IT Tech Packaging is a U.S.-listed holding company that operates a paper manufacturing business in China through its VIE structure, Dongfang Paper, based in Baoding, Hebei Province. The business is almost entirely focused on corrugating medium paper (CMP), a commodity input used to make corrugated cardboard for packaging, which accounted for roughly 100% of production volume and nearly all revenue in FY24. IT Tech Packaging sells CMP directly to corrugated cardboard manufacturers and packaging companies, primarily concentrated in North China — Hebei, Tianjin, and Shandong provinces. The company operates two active CMP production lines with combined designed capacity of 420,000 tonnes/year. Profitability is driven by the spread between CMP selling prices and the cost of recycled cardboard (OCC), the primary raw material, which is volatile and unhedged. The company's location roughly 100 km from Beijing and Tianjin reduces freight costs on both inbound raw materials and outbound deliveries, which it argues gives it a cost advantage over more distant competitors. Customer concentration is meaningful — the top 10 customers accounted for about 64% of revenue in FY24 — and supply chain concentration is similarly notable, with two suppliers accounting for roughly 90% of purchases. The company has idle production lines for offset printing paper, tissue paper, and face masks, none of which generated revenue in FY24. IT Tech Packaging is also renovating a production line for specialty papers, though it is not yet operational.