Company Overview - The company successfully listed on the Beijing Stock Exchange on January 18, 2022, after receiving approval from the China Securities Regulatory Commission for public stock issuance[3]. - The company is recognized as a "High-tech Enterprise" and has achieved national-level recognition for its specialized and innovative capabilities[34]. - The company primarily operates through a direct sales model, with most sales occurring directly in domestic and international markets[33]. Financial Performance - The company's operating revenue for the current period is CNY 141,948,771.67, a decrease of 14.55% compared to the same period last year[25]. - The net profit attributable to shareholders of the listed company is CNY 12,916,806.58, down 47.56% year-on-year[25]. - The gross profit margin decreased to 28.15% from 34.28% in the previous year[25]. - The weighted average return on equity based on net profit attributable to shareholders is 3.33%, down from 10.77%[25]. - The company's cash flow from operating activities increased by 78.79% to CNY 4,953,614.56[27]. - The company's total assets increased by 43.58% to CNY 532,620,961.26 compared to the end of the previous year[26]. - The company's net assets increased by 67.00% to ¥419,414,557.24 as of June 30, 2022[35]. - The company's investment income increased by 132.44% to ¥436,763.34, attributed to increased structured deposits[48]. Risks and Challenges - The company faces risks related to the concentration of major customers, which could negatively impact operations if demand decreases or customers switch suppliers[10]. - The company is exposed to raw material price fluctuations, which are linked to international commodity prices, potentially affecting production costs[10]. - The company has implemented measures to mitigate risks associated with talent loss and technology leakage, which could impact competitive advantage[10]. - The company is facing risks related to fluctuations in raw material prices, which are linked to international commodity prices, and has implemented price adjustment clauses in contracts with major clients[64]. - The company has a high gross profit margin, but increased industry competition may pressure pricing strategies and affect profitability[11]. Corporate Governance - The actual controller holds absolute control, which could lead to risks of improper control affecting the interests of minority shareholders; the company has implemented governance structures to mitigate this risk[67]. - The company has established a comprehensive internal control system to ensure objective decision-making in major matters, enhancing governance and protecting minority shareholder interests[67]. - The company is committed to improving its governance structure to ensure shareholders can fully exercise their rights and protect the interests of minority shareholders[100]. Shareholder Information - Major shareholders include Qin Wenping with 8,997,000 shares (27.91%) and Zhang Yujun with 7,994,100 shares (24.80%), collectively holding 70.25% of the total shares[121]. - The total number of ordinary shares increased from 22,765,700 to 32,235,145, reflecting a significant issuance of 9,469,445 shares during the period[117]. - The company has a total of 4,631 ordinary shareholders as of the end of the reporting period[116]. Market and Industry Trends - The global plastic packaging industry is expanding, driven by modern commerce and logistics, with a growing demand for high-barrier packaging materials[39]. - The plastic film manufacturing industry has seen significant growth, with domestic production increasing from 12.618 million tons in 2014 to 14.543 million tons in 2017[38]. Research and Development - The company holds a total of 49 patents, including 13 invention patents and 35 utility model patents, as of June 30, 2022[35]. - The company's R&D expenses increased by 2.37% to ¥7,438,723.83, representing 5.24% of operating revenue[46]. - The company is focused on R&D and technological innovation, aiming to enhance its product offerings and market reach[35]. Environmental and Social Responsibility - The company has implemented strict environmental protection measures to ensure compliance with regulations and maintain sustainable operations[63]. - The company is committed to enhancing its social responsibility by ensuring timely tax payments and creating a good working environment for employees[62]. Fundraising and Capital Management - The company raised a total of CNY 176,889,232.60 from the public offering of 9,469,445 shares, with a net amount of CNY 161,791,880.50 after deducting issuance costs[129]. - The funds raised will be used for the expansion of production lines for plastic packaging, aluminum-plastic packaging materials, and products at the wholly-owned subsidiary Nanjing Huhui Packaging Technology Co., Ltd.[129]. - The company has established a fundraising management system to ensure the proper use of raised funds according to the prospectus[130]. Commitments and Compliance - The company will ensure that all disclosures are accurate and complete, taking legal responsibility for any inaccuracies[96]. - The company has made commitments regarding compensation and accountability for any breaches of promises made in the prospectus, including potential compensation for investor losses[104]. - The company will publicly explain any failure to fulfill commitments and apologize to shareholders if it does not comply with its obligations[99].

