $ 530,581 for U.S. income
tax purposes for the years ended December 31, 2023 and 2022, respectively. The net operating loss carried forward may be available to
reduce future years' taxable income. These carry forwards would expire, if not utilized, during the period of 2030 through 2035.
As of December 31, 2023, management believed that the realization of all the U.S. income tax benefits from these losses, which generally
would generate a deferred tax asset if it can be expected to be utilized in the future, appears not more than likely due to the Company's
limited operating history and continuing losses for United States income tax purposes. Accordingly, As of December 31, 2023 and 2022,
the Company provided a 100 % valuation allowance on the U.S. deferred tax asset benefit to reduce the total deferred tax asset to the amount
realizable for the PRC income tax purposes. Management reviews this valuation allowance periodically and will make adjustments as warranted.
 A summary of the otherwise deductible (or taxable) deferred tax items is as follows:

 2023

 2022

 Deferred tax assets (liabilities)

 Depreciation and amortization of property, plant and equipment

 $
 16,922,756

 $
 15,474,485

 Impairment of property, plant and equipment

 585,380

 796,559

 Miscellaneous

 135,714

 615,436

 Net operating loss carryover of PRC company

 274,525

 213,620

 (Gain)/Loss on asset disposal

 ( 64,065)

 -

 Total deferred tax assets

 17,854,310

 17,100,100

 Less: Valuation allowance

 ( 17,854,310
)

 ( 17,100,100
)

 Total deferred tax assets, net

 $
 -

 -

 F- 25

 The following table reconciles the statutory rates to the Company's
effective tax rate as of:

 Year
 Ended

 2023

 2022

 PRC Statutory rate

 25.0

 %

 25.0

 %

 Effect of different tax jurisdiction

 ( 20.7

)

 ( 17.0

)%

 Change in valuation allowance

 ( 7.9

)%

 ( 249.0

)%

 Effective income tax rate

 ( 3.6

)%

 ( 241.0

)%

 During the years ended December 31, 2023, and 2022, the effective income
tax rate was estimated by the Company to be - 3.6 % and - 241.0 %, respectively.

 As of December 31, 2023, except for the one-time
transition tax under the 2017 TCJA which imposes a U.S. tax liability on all unrepatriated foreign E&Ps, the Company does not believe
that its future dividend policy and the available U.S. tax deductions and net operating losses will cause the Company to recognize any
other substantial current U.S. federal or state corporate income tax liability in the near future. Nor does it believe that the amount
of the repatriation of the VIE's earnings and profits for purposes of paying dividends will change the Company's position
that its PRC subsidiary Baoding Shengde and the VIE, Dongfang Paper are considered or are expected to be indefinitely reinvested offshore
to support our future capacity expansion. If these earnings are repatriated to the U.S. resulting in U.S. taxable income in the future,
or if it is determined that such earnings are to be remitted in the foreseeable future, additional tax provisions would be required.

 The Company has adopted ASC Topic 740-10-05, Income
Taxes. To date, the adoption of this interpretation has not impacted the Company's financial position, results of operations, or
cash flows. The Company performed self-assessment and the Company's liability for income taxes includes the liability for unrecognized
tax benefits, interest and penalties which relate to tax years still subject to review by taxing authorities. Audit periods remain open
for review until the statute of limitations has passed, which in the PRC is usually 5 years. The completion of review or the expiration
of the statute of limitations for a given audit period could result in an adjustment to the Company's liability for income taxes.
Any such adjustment could be material to the Company's results of operations for any given quarterly or annual period based, in
part, upon the results of operations for the given period. As of December 31, 2023 and 2022, management considered that the Company had
no uncertain tax positions affecting its consolidated financial position and results of operations or cash flows, and will continue to
evaluate for any uncertain position in future. There are no estimated interest costs and penalties provided in the Company's consolidated
financial statements for the year ended December 31, 2023 and 2022, respectively. The Company's tax positions related to open tax
years are subject to examination by the relevant tax authorities and the major one is the China Tax Authority.

 (16) Stock Incentive Plans

 2021 Incentive Stock Plan

 On November 12, 2021, the Company's Annual
General Meeting adopted and approved the 2021 Omnibus Equity Incentive Plan of IT Tech Packaging, Inc.(the"2021 Plan"). Under
the 2021 ISP, the Company has reserved a total of 150,000 shares of common stock for issuance as or under awards to be made to the directors,
officers, employees and/or consultants of the Company and its subsidiaries. On August 15, 2022, the Company granted an aggregate of 150,000
shares of common stock under its compensatory incentive plans to fifteen employees. Total fair value of the stock was calculated at $ 156,000
as of the date of grant.

 2023 Incentive Stock Plan

 On October 31, 2023, the Company's Annual
General Meeting adopted and approved the 2023 Omnibus Equity Incentive Plan of IT Tech Packaging, Inc.(the"2023 Plan"). Under
the 2023 ISP, the Company has reserved a total of 1,500,000 shares of common stock for issuance as or under awards to be made to the directors,
officers, employees and/or consultants of the Company and its subsidiaries.

 All shares of common stock under the 2023 ISP,
including shares originally authorized by equity holders and shares remaining for future issuance as of December 31, 2023, have been reserved.

 F- 26

 (17) Commitments and Contingencies

 Xushui Land Lease

 The Company leases 32.95 acres of land from a
local government in Xushui District, Baoding City, Hebei, China through a real estate lease with a 30 -year term, which expires on December
31, 2031. The lease requires an annual rental payment of approximately $ 16,943 (RMB 120,000). This lease is renewable at the end of the
30-year term.

 2024

 2025

 2026

 2027

 2028

 Thereafter

 50,828

 Total operating lease payments

 $
 135,543

 Sale of Headquarters Compound Real Properties

 On August 7, 2013, the Company's Audit Committee
and the Board of Directors approved the sale of the land use right of the Headquarters Compound (the "LUR"), the office building
and essentially all industrial-use buildings in the Headquarters Compound (the "Industrial Buildings"), and three employee
dormitory buildings located within the Headquarters Compound (the "Dormitories") to Hebei Fangsheng for cash prices of approximately
$ 2.77 million, $ 1.15 million, and $ 4.31 million respectively. Sales of the LUR and the Industrial Buildings were completed in year 2013.

 In connection with the sale of the Industrial
Buildings, Hebei Fangsheng agreed to lease the Industrial Buildings back to the Company for its original use with an annual rental payment
of approximately $ 141,189 (RMB 1,000,000). The lease was recorded in lease assets and liabilities in the consolidated balance sheet as
of December 31, 2023.

 2024

 2025

 2026

 2027

 2028

 Thereafter

 -

 Total operating lease payments

 $
 705,945

 Less: Interest

 ( 121,595
)

 Present value of lease liabilities

 584,350

 Less: current portion, record in current liabilities

 ( 100,484
)

 Present value of lease liabilities

 483,866

 Capital commitment

 As of December 31, 2023, the Company has entered
into several contracts for the purchase of paper machine of a new tissue paper production line PM10 and the improvement of Industrial
Buildings. Total outstanding commitments under these contracts were $ 3,499,936 and $ 4,329,279 as of December 31, 2023 and 2022, respectively.
The Company expected to pay off all the balances within 1 - 3 years.

 Guarantees and Indemnities

 The Company agreed with Baoding Huanrun Trading
Co., a major supplier of raw materials, to guarantee certain obligations of this third party, and as of December 31, 2023, and 2022, the
Company guaranteed its long-term loan from financial institutions amounting to $ 4,376,862 (RMB 31,000,000) and $ 4,451,081 (RMB 31,000,000),
respectively, that matured at various times in 2028. If Huanrun Trading Co., were to become insolvent, the Company could be materially
adversely affected.

 F- 27

 (18) Segment Reporting

 Since March 10, 2010, Baoding Shengde started
its operations and thereafter the Company manages its operations through three business operating segments: Dongfang Paper and Tengsheng
Paper, which produces offset printing paper, corrugating medium paper and tissue paper, and Baoding Shengde, which produces face masks
and digital photo paper. They are managed separately because each business requires different technology and marketing strategies.

