Financial Performance - The company's operating revenue for 2020 was CNY 704,234,024.67, representing a 5.03% increase compared to CNY 670,537,099.64 in 2019[21]. - The net profit attributable to shareholders for 2020 was CNY 107,672,242.09, a 2.49% increase from CNY 105,056,877.11 in 2019[21]. - The net profit excluding non-recurring gains and losses decreased by 1.45% to CNY 94,318,490.09 from CNY 95,703,186.17 in 2019[21]. - Cash flow from operating activities was CNY 104,408,110.13, down 31.91% from CNY 153,347,903.74 in 2019[21]. - Total assets at the end of 2020 were CNY 1,099,422,349.20, a 5.60% increase from CNY 1,041,086,191.78 at the end of 2019[21]. - The net assets attributable to shareholders increased by 8.27% to CNY 902,046,677.01 from CNY 833,152,431.86 in 2019[21]. - Basic earnings per share for 2020 was CNY 0.60, a 1.70% increase compared to CNY 0.59 in 2019[23]. - The weighted average return on equity decreased by 0.73 percentage points to 12.41% in 2020 from 13.14% in 2019[23]. - The net profit attributable to shareholders for Q4 2020 was CNY 38,230,723.09, with a total annual net profit of CNY 107,672,251.09[26]. - The company achieved a revenue of 704.23 million yuan in 2020, representing a year-on-year growth of 5.03%[51]. - Net profit attributable to shareholders of the parent company was 107.67 million yuan, up 2.49% year-on-year[55]. Cash Flow and Investments - Net cash flow from operating activities decreased by 31.91% year-on-year, primarily due to the use of notes receivable for payment and an increase in accounts payable[23]. - The investment activities generated a net cash flow of -68.08 million yuan, a significant improvement from the previous year's -180.10 million yuan[60]. - As of December 31, 2020, the company had a total of RMB 511 million in structured deposits, with a remaining balance of RMB 145 million[132]. - The company utilized its own funds to purchase bank structured deposits totaling RMB 511 million, all of which have matured and been fully recovered[132]. - The company reported a total of RMB 20 million in structured deposits from raised funds, which has also been fully recovered[132]. Operational Risks and Challenges - The company faces various operational risks, including policy changes, high customer concentration, and raw material price fluctuations[7]. - The company is at risk of losing tax incentives if it fails to requalify as a national high-tech enterprise, which could result in a 25% corporate income tax rate[109]. - The company faces risks from high customer concentration, as it has focused on a few major clients, which could impact business opportunities if demand decreases[107]. Research and Development - The company has developed 26 invention patents and 30 utility model patents, focusing on laser holographic anti-counterfeiting packaging materials[35]. - Research and development expenses rose by 10.87% to 71.08 million yuan, indicating a focus on innovation[59]. - The company plans to enhance its research and development capabilities by leveraging its design centers in Shenzhen and Shanghai to develop forward-looking and industry-leading technologies and products[104]. - The company is focusing on talent development by establishing a dual-channel promotion mechanism to nurture a talent pool that aligns with both corporate needs and individual growth[105]. Market Position and Strategy - The company operates a complete procurement, research and development, production, and sales system, focusing on customized production based on customer requirements[36]. - The company has established long-term partnerships with major tobacco brands, maintaining a leading market share in the packaging sector[47]. - The company aims to expand its market presence in sectors such as liquor packaging, cosmetics, daily necessities, cultural products, and electronics[101]. - The company emphasizes technological innovation and market expansion as key strategies for future growth[44]. Corporate Governance and Compliance - The company has maintained an independent governance structure, ensuring no interference from controlling shareholders in daily operations[191]. - The board of directors and supervisory board operate independently, adhering to legal regulations and ensuring compliance in their duties[192]. - The company has not faced any penalties from securities regulatory agencies in the past three years[184]. - The company follows a strict information disclosure policy to ensure timely and accurate communication with shareholders[192]. Shareholder Information - The company plans to distribute cash dividends of 2.5 yuan per 10 shares, totaling 44,629,200 yuan, based on the total share capital of 178,516,800 shares as of December 31, 2020[113]. - The company distributed a cash dividend of 2.5 RMB per 10 shares in 2020, totaling 44,629,200 RMB, which represents 41.45% of the net profit attributable to ordinary shareholders[114]. - The controlling shareholder has a plan to limit share reduction to 25% of the total shares held at the end of the previous year during the two years following the lock-up period[115]. - The company has established a commitment to avoid engaging in competitive businesses with its controlled entities[117]. Environmental and Safety Standards - The company strictly adhered to environmental protection laws and regulations, with no environmental incidents or pollution accidents reported during the reporting period[149]. - The company conducted regular environmental self-monitoring, with all pollutant emissions meeting national standards[147]. - The company has established an emergency response plan for environmental incidents to enhance its response capabilities and minimize potential damages[146]. Employee and Management Information - The company employed a total of 567 staff, with 256 in the parent company and 311 in major subsidiaries[185]. - The remuneration policy for senior management is based on a combination of basic salary and performance-based pay, with annual performance evaluations determining the latter[186]. - The company has established a training system tailored to different job categories, focusing on skill development and safety training[187].

