IT Tech Packaging, Inc. (ITP): Business Model Canvas [Dec-2025 Updated]

You're looking to understand the nuts and bolts of IT Tech Packaging, Inc. (ITP)'s strategy now that 2025 is winding down, and frankly, the numbers tell a story of pressure. Despite an operating loss of $6.13 million for the first nine months of the year, they still pulled in $25.60 million in Q3 revenue, with Corrugating Medium Paper (CMP) making up 100% of that top line. To see how they are managing raw material costs and serving their North China industrial base, we need to map out their entire operation. Below, I've distilled their entire business model into the nine essential blocks, using the latest facts you need to make a decision.

IT Tech Packaging, Inc. (ITP) - Canvas Business Model: Key Partnerships

You're looking at the critical external relationships IT Tech Packaging, Inc. (ITP) relies on to execute its paper product manufacturing and distribution model in North China. These aren't just vendors; they are integral to the flow of raw materials and capital.

The company's reliance on external financing partners was evident in May 2025. ITP completed a public offering to secure necessary working capital.

Maxim Group LLC served as the sole placement agent for this offering, which was conducted under a shelf registration statement declared effective by the SEC on April 14, 2023.

Governance and compliance rely on external auditors. The ratification of the independent registered public accounting firm for the 2025 fiscal year was a key item at the 2025 Annual General Meeting.

• Independent Registered Public Accounting Firm: GGF CPA LTD.
• Fiscal Year End for Ratification: December 31, 2025
• Ratification Date (AGM): October 31, 2025

Raw material sourcing is foundational, given that ITP uses recycled paper as its primary input for most products. While specific 2025 supplier contracts aren't detailed, historical relationships point to major industry players.

Suppliers of recycled paper and wood pulp:

• Primary Raw Material: Recycled paper (except for tissue paper products).
• Key Wood Pulp Supplier (Historical Reference): Asia Symbol (Shandong) Pulp and Paper Co., Ltd., noted as China's largest wood pulp producer.

Customer concentration is a factor, with a significant portion of revenue likely tied to a few large accounts. The company's production base in Hebei Province is strategically located near major consumption markets like Beijing and Tianjin.

Top B2B Customers:

• The customer base includes a key client located in Shandong Province, historically counted among the top five clients.

Logistics and distribution depend on established networks across North China. While specific logistics partners aren't named, the operational footprint defines the service area.

The company's ability to move product efficiently from Hebei Province is a direct function of these logistics relationships. Finance: draft 13-week cash view by Friday.

IT Tech Packaging, Inc. (ITP) - Canvas Business Model: Key Activities

You're looking at the core engine of IT Tech Packaging, Inc. (ITP)-what they actually do day-to-day to make money. It's all about turning recycled fiber into paper products and getting it to market in North China. Here's the quick math on their recent operational focus.

Manufacturing corrugating medium paper (CMP) and tissue products is the main game. For the nine months ended September 30, 2025, the company's revenue was $61.29 million, driven by CMP sales volume increases, though the average selling prices (ASPs) for CMP products saw some pressure. The tissue paper segment is also a key output, though specific volume data for it isn't broken out separately in the latest reports.

Here's a look at the Corrugating Medium Paper (CMP) sales performance for the third quarter of 2025:

Managing raw material procurement, especially recycled paper, is critical because it's their primary input, except for tissue products. The pressure on profitability is evident; for the nine months ended September 30, 2025, the gross profit decreased by 39.45% year-over-year to $3.38 million, primarily due to the decline in CMP ASPs and increased unit cost of materials. That cost management is definitely a focus area.

Sales and distribution across the North China domestic market is where they move the product. IT Tech Packaging, Inc. is strategically located near the Beijing and Tianjin region, which is one of the largest markets for paper product consumption in the country. The company is a manufacturer and distributor.

Operating production facilities in Baoding and Xingtai, Hebei Province forms the physical backbone of the operation. The company has 383 total employees as of November 28, 2025. The operations are managed through subsidiaries like Dongfang Paper and Tengsheng Paper.

The status of the third product line is an important operational update:

• Production of offset printing paper was suspended from 2024 through September 2025.
• Offset printing paper production is expected to resume at the end of 2025.
• The company also produces tissue paper products, including toilet paper and paper napkins.

For context on the overall financial activity supporting these operations in the near term, the trailing twelve-month revenue as of September 30, 2025, stood at $78.9M. Finance: draft 13-week cash view by Friday.

IT Tech Packaging, Inc. (ITP) - Canvas Business Model: Key Resources

You're looking at the core assets IT Tech Packaging, Inc. (ITP) relies on to run its paper production and distribution business in North China as of late 2025. These are the tangible and human capital foundations.