 The Company evaluates performance of its operating
segments based on net income. Administrative functions such as finance, treasury, and information systems are centralized. However, where
applicable, portions of the administrative function expenses are allocated among the operating segments based on gross revenue generated.
The operating segments do share facilities in Xushui County, Baoding City, Hebei Province, China. All sales were sold to customers located
in the PRC.

 Summarized financial information for the three reportable segments
is as follows:

 December 31, 2023

 Dongfang

 Tengsheng

 Baoding

 Not Attributable

 Elimination of

 Enterprise-wide,

 Paper

 Paper

 Shengde

 to Segments

 Inter-segment

 consolidated

 $
 85,106,864

 1,334,022

 106,064

 -

 -

 86,546,950

 Gross profit

 4,006,381

 ( 2,995,369
)

 ( 11,127
)

 -

 -

 999,885

 Depreciation and amortization

 4,168,755

 8,470,810

 1,586,425

 -

 -

 14,225,990

 Loss on impairment of assets

 905,226

 219,744

 375,328

 -

 -

 1,500,298

 Interest income

 300,928

 2,376

 9,790

 2,002

 -

 315,096

 Interest expense

 503,740

 181,447

 291,675

 7,656

 -

 984,518

 Income tax expense(benefit)

 346,954

 -

 -

 -

 -

 346,954

 Net income (loss)

 ( 109,770
)

 ( 9,004,792
)

 ( 726,065
)

 ( 105,408
)

 -

)

 December 31, 2022

 Dongfang

 Tengsheng

 Baoding

 Not Attributable

 Elimination of

 Enterprise-wide,

 Paper

 Paper

 Shengde

 to Segments

 Inter-segment

 consolidated

 $
 98,725,408

 1,369,206

 257,820

 -

 -

 100,352,434

 Gross profit

 7,629,761

 ( 2,942,893
)

 67,328

 -

 -

 4,754,196

 Depreciation and amortization

 4,782,157

 8,349,374

 1,656,505

 -

 -

 14,788,036

 Interest income

 12,820

 1,209

 8,684

 1,551

 -

 24,264

 Interest expense

 653,525

 54,180

 320,246

 -

 -

 1,027,951

 Income tax expense(benefit)

 3,054,208

 7,062,139

 1,579,930

 15,062

 -

 11,711,339

 Net income (loss)

 780,465

 ( 17,162,887
)

 ( 1,100,286
)

 880,406

 30,994

)

 As of December 31, 2023

 Dongfang

 Paper

 Tengsheng

 Paper

 Baoding

 Shengde

 Not Attributable

 to Segments

 Elimination of

 Inter-segment

 Enterprise-wide,

 consolidated

 Total assets

 $
 57,139,592

 127,734,031

 8,184,902

 1,685,124

 -

 194,743,649

 As of December 31, 2022

 Dongfang

 Paper

 Tengsheng

 Paper

 Baoding

 Shengde

 Not Attributable

 to Segments

 Elimination of

 Inter-segment

 Enterprise-wide,

 consolidated

 Total assets

 $
 63,365,986

 117,645,828

 17,945,969

 5,489,450

 -

 204,447,233

 F- 28

 (19) Concentration and Major Customers and Suppliers

 For the years ended December 31, 2023, and 2022, the Company had no
single customer contributed over 10 % of total sales.

 For the year ended December 31, 2023, the Company had two major suppliers
that accounted for 72 % and 17 % of total purchases by the Company.

 For the year ended December 31, 2022, the Company had two major suppliers
that accounted for 76 % and 15 % of total purchases by the Company.

 (20) Concentration of Credit Risk

 Financial instruments for which the Company is
potentially subject to concentration of credit risk consist principally of cash. The Company places its cash in reputable financial institutions
in the PRC and the United States. Although it is generally understood that the PRC central government stands behind all of the banks in
China in the event of bank failure, there is no deposit insurance system in China that is similar to the protection provided by the Federal
Deposit Insurance Corporation ("FDIC") of the United States as of December 31, 2023 and 2022. On May 1, 2015, the new "Deposit
Insurance Regulations" was effective in the PRC that the maximum protection would be up to RMB 500,000 (US$ 70,595) per depositor
per insured financial intuition, including both principal and interest. For the cash placed in financial institutions in the United States,
the Company's U.S. bank accounts are all fully covered by the FDIC insurance as of December 31, 2023, and 2022, while for the cash
placed in financial institutions in the PRC, the balances exceeding the maximum coverage of RMB 500,000 amounted to RMB 24,135,060 (US$ 3,407,607)
as of December 31, 2023.

 (21) Risks and Uncertainties

 IT Tech Packaging is subject to substantial risks
from, among other things, intense competition associated with the industry in general, other risks associated with financing, liquidity
requirements, rapidly changing customer requirements, foreign currency exchange rates, and operating in the PRC under its various laws
and restrictions.

 F- 29

 (22) Subsequent Event

 The board removed Jie Ping from the position of Legal Representative
of Tengsheng Paper On January 1, 2024.

 (23) Summarized Quarterly Financial Data (Unaudited)

 Quarter

 2023

 First

 Second

 Third

 Fourth

 $
 19,790,877

 $
 30,019,914

 $
 15,771,560

 $
 20,964,599

 Gross (loss) profit

 ( 276,999
)

 1,179,858

 ( 153,223
)

 250,249

 Loss from operations

 ( 2,772,361
)

 ( 518,683
)

 ( 2,484,513
)

 ( 3,800,331
)

 Net loss

 ( 2,733,165
)

 ( 1,253,493
)

 ( 1,975,368
)

 ( 3,984,009
)

 Net income per share

 Basic

 $
 - 0.27

 $
 - 0.125

 $
 - 0.20

 $
 - 0.40

 Diluted

 $
 - 0.27

 $
 - 0.125

 $
 - 0.20

 $
 - 0.40

 2022

 First

 Second

 Third

 Fourth

 $
 15,481,618

 $
 31,788,884

 $
 31,709,214

 $
 21,372,718

 Gross profit

 310,445

 634,037

 2,783,588

 1,026,126

 Loss from operations

 ( 2,990,436
)

 ( 1,235,765
)

 ( 586,953
)

 ( 1,895,373
)

 Net loss

 ( 2,488,214
)

 ( 287,913
)

 ( 1,887,318
)

 ( 11,907,863
)

 Net income per share

 Basic

 $
 - 0.03

 $
 - 0.003

 $
 - 0.19

 $
 - 1.19

 Diluted

 $
 - 0.03

 $
 - 0.003

 $
 - 0.19

 $
 - 1.19

 F- 30

 (24) Condensed Financial Information of the Parent Company

 The condensed financial statements of IT Tech
Packaging Inc. ("ITP", the "parent company") have been prepared in accordance with accounting principles generally
accepted in the United States of America. Under the PRC laws and regulations, the Company's PRC subsidiaries are restricted in their
ability to transfer certain of their net assets to the parent company in the form of dividend payments, loans or advances. The amounts
restricted include paid-in capital, capital surplus and statutory reserves, as determined pursuant to PRC generally accepted accounting
principles, totaling $ 86,641,643 and $ 86,141,643 as of December 31, 2023, and 2022.