[Important Notice](index=3&type=section&id=%E4%B8%80%E3%80%81%E9%87%8D%E8%A6%81%E6%8F%90%E7%A4%BA) [Statement on the Authenticity of the Report](index=3&type=section&id=1.1%20%E5%85%AC%E5%8F%B8%E8%91%A3%E4%BA%8B%E4%BC%9A%E3%80%81%E7%9B%91%E4%BA%8B%E4%BC%9A%E5%8F%8A%E8%91%A3%E4%BA%8B%E3%80%81%E7%9B%91%E4%BA%8B%E3%80%81%E9%AB%98%E7%BA%A7%E7%AE%A1%E7%90%86%E4%BA%BA%E5%91%98%E4%BF%9D%E8%AF%81%E5%AD%A3%E5%BA%A6%E6%8A%A5%E5%91%8A%E5%86%85%E5%AE%B9%E7%9A%84%E7%9C%9F%E5%AE%9E%E3%80%81%E5%87%86%E7%A1%AE%E3%80%81%E5%AE%8C%E6%95%B4) The Board of Directors, Supervisory Committee, and senior management affirm the authenticity, accuracy, and completeness of this unaudited quarterly report - The Board of Directors, Supervisory Committee, directors, supervisors, and senior management guarantee the authenticity, accuracy, and completeness of the quarterly report's content, and bear individual and joint legal responsibility[5](index=5&type=chunk) - All company directors attended the board meeting to review the quarterly report[5](index=5&type=chunk) - This third-quarter report has **not been audited**[5](index=5&type=chunk) [Company Profile](index=3&type=section&id=%E4%BA%8C%E3%80%81%E5%85%AC%E5%8F%B8%E5%9F%BA%E6%9C%AC%E6%83%85%E5%86%B5) [Key Financial Data](index=3&type=section&id=2.1%20%E4%B8%BB%E8%A6%81%E8%B4%A2%E5%8A%A1%E6%95%B0%E6%8D%AE) As of September 2020, total assets and net assets attributable to shareholders saw slight growth, while net operating cash flow and non-recurring net profit declined Overview of Key Financial Data for the First Three Quarters of 2020 | Indicator | As of 2020.9.30 | As of 2019.12.31 | Change (%) | | :--- | :--- | :--- | :--- | | Total Assets | 1,041,678,591.45 | 1,041,086,191.78 | 0.06 | | Net Assets Attributable to Shareholders | 864,062,454.68 | 833,152,431.86 | 3.71 | | Indicator | YTD (Jan-Sep 2020) | Prior YTD (Jan-Sep 2019) | Change (%) | | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 71,113,124.65 | 111,984,456.78 | -36.50 | | Operating Revenue | 462,480,183.91 | 456,962,590.10 | 1.21 | | Net Profit Attributable to Shareholders | 69,441,519.00 | 68,714,509.82 | 1.06 | | Net Profit Attributable to Shareholders (Excluding Non-recurring Items) | 58,320,204.52 | 61,866,183.04 | -5.73 | | Weighted Average Return on Equity (%) | 8.08 | 8.58 | Decreased by 0.50 percentage points | | Basic Earnings Per Share (Yuan/Share) | 0.39 | 0.38 | 2.63 | | Diluted Earnings Per Share (Yuan/Share) | 0.39 | 0.38 | 2.63 | Non-recurring Profit and Loss Items and Amounts for the First Three Quarters of 2020 | Item | Current Period (Jul-Sep) | Year-to-Date (Jan-Sep) | | :--- | :--- | :--- | | Gain/Loss on Disposal of Non-current Assets | -114,537.81 | -157,246.43 | | Government Grants Recognized in Current Profit/Loss | 3,680,704.75 | 7,171,383.24 | | Fair Value Change Gain/Loss & Investment Income from Financial Assets | 3,005,693.73 | 6,525,850.73 | | Other Non-operating Income and Expenses | -389,764.15 | -395,210.82 | | Income Tax Impact | -934,696.54 | -2,023,462.24 | | **Total** | **5,247,399.98** | **11,121,314.48** | [Shareholder Information](index=5&type=section&id=2.2%20%E6%88%AA%E6%AD%A2%E6%8A%A5%E5%91%8A%E6%9C%9F%E6%9C%AB%E7%9A%84%E8%82%A1%E4%B8%9C%E6%80%BB%E6%95%B0%E3%80%81%E5%89%8D%E5%8D%81%E5%90%8D%E8%82%A1%E4%B8%9C%E3%80%81%E5%89%8D%E5%8D%81%E5%90%8D%E6%B5%81%E9%80%9A%E8%82%A1%E4%B8%9C%EF%BC%88%E6%88%96%E6%97%A0%E9%99%90%E5%94%AE%E6%9D%A1%E4%BB%B6%E8%82%A1%E4%B8%9C%EF%BC%89%E6%8C%81%E8%82%A1%E6%83%85%E5%86%B5%E8%A1%A8) As of the reporting date, the company had 14,270 shareholders, with a high concentration of ownership held by the controlling shareholder and the chairman - The total number of shareholders is **14,270**[9](index=9&type=chunk) Top Ten Shareholders | Shareholder Name | Shares Held at Period End | Ownership (%) | Number of Restricted Shares | Pledged or Frozen Status (Shares) | | :--- | :--- | :--- | :--- | :--- | | Zhejiang Xingsheng Investment Management Co, Ltd | 56,456,585 | 31.63 | 56,456,585 | None (0) | | Sun Jiancheng | 22,358,974 | 12.52 | 22,358,974 | None (0) | | Qi Qifan | 4,773,384 | 2.67 | 4,773,384 | None (0) | | Feng Yiping | 4,161,511 | 2.33 | 4,161,511 | None (0) | | Yuan Jianfeng | 3,259,872 | 1.83 | 3,259,872 | None (0) | | Feng Yihong | 3,083,942 | 1.73 | 3,083,942 | None (0) | | Wang Fuqing | 2,897,664 | 1.62 | 2,897,664 | None (0) | | Chen Jintong | 2,897,664 | 1.62 | 2,897,664 | None (0) | | Jiang Jiangen | 2,897,664 | 1.62 | 2,897,664 | None (0) | | Xiong Jianhua | 2,600,136 | 1.46 | 2,600,136 | Pledged (855,540) | - Xingsheng Investment is the company's controlling shareholder, with Sun Jiancheng holding a **67.81%** stake, Yuan Jianfeng holding **11.62%**, and Feng Yiping holding **10.30%**[10](index=10&type=chunk) [Significant Matters](index=6&type=section&id=%E4%B8%89%E3%80%81%E9%87%8D%E8%A6%81%E4%BA%8B%E9%A1%B9) [Significant Changes in Financial Statement Items and Indicators](index=6&type=section&id=3.1%20%E5%85%AC%E5%8F%B8%E4%B8%BB%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%8A%A5%E8%A1%A8%E9%A1%B9%E7%9B%AE%E3%80%81%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87%E9%87%8D%E5%A4%A7%E5%8F%98%E5%8A%A8%E7%9A%84%E6%83%85%E5%86%B5%E5%8F%8A%E5%8E%9F%E5%9B%A0) The company experienced significant fluctuations in various financial statement items, including decreases in prepayments and construction in progress, and a decline in operating cash flow Changes in Major Balance Sheet Items and Reasons | Item | Current Period End (2020.9.30) | Prior Year End (2019.12.31) | Change (%) | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Prepayments | 514,003.59 | 847,984.42 | -39.39% | Expensing of prepayments from the beginning of the period | | Other Current Assets | 457,034.29 | 1,892,689.18 | -75.85% | Decrease in input tax credits to be deducted this period | | Construction in Progress | 19,290,301.92 | 36,991,282.51 | -47.85% | Transfer of plant construction in progress to fixed assets | | Other Payables | 13,387,633.60 | 26,612,787.54 | -49.69% | Payment of a portion of the outstanding equity acquisition款 from 2019 | | Share Capital | 178,516,800.00 | 127,512,000.00 | 40.00% | Capitalization of capital reserves to share capital | | Other Comprehensive Income | -184,631.43 | 93,264.75 | -297.96% | Difference in related party transaction amounts due to exchange rate fluctuations | Changes in Major Income Statement Items and Reasons | Item | Current Period (Jan-Sep 2020) | Prior Period (Jan-Sep 2019) | Change (%) | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Financial Expenses | -998,123.02 | -1,642,314.08 | -39.22% | Decrease in interest income from deposits | | Other Income | 7,171,383.24 | 2,087,944.96 | 243.47% | Receipt of fiscal subsidies and economic rewards for the 2018 innovation-driven development strategy | | Gain on Asset Disposal | -157,246.43 | -361,528.71 | -56.51% | Fewer disposals of fixed assets in the current period | | Non-operating Income | 94,422.95 | 1,765,295.54 | -94.65% | Decrease in government subsidies unrelated to daily operations | Changes in Major Cash Flow Statement Items and Reasons | Item | Current Period (Jan-Sep 2020) | Prior Period (Jan-Sep 2019) | Change (%) | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 71,113,124.65 | 111,984,456.78 | -36.50% | Decrease in collections due to outstanding accounts receivable from sales | | Net Cash Flow from Investing Activities | -71,990,900.04 | -155,086,251.79 | -53.58% | Decrease in cash paid for the acquisition of subsidiaries and other business units | [Progress of Significant Matters](index=7&type=section&id=3.2%20%E9%87%8D%E8%A6%81%E4%BA%8B%E9%A1%B9%E8%BF%9B%E5%B1%95%E6%83%85%E5%86%B5%E5%8F%8A%E5%85%B6%E5%BD%B1%E5%93%8D%E5%92%8C%E8%A7%A3%E5%86%B3%E6%96%B9%E6%A1%88%E7%9A%84%E5%88%86%E6%9E%90%E8%AF%B4%E6%98%8E) No significant matters to report during the period - There is no progress on significant matters or analysis of their impact and solutions to disclose[14](index=14&type=chunk) [Overdue Unfulfilled Commitments](index=7&type=section&id=3.3%20%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E8%B6%85%E6%9C%9F%E6%9C%AA%E5%B1%A5%E8%A1%8C%E5%AE%8C%E6%AF%95%E7%9A%84%E6%89%BF%E8%AF%BA%E4%BA%8B%E9%A1%B9) No overdue unfulfilled commitments during the period - There are no overdue unfulfilled commitments within the reporting period[14](index=14&type=chunk) [Warning on Future Net Profit Forecast](index=7&type=section&id=3.4%20%E9%A2%84%E6%B5%8B%E5%B9%B4%E5%88%9D%E8%87%B3%E4%B8%8B%E4%B8%80%E6%8A%A5%E5%91%8A%E6%9C%9F%E6%9C%9F%E6%9C%AB%E7%9A%84%E7%B4%AF%E8%AE%A1%E5%87%80%E5%88%A9%E6%B6%A6%E5%8F%AF%E8%83%BD%E4%B8%BA%E4%BA%8F%E6%8D%9F%E6%88%96%E8%80%85%E4%B8%8E%E4%B8%8A%E5%B9%B4%E5%90%8C%E6%9C%9F%E7%9B%B8%E6%AF%94%E5%8F%91%E7%94%9F%E9%87%8D%E5%A4%A7%E5%8F%98%E5%8A%A8%E7%9A%84%E8%AD%A6%E7%A4%BA%E5%8F%8A%E5%8E%9F%E5%9B%A0%E8%AF%B4%E6%98%8E) No