The company's operational structure is anchored by its manufacturing segments, which are key physical resources. These segments are responsible for the production of corrugating medium paper, offset printing paper, and various tissue products.

The physical footprint includes a significant production base in Wei County, Hebei Province, China, which served as the location for the 2025 annual general meeting of stockholders on October 31, 2025. This base is central to the company's manufacturing and distribution network.

Raw material sourcing is a critical resource, specifically the recycled paper inventory and supply chain. IT Tech Packaging, Inc. uses recycled paper as its primary raw material for most of its paper products, excluding its tissue paper lines. This reliance on recycled inputs is a defining characteristic of their material resource strategy.

The human capital supporting these operations is quantified. As of the latest available data, IT Tech Packaging, Inc. maintains a workforce of 383 full-time employees.

Proprietary assets include the established product brands that facilitate market recognition and sales. The company markets its tissue paper products, which include toilet paper, boxed and soft-packed tissues, handkerchief tissues, paper napkins, and bathroom/kitchen paper towels, under the Dongfang Paper brand.

• Total full-time employees: 383.
• Primary raw material: Recycled paper (for most products).
• Key physical asset location: Wei County Production Base, Hebei Province, China.
• Cash on hand (as of late 2025 data): $8.07m.

Finance: review Q4 2025 raw material procurement contracts by end of next week.

IT Tech Packaging, Inc. (ITP) - Canvas Business Model: Value Propositions

You're looking at the core value IT Tech Packaging, Inc. (ITP) delivers to its customers in North China as of late 2025. It's a mix of product breadth and cost advantage rooted in their operational setup.

The product portfolio is definitely diversified, moving beyond core industrial needs into consumer and health-related items. This spread helps IT Tech Packaging, Inc. (ITP) serve a wider base of industrial and manufacturing activities in the region.

• Corrugating Medium Paper (CMP) for corrugating cardboard manufacturers.
• Offset printing paper for printing companies.
• Tissue paper products under the Dongfang Paper brand, including toilet papers, boxed and soft-packed tissues, handkerchief tissues, and paper napkins.
• Bathroom and kitchen paper towels.
• Non-medical single-use face masks and medical face masks.

A key element of the value proposition is the focus on cost-effective packaging material. IT Tech Packaging, Inc. (ITP) uses recycled paper as its primary raw material for most of its output, which is a direct cost advantage, except for its tissue paper products.

The physical location is a major factor supporting this value. IT Tech Packaging, Inc. (ITP)'s production bases in Baoding and Xingtai, Hebei Province, place it strategically close to the Beijing and Tianjin region, which is a massive market for paper product consumption.

Here are the specific numbers reflecting the core paper product value proposition for Q3 2025:

The high-volume production capacity supports the North China industrial base. For the nine months ended September 30, 2025, total revenue reached $61.29 million, driven by CMP sales volume increases. The company has 383 employees as of December 3, 2025, supporting operations in Baoding, China.

IT Tech Packaging, Inc. (ITP) - Canvas Business Model: Customer Relationships

You're looking at how IT Tech Packaging, Inc. (ITP) keeps its customers engaged across its different product lines, which range from industrial paper to consumer goods like tissue and masks. The relationship style definitely shifts based on what you're selling and who you're selling it to.

Dedicated B2B sales and account management for top clients

For the core industrial paper products-corrugating medium paper (CMP) and offset printing paper-the relationship is definitely high-touch. These are the bulk of the sales, given that revenue for the nine months ending September 30, 2025, hit $61.29 million. The sales volume for CMP was up 1.07% year-over-year for that period, suggesting ongoing, managed supply agreements are in place.

The focus here is on managing large-volume, recurring orders, which requires dedicated account managers who understand the client's manufacturing schedules in the North China region, close to Beijing and Tianjin.

Intimate customer service and technical support for industrial buyers

Industrial buyers of CMP need reliability; if the paper quality or delivery schedule slips, their entire production line can stop. So, ITP must offer what feels like intimate service. While I don't have ITP's specific customer satisfaction scores, industry trends suggest that poor support drives customers away fast.

Technical support likely centers on specifications, like ensuring the Average Selling Price (ASP) for Regular CMP remains competitive, which was $340/tonne in Q3 2025. Technical alignment on material specs is key to preventing churn in this segment.

Transactional relationship for general consumer tissue and mask sales

When you look at tissue paper products and single-use face masks, the relationship flips to being much more transactional. These sales likely flow through distributors or large retail channels, meaning the end-user interaction is minimal for ITP.