 The following represents condensed unconsolidated financial information
of the parent company only:

 2023

 2022

 ASSETS

 Current Assets

 Cash and cash
 equivalents

 $
 678,347

 $
 1,930,241

 Prepayments
 and other current assets

 -

 -

 Total current
 assets

 678,347

 1,930,241

 Investment
 in subsidiaries

 172,382,428

 184,806,532

 Total
 Assets

 $
 173,060,775

 $
 186,736,773

 LIABILITIES
 AND STOCKHOLDERS' EQUITY

 Current Liabilities

 Inter-company payable

 $
 4,026,904

 $
 4,070,160

 Due to related parties

 727,433

 727,433

 Accrued payroll and employee
 benefit

 -

 -

 Accrued liabilities

 -

 -

 Income
 tax payable

 -

 -

 Total
 current liabilities

 4,754,337

 4,797,593

 Derivative liability

 646,283

 Total liabilities

 $
 4,754,391

 $
 5,443,876

 Total
 stockholders' equity

 1 68,306,384

 181,292,897

 Total
 Liabilities and Stockholders' Equity

 $
 173,060,775

 $
 186,736,773

 F- 31

 CONDENSED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (LOSS)

 2023

 2022

 Revenue

 -

 -

 Selling, general and administrative expenses

 $
 708,638

 $
 515,294

 Loss from Operations

 ( 708,638
)

 ( 515,294
)

 Equity in earnings of unconsolidated subsidiaries

 ( 9,883,626
)

 ( 17,489,197
)

 Loss on derivative liability

 646,229

 1,417,251

 Other Income (Expense)

 -

 -

 Income before Income Taxes

)

 ( 16,587,240
)

 Provision for Income Taxes

 -

 ( 15,062
)

 Net Income

 $
)

 $
 ( 16,602,302
)

 Other comprehensive income /(loss)

 ( 3,040,994
)

 ( 18,010,708
)

 Total Comprehensive Income (loss)

 $
 ( 12,987,029
)

 $
 ( 34,613,010
)

 2023

 2022

 Net Cash Used in Operating Activities

 $
 ( 708,641
)

 $
 ( 374,357
)

 Net Cash Used in Investing Activities

 ( 500,000
)

 ( 6,502,000
)

 Net Cash Provided by Financing Activities

 ( 43,253
)

 ( 329,399
)

 Net Increase (Decrease) in Cash and Cash Equivalents

 ( 1,251,894
)

 ( 7,205,755
)

 Cash and Cash Equivalents - Beginning of Year

 1,930,241

 9,135,996

 Cash and Cash Equivalents - End of Year

 $
 678,347

 $
 1,930,241

 The condensed financial information has been prepared
using the same accounting policies as set out in the Company's consolidated financial statements except that the parent company
has used equity method to account for its investments in the subsidiaries.

 F- 32

 Item 9. Changes in and Disagreements with Accountants on Accounting
and Financial Disclosure

 On
February 29, 2024, WWC, P.C. Certified Public Accountants ("WWC") resigned as our independent registered public accounting
firm, effective immediately.

 WWC's
reports on our consolidated financial statements for the fiscal years ended December 31, 2022 and 2021 did not contain an adverse opinion
or a disclaimer of opinion and were not qualified or modified as to uncertainty, audit scope or accounting principles.

 During
the two most recent fiscal years ended December 31, 2022 and 2021, and the subsequent interim period through February 29, 2024, there
were no disagreements with WWC on any matter of accounting principles or practices, financial statement disclosure, or auditing scope
or procedure, which disagreements, if not resolved to the satisfaction of WWC, would have caused WWC to make reference to the subject
matter of the disagreements in connection with its reports on our consolidated financial statements for such years. Also during this time,
there were no "reportable events," as defined in Item 304(a)(1)(v) of Regulation S-K.

 We
provided WWC with a copy of the above disclosures and requested that WWC furnish the Company with a letter addressed to the SEC stating
whether or not it agrees with the statements made above. A copy of WWC's letter dated February 29, 2024 was attached as Exhibit
16.1 to a Current Report on Form 8-K that was filed by us with the SEC on March 4, 2024.

 On
March 1, 2024, we engaged GGF CPA LIMITED ("GGF") as our independent registered public accounting firm for the fiscal year
ending December 31, 2023, effective immediately. During the fiscal years ended December 31, 2022 and 2021 and through March 1, 2024, neither
we nor anyone on its behalf consulted with GGF regarding (i) the application of accounting principles to any specified transaction, either
completed or proposed or the type of audit opinion that might be rendered on our consolidated financial statements, and neither a written
report nor oral advice was provided to us that GGF concluded was an important factor considered by us in reaching a decision as to any
accounting, auditing, or financial reporting issue, or (ii) any matter that was either the subject of a "disagreement," as
defined in Item 304(a)(1)(iv) of Regulation S-K, or a "reportable event," as defined in Item 304(a)(1)(v) of Regulation S-K.

 Item 9A. Controls and Procedures

 Our management is responsible
for establishing and maintaining a system of disclosure controls and procedures (as defined in Rule 13a-15(e)) under the Exchange Act)
that is designed to ensure that information required to be disclosed by the Company in the reports that we file or submit under the Exchange
Act is recorded, processed, summarized and reported, within the time specified in the Commission's rules and forms. Disclosure controls
and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by an
issuer in the reports that it files or submits under the Exchange Act is accumulated and communicated to the issuer's management,
including its principal executive officer or officers and principal financial officer or officers, or persons performing similar functions,
as appropriate to allow timely decisions regarding required disclosure.

 Pursuant to Rule 13a-15(b)
under the Exchange Act, the Company carried out an evaluation with the participation of the Company's management, including Zhenyong
Liu, the Company's Chief Executive Officer ("CEO"), and Jing Hao, the Company's Chief Financial Officer ("CFO"),
of the effectiveness of the Company's disclosure controls and procedures (as defined under Rule 13a-15(e) under the Exchange Act)
as of December 31, 2023. Based upon that evaluation, the Company's CEO and CFO concluded that the Company's disclosure controls
and procedures were effective to ensure that information required to be disclosed by the Company in the reports that the Company files
or submits under the Exchange Act, is recorded, processed, summarized and reported, within the time periods specified in the SEC's
rules and forms, and that such information is accumulated and communicated to the Company's management, including the Company's
CEO and CFO, as appropriate, to allow timely decisions regarding required disclosure.

 Management conducted an
assessment of the effectiveness of the Company's internal control over financial reporting as of December 31, 2023. In making this
assessment, management used the framework set forth in Internal Control - Integrated Framework (2013) issued by the Committee of
Sponsoring Organizations of the Treadway Commission. Based on this assessment, management has determined that, as of December 31, 2023,
the Company's internal control over financial reporting was effective.

 This annual report does
not include an attestation report of its registered independent public accounting firm regarding the Company's internal control
over financial reporting because the Company is not required to include such attestation report in this annual report.

 Changes in internal controls

 Our management, with the
participation of our CEO and CFO, performed an evaluation as to whether any change in our internal controls over financial reporting occurred
during the year ended December 31, 2023. Based on that evaluation, our CEO and CFO concluded that no change occurred in the Company's
internal controls over financial reporting during the quarter ended December 31, 2023 that has materially affected, or is reasonably likely
to materially affect, the Company's internal controls over financial reporting.

 Item 9B. Other Information

 None.

 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent
Inspections.

 Not applicable.

 Item 10. Directors, Executive Officers and Corporate Governance

 Set forth below is certain
information regarding our directors and executive officers. Our Board of Directors is comprised of five directors, and is divided into
two classes, Class I and Class II. There are no family relationships between any of our directors or executive officers.

 The following table sets forth certain information with respect
to our directors and executive officers:

 Name

 Age

 Position/Title

 Zhenyong Liu

 Chief Executive Officer and Chairman of the Board

 Jing Hao

 Chief Financial Officer

 Dahong Zhou

 Secretary

 Marco Ku Hon Wai

 Wenbing Christopher Wang

 Fuzeng Liu

 Lusha Niu

 We have two classes of directors
with each class elected in a different calendar year from the calendar year in which the other class of directors are elected. All directors
are elected for a two-year term. The directors elected in Class I, Marco Ku Hon Wai and Wenbing Christopher Wang, will serve until the
annual meeting of stockholders in 2025 and until their respective successors have been elected and have qualified, or until their earlier
resignation, removal or death. The directors elected in Class II, Zhenyong Liu, Fuzeng Liu and Lusha Niu will serve until the annual meeting
of stockholders in 2024 and until their respective successors have been elected and have qualified, or until their earlier resignation,
removal or death. Our officers serve at the discretion of our Board of Directors.

