ZW Data Action Technologies Inc. Segments Disclosure
|
21. |
Segment reporting |
The Company follows ASC Topic 280 “”, which requires that companies disclose segment data based on how management makes decisions about allocating resources to segments and evaluating their performance. Reportable operating segments include components of an entity about which separate financial information is available and which operating results are regularly reviewed by the chief operating decision maker (“CODM”), the Company’s Chief Executive Officer, to make decisions about resources to be allocated to the segment and assess each operating segment’s performance.
For the Year Ended December 31, 2025
|
Internet Ad. and data |
IP Services |
Blockchain |
Corporate |
Inter- |
Total |
|||||||||||||||||||
|
US$(’000) |
US$(’000) |
US$(’000) |
US$(’000) |
US$(’000) |
US$(’000) |
|||||||||||||||||||
|
Revenues |
3,738 | 260 | 616 | - | - | 4,614 | ||||||||||||||||||
|
Cost of revenues |
3,510 | 191 | 560 | - | - | 4,261 | ||||||||||||||||||
|
Total operating expenses |
126 | - | - | 2,180 | (1) | - | 2,306 | |||||||||||||||||
|
Depreciation and amortization expenses included in cost of revenues and operating expenses |
21 | 191 | - | 20 | - | 232 | ||||||||||||||||||
|
Impairment on intangible assets included in operating expenses |
- | - | - | - | - | - | ||||||||||||||||||
|
Loss from operations |
102 | 69 | 56 | (2,180 | ) | - | (1,953 | ) | ||||||||||||||||
|
Impairment on long-term investments |
- | - | - | - | - | - | ||||||||||||||||||
|
Gain on disposal of subsidiaries |
- | - | - | - | - | - | ||||||||||||||||||
|
Net loss |
97 | 69 | 56 | (1,993 | ) | - | (1,771 | ) | ||||||||||||||||
|
Total assets-December 31, 2025 |
8,553 | 516 | 55 | 34,324 | (33,770 | ) | 9,678 | |||||||||||||||||
(1) Including approximately US$0.35 million share-based compensation expenses.
For the Year Ended December 31, 2024
|
Internet Ad. and data |
IP Services |
Blockchain |
Corporate(2) |
Inter- |
Total |
|||||||||||||||||||
|
US$(’000) |
US$(’000) |
US$(’000) |
US$(’000) |
US$(’000) |
US$(’000) |
|||||||||||||||||||
|
Revenues |
14,689 | - | 750 | - | 15,439 | |||||||||||||||||||
|
Cost of revenues |
14,152 | - | 841 | - | 14,993 | |||||||||||||||||||
|
Total operating expenses |
1,727 | - | - | 2,476 | (1) | - | 4,203 | |||||||||||||||||
|
Depreciation and amortization expenses included in cost of revenues and operating expenses |
29 | - | 841 | 67 | - | 937 | ||||||||||||||||||
|
Impairment on intangible assets included in operating expenses |
- | - | - | - | - | - | ||||||||||||||||||
|
Loss from operations |
(1,190 | ) | - | (91 | ) | (2,476 | ) | - | (3,757 | ) | ||||||||||||||
|
Impairment on long-term investments |
- | - | - | (2 | ) | - | (2 | ) | ||||||||||||||||
|
Gain on disposal of subsidiaries |
22 | - | - | 1 | - | 23 | ||||||||||||||||||
|
Net loss |
(1,491 | ) | - | (91 | ) | (2,187 | ) | - | (3,769 | ) | ||||||||||||||
|
Total assets-December 31, 2024 |
7,627 | - | - | 34,405 | (32,346 | ) | 9,686 | |||||||||||||||||
|
(1) |
Including approximately US$0.68 million share-based compensation expenses. |
|
(2) |
Since our Ecommerce O2O Ad and marketing services segment has been dormant and historical amounts were immaterial, the operations of this segment have been combined with the corporate segment for financial reporting purposes. Accordingly, the segment information for the year ended December 31, 2024, has been reclassified to conform to the presentation for the year ended December 31, 2025. |
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 31, 2026 | Showing above |
| 2024 | Apr 15, 2025 | |
| 2023 | Jun 28, 2024 | |
| 2022 | Apr 17, 2023 | |
| 2021 | Apr 15, 2022 | |
| 2020 | Apr 13, 2021 | |
| 2019 | May 27, 2020 | |
| 2018 | Apr 15, 2019 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.