Financial Performance - Operating revenue for the first quarter of 2022 was RMB 70,960,917.90, a decrease of 14.31% compared to RMB 82,810,226.06 in the same period last year[16][18] - Net profit attributable to shareholders dropped by 57.87% to RMB 6,054,975.54, mainly due to rising raw material costs and decreased revenue impacted by the pandemic[16][18] - Basic earnings per share fell by 66.67% to RMB 0.21, reflecting the decline in net profit[16][18] - Total revenue for Q1 2022 was CNY 70,960,917.90, a decrease of 14.4% compared to CNY 82,810,226.06 in Q1 2021[41] - Net profit for Q1 2022 was CNY 6,054,975.54, a decrease of 57.9% from CNY 14,372,821.74 in Q1 2021[43] - The company reported a total profit of CNY 6,424,317.01 for Q1 2022, down from CNY 16,575,107.72 in Q1 2021, a decline of 61.2%[43] - The net profit for the current period is 5,688,114.26, compared to 13,021,545.81 in the previous period, indicating a decrease of approximately 56.2%[46] - Basic and diluted earnings per share are both 0.20, down from 0.57 in the previous period, reflecting a decline of about 64.9%[46] Assets and Liabilities - Total assets increased by 43.17% year-on-year, reaching RMB 531,115,690.31 as of March 31, 2022, primarily due to fundraising of RMB 177 million from the listing on the Beijing Stock Exchange[16][18] - Current assets totaled ¥337,296,757.08, up from ¥192,104,984.22, indicating a significant increase of about 75.5%[34] - Non-current assets reached ¥193,818,933.23, compared to ¥178,856,715.74, reflecting an increase of approximately 8.4%[35] - Total liabilities decreased to ¥112,122,936.31 from ¥119,808,800.82, showing a reduction of about 6.4%[36] - Shareholders' equity rose to ¥418,992,754.00 from ¥251,152,899.14, marking an increase of approximately 66.8%[36] - The total liabilities and equity reached CNY 514,105,374.12 in 2022, compared to CNY 351,179,926.77 in 2021, indicating a growth of 46.4%[40] Cash Flow - Net cash flow from operating activities improved by 73.21%, amounting to RMB -3,833,890.71, due to reduced cash payments for goods and services[16][18] - Cash inflow from operating activities totaled 64,612,725.76, an increase from 61,800,377.15, representing a growth of approximately 2.6%[49] - Cash outflow from operating activities was 68,446,616.47, down from 76,109,963.01, showing a decrease of about 10.9%[49] - The net cash flow from operating activities is -3,833,890.71, an improvement from -14,309,585.86 in the previous period[49] - Cash flow from investing activities resulted in a net outflow of -16,612,532.22, worsening from -8,464,462.50 previously[49] - Cash flow from financing activities generated a net inflow of 161,960,818.80, compared to a net outflow of -774,556.93 in the previous period[49] - The total cash and cash equivalents at the end of the period increased to 195,089,818.39 from 42,320,296.01, marking a significant rise[49] - The company received 163,321,075.73 in cash from investment activities, indicating strong financing support[50] Shareholder Information - The company’s registered capital is RMB 32,235,145, with its main operations located in Nanjing, Jiangsu Province[14] - The total share capital increased from 22,765,700 shares to 32,235,145 shares after the company's listing on January 18, 2022[31] - The number of shareholders holding more than 5% of shares includes Qin Wenping with 27.91% (8,997,000 shares) and Zhang Yujun with 24.80% (7,994,100 shares)[24] - The company has a total of 5,089 common shareholders[23] - The total shares held by the top ten shareholders account for 71.25% of the total shares, with a total of 22,970,047 shares[26] - The company is actively managing its shareholder relationships, with family ties among some major shareholders[26] Compliance and Governance - The company reported no significant litigation or arbitration matters during the reporting period[30] - There were no external guarantees or loans provided to shareholders or related parties during the reporting period[30] - The company has complied with all disclosure obligations regarding major transactions and commitments[30] - The company has not engaged in any share buyback activities during the reporting period[30] - The company has successfully completed its listing process, increasing its total share capital significantly[31] Research and Development - Research and development expenses for Q1 2022 were CNY 3,827,603.54, an increase of 32.5% compared to CNY 2,889,517.84 in Q1 2021[41]