 Set forth below is biographical information about our current
directors and executive officers:

 Zhenyong Liu. Mr.
Zhenyong Liu became a member of the Board of Directors, and was appointed as Chairman of the Board of Directors on November 30, 2007.
Mr. Liu has also served as the Company's Chief Executive Officer since November 16, 2007, and serves as Chairman of Hebei Baoding
Dongfang Paper Milling Company Limited (Dongfang Paper), a position he has held since 1996. From 1990 to 1996, he served as Plant Director
of Xinxin Paper Milling Factory in Xushui District. Mr. Liu served as General Manager of the East Central Household Appliance Purchases
and Supply Station from 1980 to 1989.

 Jing Hao. Ms. Jing
Hao was appointed as our Chief Financial Officer on November 3, 2014. Ms. Hao previously served as the Company's Chief Financial
Officer between November 2007 and April 2009. In addition, Ms. Hao has served as Chief Financial Officer of Hebei Baoding Dongfang Paper
Milling Company Limited (Dongfang Paper) since 2006. Prior to that, she was Manager of Finance for Dongfang Paper from 2005 to 2006.

 Dahong Zhou. Ms.
Dahong Zhou was appointed as our Secretary on November 16, 2007. Ms. Zhou also serves as Executive Manager of Hebei Baoding Dongfang Paper
Milling Company Limited (Dongfang Paper), a position she has held since 2006.

 Marco Ku Hon Wai. Mr.
Marco Ku Hon Wai has served on the Board of Directors since November 3, 2014. Mr. Ku is the founder of Sensible Investment Company Limited,
an investment consulting firm based in Hong Kong founded in 2013. He was previously Chief Financial Officer of China Marine Food Group
Limited (OTC: CMFO) from July 2007 to October 2013. Prior to his position at China Marine Food Group Limited, Mr. Ku co-founded KISS Catering
Group, a food and beverage business in Beijing from October 2005 to April 2007. Mr. Ku worked at KPMG LLP from 1996 to 2000, where his
last held position was Assistant Manager. Mr. Ku received a bachelor's degree in finance from the Hong Kong University of Science
and Technology in 1996, and is currently a fellow member of the Hong Kong Institute of Certified Public Accountants.

 Wenbing Christopher Wang. Mr. Wenbing
Christopher Wang has served on the Board of Directors since October 28, 2009. Mr. Wang has also been serving as chief financial
officer of Phoenix Motor Inc. (Nasdaq: PEV) since June 2021. Mr. Wang has also been serving as President and Director of FushiCopperweld,
Inc. ("Fushi") since January 21, 2008. Mr. Wang served as Fushi's Chief Financial Officer from December 13,
2005 to August 31, 2009. Prior to Fushi, Mr. Wang worked for Redwood Capital, Inc., China Century Investment Corporation, Credit
Suisse First Boston and VC China in various capacities. Fluent in both English and Chinese, Mr. Wang holds a master's degree
in business administration and finance and corporate accounting from Simon Business School of University of Rochester. Mr. Wang was
named one of the top ten CFO's of 2007 in China by CFO magazine.

 Fuzeng Liu. Mr. Fuzeng
Liu has been a member of the Board of Directors since November 30, 2007. Mr. Liu has also served as Vice President of Dongfang Paper since
2002. Previously, he served as Deputy Secretary of the Traffic Bureau of Xushui District from 1992 to 2002 and as Party Secretary of Dayin
Town, Xushui District from 1988 to 1992.Mr. Liu also served as Head of the Cuizhuang Town, Xushui District from 1984 to 1988. From 1977
to 1984, Mr. Liu worked at the committee office of Xushui District.

 Lusha Niu. Ms. Niu
has been a member of the Board of Directors since October 12, 2016. Ms. Niu is a public relations veteran with strong background in international
business and finance. Since September 2013, Ms. Niu has been the Director of Corporate Communications and Public Affairs, Asia Lead of
Financial Communication at MSL GROUP, a global public communications firm. From August 2008 until August 2013, Ms. Niu was an Associate
Director at APCO Worldwide, a Washington D.C. based global public affairs consulting firm. Ms. Niu also served as a Consulting Analyst
with BDA Consulting, advising global institutional investors on their China deal strategy. Ms. Niu holds a Master's degree in Finance
from the University of Colorado.

 The Board of Directors believes
that each of the Company's directors is highly qualified to serve as a member of the Board. Each of the directors has contributed
to the mix of skills, core competencies and qualifications of the Board of Directors. When evaluating candidates for election to the Board,
the Nominating Committee seeks candidates with certain qualities that it believes are important, including integrity, an objective perspective,
good judgment, and leadership skills. Our directors are highly educated and have diverse backgrounds and talents and extensive track records
of success in what we believe are highly relevant positions. Some of our directors have served in our operating entity, Dongfang Paper,
for many years and benefit from an intimate knowledge of our operations and corporate philosophy.

 Committees

 Our business, property and
affairs are managed by or under the direction of the Board of Directors. Members of the Board of Directors are kept informed of our business
through discussion with the chief executive and financial officers and other officers, by reviewing materials provided to them and by
participating at meetings of the board and its committees.

 Our Board of Directors has
three committees - the Audit Committee, the Compensation Committee and the Nominating Committee. The Audit Committee is comprised of Marco
Ku Hon Wai, Wenbing Christopher Wang and Lusha Niu, with Mr. Ku serving as chairman. The Compensation Committee is comprised of Marco
Ku Hon Wai, Wenbing Christopher Wang and Lusha Niu, with Ms. Lusha Niu serving as chairwoman. The Nominating Committee is comprised of
Marco Ku Hon Wai, Wenbing Christopher Wang and Lusha Niu, with Mr. Wenbing Christopher Wang serving as chairman.

 Our Audit Committee is involved
in discussions with our independent auditor with respect to the scope and results of our year-end audit, our quarterly results of operations,
our internal accounting controls and the professional services furnished by the independent auditor. Our Board of Directors has determined
that both Mr. Marco Ku Hon Wai and Mr. Wenbing Christopher Wang qualify as audit committee financial experts and have the accounting or
financial management expertise as required under NYSE Rule 303A.07(a). Our Board of Directors has also adopted a written charter for the
audit committee which the audit committee reviews and reassesses for adequacy on an annual basis. A copy of the audit committee's
current charter is available at the our corporate website at

 The Compensation Committee
oversees the compensation of our chief executive officer and our other executive officers and reviews our overall compensation policies
for employees generally. If so authorized by the Board of Directors, the committee may also serve as the granting and administrative committee
under any option or other equity-based compensation plans which we may adopt. The Compensation Committee does not delegate its authority
to fix compensation; however, as to officers who report to the chief executive officer, the compensation committee consults with the chief
executive officer, who may make recommendations to the compensation committee. Any recommendations by the chief executive officer are
accompanied by an analysis of the basis for the recommendations. The committee will also discuss compensation policies for employees who
are not officers with the chief executive officer and other responsible officers. A copy of the compensation committee's current
charter is available at our corporate website at

 The Nominating Committee
is involved in evaluating the desirability of and recommending to the board any changes in the size and composition of the board, evaluation
of and successor planning for the chief executive officer and other executive officers. The qualifications of any candidate for director
will be subject to the same extensive general and specific criteria applicable to director candidates generally. A copy of the nominating
committee's current charter is available at our corporate website at

 Code of Ethics

 We have adopted a code of ethics that applies
to our principal executive officer, principal financial officer, principal accounting officer and controller, or persons performing similar
functions. The Code of Ethics is currently available at our corporate website at

 Board Meetings

 The Board of Directors and its committees held the following
number of meetings during 2023:

 Board of Directors

 Audit Committee

 Compensation Committee

 Nominating Committee

 The above table includes meetings held by means of a conference
telephone call and actions taken by unanimous written consent.

 Each director attended at least 75% of the total
number of meetings of the Board of Directors and those committees on which he served during the year.

 For the fiscal year ended
December 31, 2023, the Board of Directors met on at least a quarterly basis. The independent directors had regularly scheduled meetings
as often as necessary to fulfill their responsibilities, including at least annually in executive session without the presence of non-independent
directors and management as required by Section 802(c) of the NYSE American Company Guide.