warning was issued regarding potential losses or significant changes in cumulative net profit - No warning or explanation was provided regarding potential losses or significant changes in cumulative net profit from the beginning of the year to the end of the next reporting period[14](index=14&type=chunk) [Appendix](index=8&type=section&id=%E5%9B%9B%E3%80%81%E9%99%84%E5%BD%95) [Financial Statements](index=8&type=section&id=4.1%20%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8) This section presents the unaudited consolidated and parent company financial statements for the third quarter of 2020 [Consolidated Balance Sheet](index=8&type=section&id=%E5%90%88%E5%B9%B6%E8%B5%84%E4%BA%A7%E8%B4%9F%E5%80%BA%E8%A1%A8) As of September 30, 2020, the company's consolidated total assets were 1.04 billion yuan, total liabilities were 175 million yuan, and total equity was 866 million yuan Key Data from Consolidated Balance Sheet (2020.9.30 vs 2019.12.31) | Item | September 30, 2020 (Yuan) | December 31, 2019 (Yuan) | | :--- | :--- | :--- | | Total Assets | 1,041,678,591.45 | 1,041,086,191.78 | | Total Current Assets | 613,018,693.15 | 623,661,329.06 | | Total Non-current Assets | 428,659,898.30 | 417,424,862.72 | | Total Liabilities | 175,470,634.07 | 207,704,279.72 | | Total Current Liabilities | 166,461,015.78 | 198,086,849.89 | | Total Non-current Liabilities | 9,009,618.29 | 9,617,429.83 | | Total Equity | 866,207,957.38 | 833,381,912.06 | | Total Equity Attributable to Parent Company | 864,062,454.68 | 833,152,431.86 | [Parent Company Balance Sheet](index=10&type=section&id=%E6%AF%8D%E5%85%AC%E5%8F%B8%E8%B5%84%E4%BA%A7%E8%B4%9F%E5%80%BA%E8%A1%A8) As of September 30, 2020, the parent company's total assets were 857 million yuan, total liabilities were 97 million yuan, and total equity was 761 million yuan Key Data from Parent Company Balance Sheet (2020.9.30 vs 2019.12.31) | Item | September 30, 2020 (Yuan) | December 31, 2019 (Yuan) | | :--- | :--- | :--- | | Total Assets | 857,211,967.51 | 838,854,325.90 | | Total Current Assets | 401,033,737.85 | 391,043,496.19 | | Total Non-current Assets | 456,178,229.66 | 447,810,829.71 | | Total Liabilities | 96,682,281.12 | 155,652,312.91 | | Total Current Liabilities | 89,285,146.63 | 147,591,657.34 | | Total Non-current Liabilities | 7,397,134.49 | 8,060,655.57 | | Total Equity | 760,529,686.39 | 683,202,012.99 | [Consolidated Income Statement](index=12&type=section&id=%E5%90%88%E5%B9%B6%E5%88%A9%E6%B6%A6%E8%A1%A8) For the first three quarters of 2020, consolidated revenue was 462 million yuan, up 1.21% YoY, while net profit attributable to the parent company was 69.44 million yuan, up 1.06% YoY Key Data from Consolidated Income Statement (Q3 & Jan-Sep 2020 vs Prior Year) | Item | 2020 Q3 (Jul-Sep) | 2019 Q3 (Jul-Sep) | 2020 Jan-Sep | 2019 Jan-Sep | | :--- | :--- | :--- | :--- | :--- | | Total Operating Revenue | 156,972,528.54 | 160,284,696.82 | 462,480,183.91 | 456,962,590.10 | | Total Operating Costs | 139,101,382.08 | 135,970,534.54 | 399,269,486.02 | 391,344,790.96 | | Operating Profit | 25,234,777.82 | 27,109,958.38 | 78,769,216.24 | 74,282,880.82 | | Total Profit | 24,845,013.67 | 27,420,228.43 | 78,374,005.42 | 75,646,440.65 | | Net Profit | 23,418,160.87 | 24,927,980.66 | 70,577,513.99 | 68,875,430.77 | | Net Profit Attributable to Parent Company Shareholders | 23,582,256.88 | 25,183,060.45 | 69,441,519.00 | 68,714,509.82 | | Basic Earnings Per Share (Yuan/Share) | - | - | 0.39 | 0.38 | | Diluted Earnings Per Share (Yuan/Share) | - | - | 0.39 | 0.38 | [Parent Company Income Statement](index=15&type=section&id=%E6%AF%8D%E5%85%AC%E5%8F%B8%E5%88%A9%E6%B6%A6%E8%A1%A8) For the first three quarters of 2020, the parent company's revenue was 297 million yuan, down 3.73% YoY, while net profit grew 222.08% to 116 million yuan, driven by investment income Key Data from Parent Company Income Statement (Q3 & Jan-Sep 2020 vs Prior Year) | Item | 2020 Q3 (Jul-Sep) | 2019 Q3 (Jul-Sep) | 2020 Jan-Sep | 2019 Jan-Sep | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 109,377,880.66 | 102,977,668.80 | 297,234,614.18 | 308,768,014.54 | | Operating Profit | 91,215,927.86 | 12,702,300.16 | 119,271,459.83 | 38,438,279.68 | | Total Profit | 91,043,548.93 | 12,822,300.21 | 119,075,082.09 | 39,599,983.66 | | Net Profit | 90,394,859.11 | 11,697,840.87 | 115,581,273.40 | 35,903,491.12 | | Investment Income | 80,868,306.84 | 2,712,367.13 | 83,597,550.69 | 5,151,873.98 | [Consolidated Cash Flow Statement](index=18&type=section&id=%E5%90%88%E5%B9%B6%E7%8E%B0%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) For the first three quarters of 2020, consolidated net operating cash flow was 71.11 million yuan, a 36.50% YoY decrease Key Data from Consolidated Cash Flow Statement (Jan-Sep 2020 vs Jan-Sep 2019) | Item | Jan-Sep 2020 (Yuan) | Jan-Sep 2019 (Yuan) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 71,113,124.65 | 111,984,456.78 | | Net Cash Flow from Investing Activities | -71,990,900.04 | -155,086,251.79 | | Net Cash Flow from Financing Activities | -37,828,665.00 | -41,583,624.42 | | Net Increase in Cash and Cash Equivalents | -39,165,556.44 | -84,712,522.47 | | Cash and Cash Equivalents at End of Period | 44,690,380.83 | 65,402,824.06 | [Parent Company Cash Flow Statement](index=19&type=section&id=%E6%AF%8D%E5%85%AC%E5%8F%B8%E7%8E%B0%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) For the first three quarters of 2020, the parent company's net operating cash flow was 69.47 million yuan, a 14.28% YoY decrease Key Data from Parent Company Cash Flow Statement (Jan-Sep 2020 vs Jan-Sep 2019) | Item | Jan-Sep 2020 (Yuan) | Jan-Sep 2019 (Yuan) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 69,473,402.06 | 81,045,187.97 | | Net Cash Flow from Investing Activities | -57,560,040.02 | -128,193,795.88 | | Net Cash Flow from Financing Activities | -37,878,665.00 | -41,583,624.42 | | Net Increase in Cash and Cash Equivalents | -25,965,302.96 | -88,732,232.33 | | Cash and Cash Equivalents at End of Period | 25,782,039.86 | 52,168,936.39 | [Implementation of New Accounting Standards](index=21&type=section&id=4.2%202020%20%E5%B9%B4%E8%B5%B7%E9%A6%96%E6%AC%A1%E6%89%A7%E8%A1%8C%E6%96%B0%E6%94%B6%E5%85%A5%E5%87%86%E5%88%99%E3%80%81%E6%96%B0%E7%A7%9F%E8%B5%81%E5%87%86%E5%88%99%E8%B0%83%E6%95%B4%E9%A6%96%E6%AC%A1%E6%89%A7%E8%A1%8C%E5%BD%93%E5%B9%B4%E5%B9%B4%E5%88%9D%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8%E7%9B%B8%E5%85%B3%E6%83%85%E5%86%B5) The company did not adopt new revenue or lease standards in 2020, thus no adjustments were made - The adjustment of beginning-of-year financial statements for the first-time adoption of new revenue and lease standards from 2020 is not applicable[40](index=40&type=chunk) [Retrospective Adjustment for New Accounting Standards](index=21&type=section&id=4.3%202020%20%E5%B9%B4%E8%B5%B7%E9%A6%96%E6%AC%A1%E6%89%A7%E8%A1%8C%E6%96%B0%E6%94%B6%E5%85%A5%E5%87%86%E5%88%99%E3%80%81%E6%96%B0%E7%A7%9F%E8%B5%81%E5%87%86%E5%88%99%E8%BF%BD%E6%BA%AF%E8%B0%83%E6%95%B4%E5%89%8D%E6%9C%9F%E6%AF%94%E8%BE%83%E6%95%B0%E6%8D%AE%E7%9A%84%E8%AF%B4%E6%98%8E) No retrospective adjustments were necessary as new accounting standards were not adopted in 2020 - The retrospective adjustment of prior period comparative data for the first-time adoption of new revenue and lease standards from 2020 is not applicable[40](index=40&type=chunk) [Audit Report](index=21&type=section&id=4.4%20%E5%AE%A1%E8%AE%A1%E6%8A%A5%E5%91%8A) This quarterly report is unaudited and therefore does not include an audit report - This quarterly report is **unaudited** and the audit report is not applicable[5](index=5&type=chunk)[40](index=40&type=chunk)

Financial Performance - The company's operating revenue for the first half of 2020 was ¥305,507,655.37, representing a 2.98% increase compared to ¥296,677,893.28 in the same period last year[20]. - The net profit attributable to shareholders for the first half of 2020 was ¥45,859,262.12, up 5.35% from ¥43,531,449.37 in the previous year[20]. - Basic earnings per share for the first half of 2020 were ¥0.26, an increase of 8.33% compared to ¥0.24 in the same period last year[21]. - The company achieved operating revenue of CNY 305.51 million, a year-on-year increase of 2.98%[40]. - Net profit reached CNY 45.86 million, reflecting a growth of 5.35% compared to the previous year[35]. - The company reported a total profit for the first half of 2020 of ¥28.03 