Financial Performance - The company's operating revenue for 2021 was CNY 328,537,216, representing a 42.03% increase compared to CNY 231,323,263 in 2020[31]. - The net profit attributable to shareholders for 2021 was CNY 42,647,226.10, which is a 30.55% increase from CNY 32,666,574.38 in 2020[31]. - The company's gross profit margin for 2021 was 32.56%, indicating a relatively high level of profitability[14]. - The company's gross profit margin decreased to 32.56% from 36.45% in the previous year, indicating a rise in the cost of goods sold, which amounted to ¥221,552,727.18, up 50.72% year-on-year[64]. - The company achieved a year-on-year revenue growth of 42.03% and a net profit growth of 30.55%[52]. - The basic earnings per share for 2021 increased to 1.87, a 30.53% rise from 1.43 in 2020[31]. - The net profit after deducting non-recurring gains and losses was CNY 39,983,105, down by 0.71% compared to the preliminary earnings report[40]. - The company's total assets at the end of 2021 amounted to CNY 370,961,699.96, reflecting a 16.90% increase from CNY 317,343,273.69 at the beginning of the year[33]. - The total liabilities increased by 18.78% year-on-year, reaching CNY 119,808,800.82[52]. - The net assets totaled CNY 251,152,899.14, reflecting a year-on-year growth of 16.02%[52]. Shareholder Information - The total share capital increased from 22,765,700 shares to 32,235,145 shares following the company's listing on January 18, 2022[27]. - The company has 22,765,700 shares outstanding, with 93.96% being subject to trading restrictions[161]. - The largest shareholder, Qin Wenping, holds 39.52% of the shares, with a slight decrease of 3,000 shares from the previous period[162]. - The total shareholding of the controlling shareholders, Zhang Yujun and Qin Wenping, is 74.63%, with Zhang Yujun holding 35.11% and Qin Wenping holding 39.52%[167]. - The company has a total of 74 shareholders, indicating a diverse ownership structure[161]. Dividends and Profit Distribution - The company distributed a cash dividend of RMB 3.50 per 10 shares, totaling RMB 7,967,995.00, based on a total share capital of 22,765,700 shares[6]. - The company has outlined a profit distribution policy in its articles of association and has developed a three-year dividend plan for shareholders following its listing on the Beijing Stock Exchange[145]. - The company plans to distribute a cash dividend of 2 yuan per 10 shares and issue 5 shares for every 10 shares held[179]. - The company has not proposed any profit distribution plan during the reporting period despite having positive earnings[180]. Research and Development - The company's R&D expenses rose by 47.14% to ¥16,870,642.62, reflecting increased investment in new product and material development[65]. - The company has 54 R&D personnel, accounting for 13.72% of the total workforce, an increase from 13.40%[91]. - The company is currently engaged in several R&D projects, including high-temperature aluminum-plastic composite bags and robotic production lines[93]. - Research and development (R&D) expenses for the period were ¥16,870,642.62, representing 5.14% of operating revenue, an increase from 4.96% in the previous period[90]. Risks and Challenges - The company faces risks related to raw material price fluctuations, which could impact production costs and operational stability[13]. - The company is exposed to risks from fluctuations in raw material prices, which are linked to international commodity prices[109]. - The company’s foreign sales accounted for 15.17% of its main business revenue, which may be adversely affected by the global COVID-19 pandemic[112]. - The company has not experienced significant changes in major risks during the reporting period[14]. Corporate Governance and Compliance - The company emphasizes the importance of governance and compliance with laws and regulations to protect shareholder rights and ensure effective oversight by the board and supervisory committee[145]. - The company has committed to reducing related party transactions to ensure fair market practices[154]. - The company has established a commitment to avoid any actions that could harm the interests of minority shareholders[155]. - The company actively fulfills its social responsibilities, including timely tax payments and creating a good working environment for employees[102]. Subsidiaries and Partnerships - The company established a wholly-owned subsidiary, Huizhou Hujiang New Materials Co., Ltd., with a registered capital of RMB 50 million[5]. - The company has established stable partnerships with well-known enterprises like BASF and DSM, which are crucial for its business operations[13]. - The main subsidiary, Nanjing Huhui Packaging Technology Co., Ltd., reported a revenue of ¥82,349,862.65 and a net profit of ¥5,458,169.39[87]. Legal and Financial Commitments - The company recognized a lease liability of CNY 3,798,827.64 as of January 1, 2021, under the new leasing standards[99]. - The company has provided guarantees totaling ¥9,000,000, with a balance of ¥8,000,000 for subsidiaries' bank financing[121]. - The company has committed to compensating any losses incurred by investors due to non-compliance with commitments[135]. - The company will ensure compliance with new regulations regarding share reduction and will issue supplementary commitments if necessary[136].