 Directors or Executive Officers involved in Bankruptcy or Criminal
Proceedings

 To our knowledge, during the last ten years, none of our directors
and executive officers (including those of our subsidiaries) has:

 had a bankruptcy petition filed by or against any business of which such person was a general partner or executive officer either
at the time of the bankruptcy or within two years prior to that time;

 been convicted in a criminal proceeding or been subject to a pending criminal proceeding, excluding traffic violations and other minor
offenses;

 been subject to any order, judgment or decree, not subsequently reversed, suspended or vacated, of any
court of competent jurisdiction, permanently or temporarily enjoining, barring, suspending or otherwise limiting his involvement in any
type of business, securities or banking activities;

 been found by a court of competent jurisdiction (in a civil action), the SEC, or the Commodities Futures
Trading Commission to have violated a federal or state securities or commodities law, and the judgment has not been reversed, suspended
or vacated; or

 been the subject to, or a party to, any sanction or order, not subsequently reverse, suspended or vacated,
of any self-regulatory organization, any registered entity, or any equivalent exchange, association, entity or organization that has disciplinary
authority over its members or persons associated with a member.

 Board Leadership Structure and Role in Risk Oversight

 Mr. Zhenyong Liu is our
chairman and chief executive officer. At the advice of other members of the management or the Board, Mr. Liu calls meetings of the Board
of Directors when necessary. We have three independent directors. Our Board of Directors has three standing committees, each of which
is comprised solely of independent directors with a committee chair. The Board of Directors believes that the Company's chief executive
officer is best situated to serve as chairman of the Board of Directors because he is the director most familiar with our business and
industry and the director most capable of identifying strategic priorities and executing our business strategy. We believe that this leadership
structure has served the Company well. Our Board of Directors has overall responsibility for risk oversight. The Board of Directors has
delegated responsibility for the oversight of specific risks to the committees as follows:

 The Audit Committee oversees the Company's risk policies and processes relating to the financial
statements and financial reporting processes, as well as key credit risks, liquidity risks, market risks and compliance, and the guidelines,
policies and processes for monitoring and mitigating those risks.

 The Compensation Committee oversees the compensation of our chief executive officer and our other executive officers and reviews our
overall compensation policies for employees.

 The Nominating Committee oversees risks related to the Company's governance structure and processes.

 Our Board of Directors
is responsible for approving all related party transactions according to our Code of Ethics. We have not adopted written policies and
procedures specifically for related person transactions.

 Compliance with Section 16(a) of the Securities Exchange Act of
1934

 Section 16(a) of the Exchange
Act, requires our executive officers and directors and persons who own more than 10% of a registered class of our equity securities to
file with the SEC initial statements of beneficial ownership, reports of changes in ownership and annual reports concerning their ownership
of our common stock and other equity securities, on Form 3, 4 and 5 respectively. Executive officers, directors and greater than 10% shareholders
are required by the SEC regulations to furnish our company with copies of all Section 16(a) reports they file.

 Based solely on our review
of the copies of such reports received by us, and on written representations by our officers and directors regarding their compliance
with the applicable reporting requirements under Section 16(a) of the Exchange Act, we believe that, with respect to the fiscal year
ended December 31, 2023, all such reports were filed timely.

 Item 11. Executive Compensation

 The following compensation
table summarizes the cash and non-cash compensation earned during the years ended December 31, 2023 and 2022 by each person who served
as principal executive officer, principal financial officer, and secretary during 2023.

 Name and Principal Position

 Year

 Salary

 Bonus

 Stock

Awards

 Option

 Awards

 Non-Equity

 Incentive Plan

 Compensation

 Total

 ($)

 ($)

 ($)

 ($)

 ($)

 ($)

 Zhenyong Liu,

 2022

 $
 35,519

 -

 -

 -

 $
 35,519

 Chairman, CEO

 2023

 $
 34,016

 -

 $
 -

 -

 -

 $
 34,016

 Jing Hao

 2022

 $
 35,519

 $
 -

 -

 -

 $
 35,519

 CFO

 2023

 $
 34,016

 -

 $
 -

 -

 -

 $
 34,016

 Dahong Zhou,

 2022

 $
 4,299

 -

 $
 -

 -

 -

 $
 4,299

 Secretary

 2023

 $
 4,117

 -

 $
 -

 -

 -

 $
 4,117

 Employment Agreements

 Mr. Zhenyong Liu receives
a monthly salary of RMB 20,000 (approximately $2,835). On January 11, 2012, the Company awarded Mr. Zhenyong Liu 4,433 shares of restricted
common stock. These shares of common stock were issued under the 2011 ISP and are valued at $34.5 per share, based on the closing price
on the date of the issuance. On December 31, 2013, the Company awarded Mr. Zhenyong Liu 800 shares of restricted common stock under the
2011 ISP and 2012 ISP, with a value of $26.6 per share, based on the closing price on the date of the stock issuance. On September 13,
2018, the Company issued 10,000 shares of common stock to Mr. Zhenyong Liu under the 2015 Omnibus Equity Incentive Plan with a value of
$8.8 per share as of the date of issuance. On April 8, 2020, the Company issued 20,000 shares of common stock to Mr. Zhenyong Liu under
the 2019 ISP with a value of $6.0 per share as of the date of issuance. On September 8, 2020, the Compensation Committee of the Company
unanimously approved that Mr. Zhenyong Liu shall receive the bonus of $40,000 for his service rendered in the year 2020.

 Ms. Hao began receiving
a monthly salary of RMB 20,000 (approximately $2,835) in January 2015. On September 13, 2018, the company issued 1,000 shares of common
stock to Ms. Jing Hao under the 2015 Omnibus Equity Incentive Plan with a value of $8.8 per share as of the date of issuance. On September
8,2020, the Compensation Committee of the Company unanimously approved that Ms. Jing Hao shall receive the bonus of $40,000 for her service
rendered in the year 2020.

 Compensation of Directors

 The following table sets forth a summary of compensation paid or entitled
to our directors during the fiscal years ended December 31, 2023 and 2022:

 Name and Principal Position

 Year

 Salary

 Bonus

 Stock
 Awards

 Option
 Awards

 Non-Equity
 Incentive Plan
 Compensation

 Total

 ($)

 ($)

 ($)

 ($)

 ($)

 ($)

 Fuzeng Liu

 2022

 $
 7,701

 -

 $
 -

 -

 -

 $
 7,701

 2023

 $
 7,375

 -

 $
 -

 -

 -

 $
 7,375

 Marco Ku Hon Wai

 2022

 $

 -

 $
 -

 -

 -

 $

 2023

 $

 -

 $
 -

 -

 -

 $

 Wenbing Christopher Wang

 2022

 $

 -

 $
 -

 -

 -

 $

 2023

 $

 -

 $
 -

 -

 -

 $

 LushaNiu

 2022

 $
 7,399

 -

 -

 -

 -

 $
 7,399

 2023

 $
 7,086

 -

 -

 -

 -

 $
 7,086

 Effective November 1, 2014,
Mr. Marco Ku Hon Wai began serving as our director and has received annual compensation of $20,000, payable on a monthly basis. In addition,
the Company agreed to issue Mr. Ku 750 shares of its common stock. On January 12, 2016, the Company issued Mr. Ku 750 shares restricted
common stock under the 2015 ISP for his services in 2015, with a value of $13.3 per share, based on the closing price on the date of the
issuance. Mr. Ku will be reimbursed for his out-of-pocket expenses incurred in connection with his service to the Company.

 Effective October 28, 2009,
Mr. Wenbing Christopher Wang has served as our director and has received annual compensation of $20,000, payable on a monthly basis. Mr.
Wang also received 400 shares of common stock, a number equal to $20,000 divided by the closing price of the common stock on October 28,
2009, with piggyback registration rights subordinate to that held by investors in any past or future private placement of securities.
On January 11, 2012, the Company awarded its independent director Mr. Wenbing Christopher Wang 1,582 shares of restricted common stock.
These shares of common stock were issued under the 2011 ISP and are valued at $34.5 per share, based on the closing price on the date
of the issuance. On December 31, 2013, the Company awarded Mr. Wang 500 shares restricted common stock under the 2011 ISP and 2012 ISP
for, with a value of $26.6 per share, based on the closing price on the date of the stock issuance. On January 12, 2016, the Company issued
Mr. Wang 500 shares restricted common stock under the 2015 ISP, with a value of $13.3 per share, based on the closing price on the date
of the issuance.

