IT TECH PACKAGING, INC. Segments Disclosure
(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:
| Year Ended December 31, 2024 | ||||||||||||||||||||||||
| Dongfang | Tengsheng | Baoding | Not Attributable | Elimination of | Enterprise-wide, | |||||||||||||||||||
| Paper | Paper | Shengde | to Segments | Inter-segment | consolidated | |||||||||||||||||||
| Revenues | $ | 75,702,427 | 135,516 | 75,837,943 | ||||||||||||||||||||
| Gross profit | 6,556,487 | 135,253 | 6,691,740 | |||||||||||||||||||||
| Depreciation and amortization | 3,842,408 | 8,814,279 | 1,564,395 | 14,221,082 | ||||||||||||||||||||
| Loss on impairment of assets | 102,490 | 102,490 | ||||||||||||||||||||||
| Interest income | 12,316 | 1,845 | 598 | 34 | 14,793 | |||||||||||||||||||
| Interest expense | 356,788 | 94,334 | 296,891 | 14,364 | 762,377 | |||||||||||||||||||
| Income tax expense | 842,401 | 36,793 | 879,194 | |||||||||||||||||||||
| Net income (loss) | 2,161,939 | (10,051,366 | ) | (440,633 | ) | (1,513,034 | ) | (9,843,094 | ) | |||||||||||||||
| Year Ended December 31, 2023 | ||||||||||||||||||||||||
| Dongfang | Tengsheng | Baoding | Not Attributable | Elimination of | Enterprise-wide, | |||||||||||||||||||
| Paper | Paper | Shengde | to Segments | Inter-segment | consolidated | |||||||||||||||||||
| Revenues | $ | 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 | ) | (9,946,035 | ) | ||||||||||||||
| As of December 31, 2024 | ||||||||||||||||||||||||
| Dongfang | Tengsheng | Baoding | Not Attributable | Elimination of | Enterprise-wide, | |||||||||||||||||||
| Paper | Paper | Shengde | to Segments | Inter-segment | consolidated | |||||||||||||||||||
| Total assets | $ | 54,180,471 | 116,390,854 | 6,020,713 | 954,748 | 177,546,786 | ||||||||||||||||||
| 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 | ||||||||||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2024 | Apr 11, 2025 | Showing above |
| 2023 | Mar 27, 2024 | |
| 2022 | Mar 24, 2023 | |
| 2021 | Mar 15, 2022 | |
| 2020 | Mar 23, 2021 | |
| 2019 | Mar 23, 2020 | |
| 2018 | Mar 7, 2019 | |
| 2017 | Apr 17, 2018 | |
| 2016 | Mar 22, 2017 | |
| 2015 | Mar 23, 2016 | |
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.