million, an increase of 4.7% from ¥26.78 million in the first half of 2019[117]. Cash Flow and Assets - The net cash flow from operating activities decreased by 33.31% to ¥41,869,396.75, down from ¥62,779,060.65 in the same period last year[20]. - Cash flow from operating activities was ¥41.87 million, down 33.3% from ¥62.78 million in the first half of 2019[120]. - The total assets at the end of the reporting period were ¥999,406,664.62, a decrease of 4.00% from ¥1,041,086,191.78 at the end of the previous year[20]. - Cash and cash equivalents at the end of the reporting period were CNY 13,192,350.00, restricted due to acceptance bill guarantees[43]. - The total cash and cash equivalents at the end of the period stood at ¥50,716,209.65, compared to ¥46,793,251.98 at the end of the previous year, indicating a 6.5% increase[124]. Research and Development - Research and development expenses amounted to CNY 28.95 million, an increase of 1.84% from the previous year[40]. - The company is investing 30 million in R&D for new technologies aimed at enhancing product efficiency[62]. - Research and development expenses for the first half of 2020 were CNY 28,949,963.87, compared to CNY 28,426,184.83 in the same period last year, showing an increase of 1.8%[113]. Operational Risks - The company has identified several operational risks, including changes in national industry policies and high customer concentration risks[6]. - The concentration of customers is high, with a focus on a few major clients, which poses a risk if their product demand declines or if the company fails to win bids[54]. - Major raw material prices account for over 80% of the main business costs, and fluctuations in these prices can significantly impact profit margins and overall profitability[54]. Environmental Management - The company reported that all emissions from its waste gas treatment facilities met the required standards, with no exceedances noted in the monitoring results[74]. - 京华科技 has established a monitoring system for hazardous waste storage, ensuring compliance with pollution control standards[76]. - The company has implemented an emergency response plan for environmental incidents, enhancing its ability to manage such events[79]. - 京华科技 conducts regular environmental self-monitoring and has shown that emissions meet national standards[80]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period is 14,844[91]. - The largest shareholder, Zhejiang Xingsheng Investment, is a domestic non-state-owned legal entity[93]. - The company has a diverse shareholder base, including both natural persons and corporate entities[94]. - The total number of restricted shares at the beginning of the period was 78,797,656, with 31,519,062 shares released during the reporting period[90]. Strategic Direction - The company aims to leverage its technological advancements to enhance product performance and meet the evolving market demands[30]. - Future development in the packaging industry will emphasize the research and application of surface functions of packaging materials, such as anti-counterfeiting and environmental sustainability[30]. - The company is considering strategic acquisitions to bolster its technology portfolio, with a budget of 100 million allocated for potential deals[62]. Financial Reporting and Compliance - The company adheres to the accounting standards set by the Ministry of Finance and has confirmed that its financial statements accurately reflect its financial position and operating results[147]. - The financial statements are prepared in RMB, with a focus on transparency and compliance with auditing standards[106]. - The company operates under a continuous business assumption with no significant doubts regarding its ability to continue operations for the next 12 months[145].

证券代码：603607 证券简称：京华激光 公告编号：2020-015 浙江京华激光科技股份有限公司 关于参加浙江辖区上市公司 投资者网上集体接待日活动的公告 本公司董事会及全体董事保证本公告内容不存在任何虚假记载、误导性陈 述或者重大遗漏，并对其内容的真实性、准确性和完整性承担个别及连带责任。 重要内容提示： 1、会议内容：浙江辖区上市公司投资者网上集体接待日活动 2、召开时间：2020 年 5 月 15 日下午 15:00-17:00 3、召开地点：全景网（http://rs.p5w.net） 4、召开方式：网络平台在线交流 5、投资者可以在 2020 年 5 月 14 日下午 6:00 前将需要了解的情况和关注 问题预先发送至公司投资者关系信箱(Web@sx-jhjg.com)，公司将在本次活动上 就投资者普遍关注的问题进行回答。 一、说明会类型 为进一步加强与投资者特别是中小投资者的沟通交流，浙江京华激光科技股 份有限公司（以下简称"公司"）将于 2020 年 5 月 15 日参加由浙江证监局指导、 浙江上市公司协会与深圳市全景网络有限公司共同举办的"凝心聚力 共克时艰" 浙江辖区上市公司投资者网上集 ...