 On October 12, 2016, Ms. Lusha Niu was elected as
our director and receives annual compensation of RMB50,000, payable on a monthly basis.

 On December 31, 2013, Mr.
Fuzeng Liu received 500 shares of restricted common stock from our 2011 and 2012 ISPs. The value of the stock award is determined by the
closing price of the Company's common stock on the date of the award, which was $26.6 as of December 31, 2013.

 Other than the appointments
described above, there are no understandings or arrangements between Mr. Ku, Mr. Wang, or Ms. Niu and any other person pursuant to which
Mr. Ku, Mr. Wang, or Ms. Niu was appointed as a director. Mr. Ku, Mr. Wang, and Ms. Niu do not have any family relationship with any director,
executive officer or person nominated or chosen by us to become a director or executive officer.

 Outstanding Equity Awards at Fiscal Year-End

 There were no option exercises in fiscal year of 2023 or options
outstanding as of December 31, 2023.

 Pension and Retirement Plans

 Currently, except for contributions
to the PRC government-mandated social security retirement endowment fund for those employees who have not waived their coverage, we do
not offer any annuity, pension or retirement benefits to be paid to any of our officers, directors or employees. There are also no compensatory
plans or arrangements with respect to any individual named above which results or will result from the resignation, retirement or any
other termination of employment with our company, or from a change in our control.

 Item 12. Security Ownership of Certain Beneficial Owners and Management
and Related Stockholder Matters

 The following table sets forth certain information
with respect to the beneficial ownership of our common stock by (i) each director, (ii) our Chief Executive Officer and President and
(iii) all executive officers and directors as a group as of the date of this annual report.

 Amount and Nature of Beneficial Ownership

 Amount and Nature of

 Percentage of

 Beneficial

 Common

 Name and Address of Beneficial Owner (1)

 Ownership

 Stock

 Zhenyong Liu CEO and Director

 536,484

 5.3
 %

 Jing Hao CFO

 1,000

 *

 Dahong Zhou Secretary

 Marco Ku Hon Wai Director

 *

 Fuzeng Liu Director

 *

 Wenbing Christopher Wang Director

 2,982

 *

 LushaNiu Director

 *

 All Directors and Executive Officers as a Group (7 persons)

 541,716

 5.4
 %

 *
 Less than 1% of the Company's issued and outstanding
common shares.

 (1)
 The address of each director and executive officer is c/o Science Park, Juli Road, Xushui District, Baoding City, Hebei Province,
People's Republic of China.

 Securities Authorized for Issuance under Equity Compensation Plans

 The following table provides information as of December 31,
2023 about our equity compensation plan and arrangements:

 Plan
 category

 Number
 of

 securities to

 be issued upon

 exercise

 of outstanding

 options

 and restricted

 stock units

 Weighted-

 average

 exercise price

 of

 outstanding

 options,

 and restricted

 stock units

 Number
 of

 securities

 remaining

 available for

 future

 issuance

 under equity

 compensation

 plans

 Equity compensation plans approved by security holders

 -

 $
 -

 -

 Equity compensation plans not approved by security holders

 -

 -

 -

 Total

 $

 Item 13. Certain Relationships and Related Transactions, and Director
Independence

 Loans from our principal shareholder, Chairman and CEO Mr. Zhenyong
Liu

 Mr. Zhenyong Liu, the Company's
CEO has loaned money to Dongfang Paper for working capital purposes over a period of time. On January 1, 2013, Dongfang Paper and Mr.
Zhenyong Liu renewed the three-year term loan previously entered on January 1, 2010, and extended the maturity date further to December
31, 2015. On December 31, 2015, the Company paid off the loan of $2,249,279, together with interest of $391,374 for the period from 2013
to 2015. Approximately $361,915 and $368,052 of interest were outstanding to Mr. Zhenyong Liu, which were recorded in other payables and
accrued liabilities as part of the current liabilities in the consolidated balance sheet as of December 31, 2023, and 2022, respectively.

 On December 10, 2014, Mr.
Zhenyong Liu provided a loan to the Company, amounted to $8,742,278 to Dongfang Paper for working capital purpose with an interest rate
of 4.35% per annum, which was based on the primary lending rate of People's Bank of China. The unsecured loan was provided on December
10, 2014, and would be originally due on December 10, 2017. During the year of 2016, the Company repaid $6,012,416 to Mr. Zhenyong Liu,
together with interest of $288,596. In February 2018, the company paid off the remaining balance, together with interest of $20,400. As
of December 31, 2023, and 2022, approximately $42,357 and $43,075 of interest were outstanding to Mr. Zhenyong Liu, which was recorded
in other payables and accrued liabilities as part of the current liabilities in the consolidated balance sheet.

 On March 1, 2015, the Company
entered an agreement with Mr. Zhenyong Liu which allows Dongfang Paper to borrow from the CEO an amount up to $17,201,342 (RMB120,000,000)
for working capital purposes. The advances or funding under the agreement are due three years from the date each amount is funded. The
loan is unsecured and carries an annual interest rate set on the basis of the primary lending rate of the People's Bank of China
at the time of the borrowing. On July 13, 2015, an unsecured amount of $4,324,636 was drawn from the facility. On October 14, 2016 an
unsecured amount of $2,883,091 was drawn from the facility. In February 2018, the company repaid $1,507,432 to Mr. Zhenyong Liu. The loan
would be originally due on July 12, 2018. Mr. Zhenyong Liu agreed to extend the loan for additional 3 years and the remaining balance
will be due on July 12, 2021. On November 23, 2018, the company repaid $3,768,579 to Mr. Zhenyong Liu, together with interest of $158,651.
In December 2019, the company paid off the remaining balance, together with interest of 94,636. As of December 31, 2023, and 2022, the
outstanding loan balance were $nil and $2,185,569, respectively, and the accrued interest was $194,047 and $197,338, respectively, which
was recorded in other payables and accrued liabilities as part of the current liabilities in the consolidated balance sheet.

 As of December 31, 2023
and 2022, total amount of loans due to Mr. Zhenyong Liu were $nil. The interest expense incurred for such related party loans are $nil
for the years ended December 31, 2023, and 2022, respectively. The accrued interest owe to the CEO was approximately $598,319 and $608,465,
as of December 31, 2023, and 2022, respectively, which was recorded in other payables and accrued liabilities.

 On December 8, 2021, the Company
entered into an agreement with Mr. Zhenyong Liu, which allows Mr. Zhenyong Liu to borrow from the Company an amount of $6,507,431 (RMB44,089,085).
The loan was unsecured and carried a fixed interest rate of 3% per annum. The loan was repaid by Mr. Zhenyong Liu in February 2022.

 In October 2022 and November
2022, the Company entered into two agreements with Mr. Zhenyong Liu, which allowed Mr. Zhenyong Liu to borrow from the Company an amount
of $7,059,455 (RMB50,000,000) in total. The loans were unsecured and carried a fixed interest rate of 4.35% per annum. $4,235,673 (RMB30,000,000)
was repaid by Mr. Zhengyong Liu in August 2023 and the remaining balance was repaid in December 2023. Interest income of the loan for
the year ended December 31, 2023 was $290,275.

 As of December 31, 2023
and 2022, amount due to shareholder are $727,433, respectively, which represents funds from shareholders to pay for various expenses incurred
in the U.S. The amount is due on demand with interest free.

 Procedures for Approval of Related Party Transactions

 Our Board of Directors
is charged with reviewing and approving all potential related party transaction whether or not such transactions exceed $120,000. We have
not adopted other procedures for review, or standards for approval, of such transactions, but instead review them on a case-by-case basis.