The Q1 2025 sales figure of USD 10.9 million shows a significant volume of transactions, but these are less about long-term partnership management and more about efficient logistics and competitive pricing for high-volume, lower-margin items. It's about getting the product on the shelf or to the end-user quickly.

Focus on stable, long-term partnerships with key customers

For the industrial side, stability is everything. The general business statistic is that retaining existing customers is about five times more cost-effective than acquiring new ones. Also, companies typically generate 65% of their revenue from repeat customers.

ITP's strategy here is to lock in those high-volume CMP and offset printing contracts. A 5% increase in retention, industry-wide, can boost profits by 25% to 95%, so you can bet ITP prioritizes keeping those top-tier industrial accounts happy through service agreements and consistent quality.

Here's a quick look at the top-line revenue context for 2025:

The customer relationship structure is definitely bifurcated. You have the deep, technical, partnership-driven approach for the paper mills, and the high-volume, efficiency-driven transactional approach for the tissue and mask segments. It's a necessary split, defintely.

• Dedicated account managers for CMP and offset printing contracts.
• Technical support focused on material specifications and delivery uptime.
• Transactional sales for tissue paper and single-use face masks.
• Long-term focus aims to capture the 65% of revenue from repeat customers.

Finance: draft 13-week cash view by Friday.

IT Tech Packaging, Inc. (ITP) - Canvas Business Model: Channels

You're looking at how IT Tech Packaging, Inc. (ITP) gets its paper products-corrugating medium paper (CMP), offset printing paper, and tissue paper-to its industrial and manufacturing customers across North China. The channels are deeply tied to its production base in Baoding and Xingtai in Hebei Province, placing it strategically near the large consumption markets of Beijing and Tianjin.

The company's sales structure relies on a mix of direct engagement and established operational segments. The core of the sales activity is channeled through its operating segments, which include Dongfang Paper, Tengsheng Paper, and Baoding Shengde. These entities are key to moving the product, which is the output of the channels.

Here's a look at the scale of the business that these channels are moving, based on the latest reported figures for the nine months ended September 30, 2025:

The direct sales force targets B2B customers, specifically those making corrugating cardboard and printing companies. This direct interaction is crucial for securing the volume of CMP and offset printing paper. The domestic distribution network is the workhorse for reaching the broader market across North China, covering areas like Hebei and Shandong. We know the company is located strategically close to the Beijing and Tianjin region, which is one of the largest markets for paper products consumption in the country.

The company maintains a digital presence for external communication, though specific channel performance data isn't publically broken down by channel type. You can find corporate updates and filings on the company website:

• Company Website URL: https://www.itpackaging.cn
• Investor Relations: Information is made available through filings and press releases, such as the announcement of the 2025 Annual General Meeting of Stockholders held on October 31, 2025.

Sales through subsidiaries are integral, as these segments represent the operational arms that execute the distribution. For instance, the tissue paper products, which include toilet paper, boxed and soft-packed tissues, and paper napkins, are offered under the Dongfang Paper segment. The overall financial health supports these operations, with Total Assets reported at $175.70 million against Total Debt of $9.82 million as of recent filings.

The average selling prices (ASP) for the main product line in Q3 2025 give you a sense of the value being moved through these channels:

• Regular Corrugating Medium Paper (CMP) ASP: $340/tonne
• Light-Weight CMP ASP: $331/tonne

Finance: draft 13-week cash view by Friday.

IT Tech Packaging, Inc. (ITP) - Canvas Business Model: Customer Segments

You're looking at the customer base for IT Tech Packaging, Inc. (ITP) as of late 2025. The company's business is rooted in North China, with production in Baoding and Xingtai, Hebei Province, which positions it near the Beijing/Tianjin region, a major hub for industrial and manufacturing activity and significant paper consumption.

IT Tech Packaging, Inc. (ITP) serves distinct business-to-business (B2B) and potentially business-to-consumer (B2C) groups through its core paper product lines. The overall scale of the business serving these segments is reflected in the recent financial filings. For the third quarter ending September 30, 2025, total revenue was $25.60 million, representing a 2.07% year-over-year increase. The trailing twelve-month revenue, as of that same date, stood at $78.94 million.

Here is a breakdown of the customer groups IT Tech Packaging, Inc. (ITP) targets based on their product offerings:

• Corrugating cardboard manufacturers in China, who purchase corrugating medium paper (CMP).
• Printing companies requiring offset printing paper.
• General consumers and retailers for tissue paper products, such as toilet paper, boxed tissues, and paper napkins.
• Industrial and commercial buyers for single-use face masks, a product line that includes non-medical and medical types.