Financial Performance - The company's operating revenue for 2019 was CNY 670,537,099.64, representing a 20.81% increase compared to CNY 555,027,266.85 in 2018[19]. - The net profit attributable to shareholders for 2019 was CNY 105,056,877.11, an increase of 9.70% from CNY 95,770,813.19 in 2018[19]. - The net cash flow from operating activities reached CNY 153,347,903.74, a significant increase of 92.31% compared to CNY 79,738,893.47 in 2018[19]. - Total assets at the end of 2019 amounted to CNY 1,041,086,191.78, reflecting a 15.54% increase from CNY 901,087,831.88 at the end of 2018[19]. - The company's net assets attributable to shareholders increased to CNY 833,152,431.86, an 8.73% rise from CNY 766,255,890.00 in 2018[19]. - Basic earnings per share for 2019 increased by 9.33% to CNY 0.82 compared to CNY 0.75 in 2018[21]. - The net profit after deducting non-recurring gains and losses for 2019 was CNY 0.75 per share, a 17.19% increase from CNY 0.64 in 2018[21]. - The net profit attributable to shareholders for Q4 2019 was CNY 36,342,367.29, showing a significant increase compared to CNY 25,934,104.76 in Q1 2019[24]. - The revenue for Q4 2019 reached CNY 213,574,509.54, marking a substantial increase from CNY 160,002,732.07 in Q1 2019[24]. Dividend Distribution - The company plans to distribute a cash dividend of CNY 3.0 per 10 shares, totaling CNY 38,253,600.00, and to issue 4 additional shares for every 10 shares held[5]. - The company proposed a cash dividend of 3.0 RMB per 10 shares, totaling 38,253,600 RMB for the year 2019, which represents 36.41% of the net profit attributable to shareholders[93]. - The cash dividend policy aims to balance reasonable returns to shareholders with the company's sustainable development needs[92]. - The company has consistently maintained a cash dividend distribution, with the previous year's distribution also amounting to 38,253,600 RMB, representing 39.94% of the net profit[93]. - The company has committed to protecting the rights of minority shareholders in its dividend distribution strategy[92]. Operational Risks and Challenges - The company faces various operational risks, including changes in national industry policies and increased market competition, which may impact future performance[7]. - The company is exposed to raw material price fluctuations, with raw materials accounting for over 80% of the main business costs, which could affect profit margins[87]. - The company is at risk from intensified market competition, especially if barriers to entry in the tobacco packaging industry are lowered[87]. - The company must navigate potential tax risks if its subsidiaries fail to maintain their high-tech enterprise status, which could lead to a 25% corporate tax rate[88]. - The company is also facing uncertainties due to the impact of the COVID-19 pandemic, which has affected global trade and investment[88]. Research and Development - The company holds 26 invention patents and 27 utility model patents, focusing on the development of laser holographic anti-counterfeiting packaging materials[30]. - The company has developed a robust research and development system, integrating industry, academia, and research to enhance its technological capabilities and product optimization[37]. - The company’s research and development expenses increased by 59.00% to 64,105,030.41 yuan, indicating a strong focus on innovation[45]. - The company aims to enhance its competitive edge through R&D and innovation, focusing on developing new products that meet market demands[77]. - The company plans to increase its investment in new product development to maintain its competitive edge in the laser holographic anti-counterfeiting industry[84]. Market Position and Strategy - The company is focused on expanding its market presence and developing new technologies in laser holographic products[19]. - The company has established long-term stable partnerships with well-known printing companies, with significant market share in the tobacco packaging sector, particularly in Zhejiang and Hubei provinces[36]. - The packaging industry in China is expected to grow significantly, driven by increasing consumer demand for high-quality, environmentally friendly, and anti-counterfeiting packaging solutions[34]. - The market for high-end laser holographic and platinum embossed packaging materials is projected to expand, as traditional printing packaging is gradually being replaced[35]. - The company aims to establish a smart packaging materials industry base that integrates anti-counterfeiting, decoration, environmental protection, and traceability[79]. Environmental Compliance - The company has maintained a strong commitment to environmental and safety standards, with no incidents reported during the year[41]. - The company’s hazardous waste is stored in a compliant facility with monitoring systems in place to ensure safety and compliance[132]. - The company has implemented measures to control noise pollution, ensuring compliance with relevant standards[128]. - Regular environmental monitoring is conducted, with results showing that all pollutant emissions are within national standards[136]. - The company has established a comprehensive emergency response plan for environmental incidents, enhancing its ability to manage and mitigate potential environmental risks[134]. Corporate Governance - The company has established a performance evaluation system for senior management, with the remuneration and assessment committee responsible for formulating compensation policies and evaluating performance based on annual operational goals[176]. - The company actively manages investor relations, ensuring timely and accurate information disclosure to protect shareholder rights[172]. - The board of directors has held 7 meetings during the year, with all directors attending in person, ensuring compliance with legal and regulatory requirements[174]. - The company has maintained a transparent governance structure, with independent directors actively participating in board meetings and decision-making processes[172]. - The company strictly adheres to relevant laws and regulations, ensuring the independence of its operations and governance structure, with no incidents of major shareholder misappropriating company funds or assets[171].