 Director Independence

 The Company currently
has three independent directors, Marco Ku Hon Wai, Wenbing Christopher Wang, and Lusha Niu, as that term is defined under the NYSE American
Company Guide.

 Item 14. Principal Accountant Fees and Services

 Our independent public accounting
firm is GGF CPA LTD., Level 3, Shop 119 No. 20, Jingang Avenue, Nansha District, Guangzhou, Guangdong, PCAOB Auditor ID 2729.

 Audit Fees

 We incurred approximately
$207,000 for professional services rendered by our registered independent public accounting firm, WWC, P.C., for the audit and reviews
of the Company's financial statements for 2023.

 We incurred approximately
$191,000 for professional services rendered by our registered independent public accounting firm, WWC, P.C., for the audit and reviews
of the Company's financial statements for 2022.

 We incurred approximately
$166,000 for professional services rendered by our registered independent public accounting firm, GGF for the audit of the Company's
financial statements for 2023.

 Audit-Related Fees

 IT Tech Packaging did not incur any audit-related fees to
WWC in 2023.

 IT Tech Packaging did not incur any audit-related fees to
WWC in 2022.

 Tax Reporting Preparation Fees

 IT Tech Packaging did not incur any tax reporting preparation
fees to WWC in 2023.

 IT Tech Packaging did not incur any tax reporting preparation
fees to WWC in 2022.

 All Other Fees

 IT Tech Packaging did not
incur any fees from its registered independent public accounting firm for services rendered to IT Tech Packaging, other than the services
covered in "Audit Fees" and "Audit-Related Fees" for the fiscal years ended December 31, 2023 and 2022.

 With respect to the Company's
auditing and other non-audit related services rendered by its registered independent public accounting firm for 2023 and 2022, all engagements
were entered into pursuant to the audit committee's pre-approval policies and procedures.

 Pre–Approval Policy of Services Performed
by Independent Registered Public Accounting Firm

 The Audit Committee's
policy is to pre–approve all audit and non–audit related services, tax services and other services. Preapproval is generally
provided for up to one year, and any pre–approval is detailed as to the particular service or category of services and is generally
subject to a specific budget. The Audit Committee has delegated the pre–approval authority to its chairperson when expedition of
services is necessary. The independent registered public accounting firm and management are required to periodically report to the full
Audit Committee regarding the extent of services provided by the independent registered public accounting firm in accordance with this
pre–approval and the fees for the services performed to date.

 PART
IV

 Item 15. Exhibits, Financial Statements Schedules

 Exhibit No.

 Description of Exhibit

 2.1

 Agreement and Plan of Merger, dated October 29, 2007, by and among Carlateral, Inc., CARZ Merger Sub, Inc., Dongfang Zhiye Holding Limited, and the shareholders of Dongfang Zhiye Holding Limited, incorporated by reference from Exhibit 10.1 to the Company's Current Report on Form 8-K filed with the Securities and Exchange Commission on November 2, 2007.

 3.1

 Articles of Incorporation, incorporated by reference to the exhibit to our report on form SB-2 filed with the SEC on August 4, 2006

 3.2

 Certificate of Amendment to Articles of Incorporation, incorporated by reference to the exhibit of the same number to our Current Report on form 8-K filed with the SEC on December 28, 2007

 3.3

 Bylaws, incorporated by reference to the exhibit to our report on form SB-2 filed with the SEC on August 4, 2006

 3.4

 Articles of Merger, incorporated by reference to the exhibit 3.1 to our report on Form 8-K filed with the SEC on August 1, 2018.

 3.5

 Certificate of Change, incorporated by reference to the exhibit 3.1 to our report on Form 8-K filed with the SEC on July 7, 2022.

 3.6

 Amended and Restated Bylaws, incorporated by reference to the exhibit 3.1 to our report on Form 8-K filed with the SEC on November 3, 2021.

 4.1

 Specimen of Common Stock certificate, incorporated by reference to the exhibit to our report on form SB-2 filed with the SEC on August 4, 2006

 4.2

 Form of Warrant, incorporated by reference to exhibit 4.1 to our Current Report on Form 8-K filed with the SEC on September 3, 2014.

 4.3

 Description of Securities, incorporated by reference to exhibit 4.3 to our Annual Report on Form 10-K filed with the SEC on March 23, 2020.

 4.4

 Form of Warrant, incorporated by reference to exhibit 4.1 to our Current Report on Form 8-K filed with the SEC on May 1, 2020.

 4.5

 Form of Warrant, incorporated by reference to exhibit 4.1 to our Current Report on Form 8-K filed with the SEC on May 4, 2020.

 4.6

 Form of Warrant, incorporated by reference to exhibit 4.1 to our Current Report on Form 8-K filed with the SEC on January 20, 2021.

 4.7

 Warrant Agency Agreement dated March 1, 2021 by and between the Company and Empire Stock Transfer Inc., incorporated by reference to the Exhibit 4.1 to our Current Report on Form 8-K filed with the SEC on March 1, 2021.

 4.8

 Form of Common Stock Purchase Warrant, incorporated by reference to the Exhibit 4.2 to our Current Report on Form 8-K filed with the SEC on March 1, 2021.

 10.1

 Land Lease Agreement, dated January 2, 2002, by and between the Company and Xushui District Dayin Township Wuji Village Committee and Party Branch, incorporated by reference to the exhibit to our amended Annual Report on form 10-K/A filed with the SEC on February 1, 2010

 10.2

 Land Use Rights Certificate, dated March 10, 2003, incorporated by reference to the exhibit to our amended Annual Report on form 10- K/A filed with the SEC on February 1, 2010

 10.3

 Exclusive Technical Service and Business Consulting Agreement, dated June 24, 2009, by and between Dongfang Paper and Baoding Shengde, incorporated by reference to the exhibit to our Current Report on form 8-K filed with the SEC on June 30, 2009

 10.4

 Proxy Agreement, dated June 24, 2009, by and between Dongfang Paper, Baoding Shengde, and the shareholders of Dongfang Paper, incorporated by reference to the exhibit to our Current Report on form 8-K filed with the SEC on June 30, 2009

 Exhibit No.

 Description of Exhibit

 10.5

 Loan Agreement, dated June 24, 2009, by and between Dongfang Paper, Baoding Shengde, and the shareholders of Dongfang Paper, incorporated by reference to the exhibit to our Current Report on form 8-K filed with the SEC on June 30, 2009

 10.6

 Call Option Agreement, dated June 24, 2009, by and between Dongfang Paper, Baoding Shengde, and the shareholders of Dongfang Paper, incorporated by reference to the exhibit to our Current Report on form 8-K filed with the SEC on June 30, 2009

 10.7

 Share Pledge Agreement, dated June 24, 2009, by and between Dongfang Paper, Baoding Shengde, and the shareholders of Dongfang Paper, incorporated by reference to the exhibit to our Current Report on form 8-K filed with the SEC on June 30, 2009

 10.8

 Call Option Agreement Amendment, dated February 10, 2010, by and between Dongfang Paper, Baoding Shengde, and the shareholders of Dongfang Paper, incorporated by reference to the exhibit to our Current Report on form 8-K filed with the SEC on February 11, 2010

 10.9

 Share Pledge Agreement Amendment, dated February 10, 2010, by and between Dongfang Paper, Baoding Shengde, and the shareholders of Dongfang Paper, incorporated by reference to the exhibit to our Current Report on form 8-K filed with the SEC on February 11, 2010

 10.10

 Securities Purchase Agreement dated October 7, 2009 between the Company and the Access America Fund, LP, Renaissance US Growth Investment Trust Plc, RENN Global Entrepreneurs Funds, Inc., Premier RENN Entrepreneurial Fund Limited, Pope Investments II, LLC and Steve Mazur (collectively, the "Buyers"), incorporated by reference to the exhibit to our Current Report on form 8-K filed with the SEC on October 8, 2009

 10.11

 Make Good Securities Escrow Agreement dated October 7, 2009 between the Company, the Buyers, Zhenyong Liu and the Sichenzia Ross Friedman Ference LLP (the "Escrow Agent")., incorporated by reference to the exhibit to our Current Report on form 8-K filed with the SEC on October 8, 2009

 10.12

 Escrow Agreement dated October 7, 2009 between the Company, the Buyers, Zhenyong Liu and the Escrow Agent, incorporated by reference to the exhibit to our Current Report on form 8-K filed with the SEC on October 8, 2009

 10.13

 Registration Rights Agreement between the Company and the Buyers dated October 7, 2009, incorporated by reference to the exhibit to our Current Report on form 8-K filed with the SEC on October 8, 2009

 10.14

 Lock-Up Agreement between Company and Zhenyong Liu dated October 7, 2009, incorporated by reference to the exhibit to our Current Report on form 8-K filed with the SEC on October 8, 2009

 10.15

 Asset Purchase Agreement, dated November 25, 2009, by and between Baoding Shengde Paper Co., Ltd. and Hebei Shuangxing Paper Co., Ltd., incorporated by reference to the exhibit to our Current Report on form 8-K filed with the SEC on December 10, 2009

 Exhibit No.