The company's primary focus, based on recent revenue drivers, appears to be on the paper packaging side, specifically CMP. For the nine months ended September 30, 2025, revenue growth was mainly attributed to the increase in CMP sales volume. The sales volume for CMP in Q3 2025 was 75,686 tonnes. The average selling prices (ASP) for CMP in that quarter were $340/tonne for regular CMP and $331/tonne for light-weight CMP.

The customer segments and associated financial context are summarized below. Note that the revenue figures are for the total company, as a specific revenue split per segment is not publicly detailed in the latest reports.

The proximity to the Beijing/Tianjin industrial region suggests this area is a key geographic market for IT Tech Packaging, Inc. (ITP), as it is described as one of the largest markets for paper products consumption in the country. The company operates through segments like Dongfang Paper and Tengsheng Paper for CMP and offset paper, and Baoding Shengde for face masks and digital photo paper.

For the tissue paper segment, the offerings include toilet paper, boxed and soft-packed tissues, handkerchief tissues, and paper napkins, alongside bathroom and kitchen paper towels. The overall gross margin for the nine months ended September 30, 2025, was 7.90%, up 0.26 percentage points year-over-year, despite a decrease in the ASPs of CMP products over that nine-month period.

Finance: draft 13-week cash view by Friday.

IT Tech Packaging, Inc. (ITP) - Canvas Business Model: Cost Structure

You're looking at the cost side of IT Tech Packaging, Inc. (ITP)'s operations as of late 2025, and frankly, the numbers show significant pressure, especially on the input side. The cost structure is heavily influenced by material prices and the fixed nature of running multiple production lines.

The financial results for the nine months ended September 30, 2025, clearly illustrate where the costs are hitting the bottom line. The loss from operations for this nine-month period was a substantial $\mathbf{\$6.13 \text{ million}}$. This compares unfavorably to the loss from operations of $\mathbf{\$4.42 \text{ million}}$ reported for the same nine-month period last year.

The pressure on profitability is evident when you look at gross margins. For the nine months ended September 30, 2025, gross profit fell by $\mathbf{39.45\%}$ year-over-year, with one of the primary drivers being the increased unit cost of materials. This trend was also seen in the first half of 2025, where gross profit decreased by $\mathbf{62.95\%}$ year-over-year, again citing the increased unit cost of materials.

Here is a quick look at the key financial figures impacting the cost structure:

The cost structure is built around several key expense categories that you need to track closely. These are the structural costs that are harder to adjust quickly:

• High cost of raw materials (recycled paper/pulp), which increased unit cost in 2025.
• Manufacturing and production overhead for multiple paper lines.
• Distribution and logistics costs across North China.
• Labor costs for the $\mathbf{383}$ employees.

The manufacturing overhead is a fixed component tied to running the different paper lines, which means sales volume fluctuations hit operating leverage hard when costs are rising. If onboarding takes 14+ days, churn risk rises, but here, the fixed overhead means capacity utilization is key to absorbing those costs.

IT Tech Packaging, Inc. (ITP) - Canvas Business Model: Revenue Streams

You're looking at the core of how IT Tech Packaging, Inc. (ITP) is bringing in cash as of late 2025. Honestly, the picture is very focused right now. The latest figures show an almost complete reliance on one product line for the most recent quarter.

For the three months ended September 30, 2025, the total revenue hit $25.60 million. That's up 2.07% year-over-year from the same quarter last year. When you look at the bigger picture for the year so far, the total revenue for the nine months ended September 30, 2025, was $61.29 million, showing a 5.32% year-over-year increase. Here's the quick math on where that Q3 money came from:

What this estimate hides is any revenue from tissue paper products or printing/photo papers in that specific quarter; the reports clearly state CMP accounted for 100% of the total. This concentration is definitely something to watch, especially given the gross profit challenges mentioned in the same period.

To give you a clearer view of the recent performance driving these streams, here are the key top-line financial metrics:

• Nine Months Ended September 30, 2025 Revenue: $61.29 million
• Q3 2025 Revenue: $25.60 million
• Q3 2025 CMP Sales Volume: 75,686 tonnes
• Q3 2025 Gross Margin: Up 0.26 percentage points to 7.90%
• Nine Months Ended September 30, 2025 Gross Profit: Decreased by 39.45% year-over-year to $3.38 million

The primary driver for the Q3 revenue increase was the combination of higher sales volume of Corrugating Medium Paper (CMP) and an increase in the average selling prices (ASP) for CMP. Still, the nine-month figures show that while volume helped, a decline in CMP ASPs and increased material costs pressured the gross profit significantly. Finance: draft 13-week cash view by Friday.