Financial Performance - Revenue for the six months ended June 30, 2022, was RMB 195,529 thousand, a decrease of 6.3% from RMB 208,001 thousand in the same period of 2021[14]. - Gross profit for the same period was RMB 43,888 thousand, down 13.7% from RMB 50,866 thousand in 2021[14]. - Operating profit decreased to RMB 23,590 thousand, a decline of 20.2% compared to RMB 29,548 thousand in the previous year[14]. - Net profit for the period was RMB 19,966 thousand, representing a decrease of 19.5% from RMB 24,865 thousand in 2021[14]. - Basic and diluted earnings per share were RMB 0.03, down from RMB 0.04 in the same period last year[14]. - The company achieved a profit of RMB 19,966 thousand for the six months ended June 30, 2022, compared to a profit of RMB 24,865 thousand for the same period in 2021, showing a decrease of approximately 19.1%[28]. - Total profit and comprehensive income decreased from approximately RMB 24.9 million for the six months ended June 30, 2021, to approximately RMB 20.0 million in the reporting period, a decrease of approximately RMB 4.9 million or 19.7%[147]. Assets and Liabilities - Total assets as of June 30, 2022, were RMB 27,056 thousand, a decrease from RMB 28,607 thousand at the end of 2021[19]. - As of June 30, 2022, total assets amounted to RMB 383,058 thousand, an increase from RMB 293,726 thousand as of December 31, 2021, representing a growth of approximately 30.4%[23]. - Total equity reached RMB 218,130 thousand as of June 30, 2022, compared to RMB 100,997 thousand as of December 31, 2021, indicating a significant increase of about 116.5%[28]. - The total liabilities decreased to RMB 164,928 thousand as of June 30, 2022, down from RMB 192,729 thousand as of December 31, 2021, reflecting a reduction of approximately 14.5%[25]. - The company's total liabilities, including trade payables and bank borrowings, amounted to RMB 149,168,000 as of June 30, 2022, compared to RMB 128,258,000 as of December 31, 2021[113]. Cash Flow and Financing - The company reported a net cash inflow from operating activities of RMB 23,802 thousand for the six months ended June 30, 2022, a recovery from a cash outflow of RMB 13,535 thousand in the same period of 2021[30]. - The company incurred financing costs of RMB 209 thousand, a significant decrease from RMB 545 thousand in the previous year[14]. - The company's cash and cash equivalents at the end of the period were RMB 45,925 thousand, a decrease from RMB 58,578 thousand at the beginning of the period, representing a decline of about 21.6%[30]. - The weighted average effective interest rate on bank borrowings was 3.85% as of June 30, 2022, down from 5.32% as of December 31, 2021[116]. Revenue Sources - For the six months ended June 30, 2022, the revenue from cigarette packaging paper sales was RMB 195,283,000, a decrease of 6% from RMB 207,914,000 in the same period of 2021[60]. - The processing service income increased significantly to RMB 246,000, compared to RMB 87,000 in the previous year, marking a growth of 183%[60]. - The company received government subsidies related to revenue amounting to RMB 333,000, while other income totaled RMB 1,078,000 for the first half of 2022, compared to RMB 653,000 in 2021[65]. Operational Challenges - The company faces challenges in operations due to COVID-19 outbreaks and record high temperatures leading to power shortages in key regions[136]. - The company has voluntarily adjusted its operating hours to comply with local government requests to manage electricity supply, which may impact production capacity[136]. Employee and Governance - The total employee cost incurred by the company was approximately RMB 62 million, compared to RMB 60 million for the same period in 2021, reflecting a year-on-year increase of about 3.33%[164]. - The company had a total of 125 employees as of June 30, 2022, up from 114 employees as of June 30, 2021, indicating an increase of approximately 9.65% in workforce size[164]. - The company has complied with the corporate governance code as per the listing rules since its listing date on June 30, 2022[167]. Shareholder Information - As of June 30, 2022, Mr. Chen Wei Zhuang held 339,040,000 shares, representing 42.38% of the company's equity, through a controlled corporation[171]. - Mr. Yu Tian Bing held 96,000,000 shares, representing 12.00% of the company's equity, also through a controlled corporation[171]. - The major shareholder, Cheng Yi, holds 339,040,000 shares, which is 42.38% of the company's equity[176].