 Description of Exhibit

 10.16

 Purchase Agreement, dated March 31, 2010, for the sale of 3,000,000 shares of Common Stock, by and between IT Tech Packaging, Inc. and Roth Capital Partners, LLC, incorporated by reference to the exhibit to Current Report on form 8-K filed with the SEC on March 31, 2010

 10.17

 Purchase Agreement, dated April 9, 2010 by and between Henan Qinyang First Paper Machine Limited and Hebei Baoding Dongfang PaperMilling Company Limited for the purchase of a series of paper machineries and equipment, incorporated by reference to the exhibit to our Current Report on form 8-K filed with the SEC on April 12, 2010

 10.18

 Letter from Mr. Zhenyong Liu regarding postponement of interest payments by IT Tech Packaging, Inc., incorporated by reference to Exhibit 10.22 to our Annual Report on Form 10-K filed on March 25, 2014.

 10.19

 Financing Limit Agreement dated as March 3, 2014 between Hebei Baoding Dongfang Paper Milling Co., Ltd. and Shanghai Pudong Development Bank Inc., Baoding Branch, incorporated by reference to Exhibit 10.23 to our Annual Report on Form 10-K filed on March 25,2014.

 10.20

 Enterprise Loan Agreement dated as of July 5, 2013 between Hebei Baoding Dongfang Paper Milling Co., Ltd. and Rural Credit Union of Xushui District, incorporated by reference to Exhibit 10.24 to our Annual Report on Form10-K filed on March 25, 2014.

 10.21

 Engagement Letter, dated as of June 3, 2014, between the Company and H.C. Wainwright & Co., LLC and amendments dated as of July 1,2014, August 19, 2014 and August 25, 2014, incorporated by reference to exhibits 1.1, 1.2, 1.3 and 1.4 to our Current Report on Form 8- K filed with the SEC on September 3, 2014.

 10.22

 Securities Purchase Agreement, dated August 25, 2014, incorporated by reference to exhibit 10.1 to our Current Report on Form 8-K filed with the SEC on September 3, 2014.

 10.23

 Appointment Letter dated November 3, 2014, by and between IT Tech Packaging, Inc. and Marco Ku Hon
 Wai, incorporated by reference to exhibit 10.1 to our Current Report on Form 8-K filed with the SEC on November 6, 2014.

 10.24

 Loan Agreement dated December 2, 2014, by and between IT Tech Packaging, Inc. and Zhenyong Liu, incorporated by reference to Exhibit 10.24 to our Annual Report on Form 10-K filed on March 25, 2014.

 10.25

 Loan Agreement dated March 1, 2015, by and between IT Tech Packaging, Inc. and Zhenyong Liu,
 incorporated by reference to Exhibit 10.25 to our Annual Report on Form 10-K filed on March 25, 2015.

 10.26

 Agreement dated July 1, 2015, among China Orient, Hebei Baoding Dongfang Paper Milling Company Limited, Baoding Shengde Paper Co.,Ltd., Zhenyong Liu, Xiaodong Liu, and Shuangxi Zhao, incorporated by reference to Exhibit 10.1 to our Current Report on Form 8-K filed with the SEC on July 22, 2015

 10.27

 Acquisition Agreement dated June 25, 2019, by and between Hebei Baoding Dongfang Paper Milling Company Limited and HebeiTengsheng Paper Co., Ltd, incorporated by reference to Exhibit 10.1 to our Current Report on Form 8-K filed with the SEC on June 28, 2019.

 Exhibit No.

 Description of Exhibit

 10.28

 Supplement
 Agreement dated December 16, 2019, by and between Hebei Baoding Dongfang Paper Milling Company Limited and Hebei Tengsheng Paper
 Co., Ltd, incorporated by reference to Exhibit 10.1 to our Current Report on Form 8-K filed with the SEC on December 17,
 2019

 10.29

 Letter Agreement dated April 21, 2020, by and between the Company and Maxim Group LLC, incorporated by reference to Exhibit 10.1 to our Current Report on Form 8-K filed with the SEC on May 1, 2020.

 10.30

 Securities Purchase Agreement dated April 29, 2020 by and between the Company and certain purchasers, incorporated by reference to Exhibit 10.2 to our Current Report on Form 8-K filed with the SEC on May 1, 2020.

 10.31

 Amendment to Securities Purchase Agreement dated May 4, 2020, by and between the Company and certain purchasers, incorporated by reference to Exhibit 10.1 to our Current Report on Form 8-K filed with the SEC on May 4, 2020.

 10.32

 Letter Agreement dated January 14, 2021, by and between the Company and Maxim Group, incorporated by reference to Exhibit 10.1 to our Current Report on Form 8-K filed with the SEC on January 20, 2021.

 10.33

 Form of Securities Purchase Agreement among the Company and certain institutional investors, incorporated by reference to Exhibit 10.2 to our Current Report on Form 8-K filed with the SEC on January 20, 2021.

 10.34

 Underwriting Agreement dated as of February 24, 2021 by and between the Company and Maxim Group LLC, incorporated by reference to the Exhibit 1.1 to our Current Report on Form 8-K filed with the SEC on March 1, 2021.

 14.1

 Code of Ethics and Business Conduct, incorporated by reference to the Exhibit 14.1 to our Annual Report on Form10-K filed with the SEC on March 18, 2013

 21.1*

 Lists of Subsidiaries

 23.1*

 Consent of WWC, P.C. Certified Accountants.

 23.2*

 Consent of GGF CPA LIMITED.

 31.1*

 Certification Required Under Section 302 of Sarbanes-Oxley Act of 2002.

 31.2*

 Certification Required Under Section 302 of Sarbanes-Oxley Act of 2002.

 32.1*

 Certification Required Under Section 906 of Sarbanes-Oxley Act of 2002.

 32.2*

 Certification Required Under Section 302 of Sarbanes-Oxley Act of 2002.

 97.1*

 Clawback Policy

 101.INS

 101.SCH

 101.CAL

 101.DEF

 101.LAB

 101.PRE

 * Filed herewith.

 Item 16 Form 10-K Summary.

 Not applicable.

 SIGNATURES

 Pursuant to the requirements of Section 13 or
15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.

 Date: March 27, 2024

 By:

 /s/ Zhenyong Liu

 Zhenyong Liu

 Chief Executive Officer

 Pursuant to the requirements of the Securities
Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and
on the dates indicated.

 Name

 Title

 Date

 /s/ Zhenyong Liu

 Chief Executive Officer and Chairman of the
 Board

 Zhenyong Liu

 (principal executive officer)

 /s/ Jing Hao

 Chief Financial Officer

 Jing Hao

 (principal financial and accounting officer)

 /s/ Fuzeng Liu

 Fuzeng Liu

 /s/ Marco Ku Hon Wai

 Marco Ku Hon Wai

 /s/ Wenbing Christopher Wang

 Wenbing Christopher Wang

 /s/ LushaNiu

 LushaNiu

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