京华激光 2020 年第一季度报告 公司代码：603607 公司简称：京华激光 浙江京华激光科技股份有限公司 2020 年第一季度报告 1 / 19 | 一、 | 重要提示 3 | | --- | --- | | 二、 | 公司基本情况 3 | | 三、 | 重要事项 6 | | 四、 | 附录 8 | 京华激光 2020 年第一季度报告 一、 重要提示 二、 公司基本情况 2.1 主要财务数据 | | 本报告期末 | 上年度末 | 本报告期末比上年度末 | | | --- | --- | --- | --- | --- | | | | | 增减(%) | | | 总资产 | 1,046,921,960.41 | 1,041,086,191.78 | | 0.56 | | 归属于上市公司股 | 857,532,085.88 | 833,152,431.86 | | 2.93 | | 东的净资产 | | | | | | | 年初至报告期末 | 上年初至上年报告期末 | 比上年同期增减(%) | | | 经营活动产生的现 | 23,723,539.95 | 20,602,104.30 | | 15.15 | | ...

Financial Performance - Operating revenue for the first nine months reached CNY 456,962,590.10, a growth of 13.37% year-on-year[5] - Net profit attributable to shareholders increased by 5.51% to CNY 68,714,509.82 for the first nine months[5] - Basic earnings per share rose by 5.88% to CNY 0.54[5] - The company reported a net profit margin of approximately 16.5% for the first three quarters of 2019, compared to 15.5% in the same period of 2018[25] - The net profit for Q3 2019 was CNY 24,927,980.66, representing an increase of 8.8% from CNY 22,925,889.12 in Q3 2018[27] - The total profit for Q3 2019 was CNY 27,420,228.43, up from CNY 25,791,653.15 in Q3 2018, marking a growth of 6.3%[30] - The net profit for the first three quarters of 2019 was CNY 35,903,491.12, compared to CNY 39,655,747.04 in the same period of 2018, reflecting a decrease of approximately 6.4%[33] - Operating profit for the first three quarters of 2019 was CNY 38,438,279.68, down from CNY 43,950,883.67 in 2018, indicating a decline of about 12.0%[33] Cash Flow - Cash flow from operating activities surged by 307.44% to CNY 111,984,456.78 compared to the same period last year[5] - Cash flow from operating activities for the first three quarters of 2019 was CNY 111,984,456.78, significantly up from CNY 27,484,565.76 in 2018, representing an increase of approximately 307.5%[36] - The company reported cash inflows from operating activities totaling CNY 510,353,830.10, up from CNY 451,501,911.16 in the previous year, marking an increase of approximately 13.0%[36] - The cash outflow from investing activities was CNY 573,294,125.77, compared to CNY 344,282,121.37 in 2018, indicating an increase of about 66.5%[36] - The net cash flow from financing activities was -CNY 41,583,624.42, worsening from -CNY 33,483,871.61 in the previous year[38] Assets and Liabilities - Total assets increased by 10.42% to CNY 994,995,889.26 compared to the end of the previous year[5] - The total assets as of September 30, 2019, were ¥865,486,416.28, compared to ¥809,637,124.77 at the end of 2018, indicating a growth of 6.9%[23] - The total liabilities increased to ¥198,004,807.39 from ¥139,805,407.00, marking a rise of 41.5%[23] - The total liabilities amounted to ¥134,831,941.88, remaining stable compared to the previous year[44] - The company's total equity was reported at ¥766,255,890.00, consistent with the previous year's figures[45] Shareholder Information - The total number of shareholders reached 11,158 by the end of the reporting period[9] - The largest shareholder, Zhejiang Xing Sheng Investment Management Co., Ltd., holds 31.63% of the shares[9] Research and Development - Research and development expenses rose by 42.33% to ¥46,360,823.29 from ¥32,573,222.09, reflecting changes in the scope of consolidation[12] - R&D expenses for the first three quarters of 2019 amounted to ¥46,360,823.29, a significant rise of 42.3% from ¥32,573,222.09 in the same period of 2018[25] - Research and development expenses for Q3 2019 were CNY 8,174,367.85, an increase of 5% compared to CNY 7,786,332.02 in Q3 2018[30] Other Financial Metrics - The weighted average return on equity decreased by 0.42 percentage points to 8.58%[5] - Other income increased significantly by 4556.11% to ¥2,087,944.96 from ¥44,843.13, primarily due to increased returns from matured financial products[12] - The company's gross profit margin for Q3 2019 was approximately 22.9%, down from 23.8% in Q3 2018[30] - The income tax expense for Q3 2019 was CNY 2,492,247.77, a decrease from CNY 2,865,764.03 in Q3 2018, down by 13%[30] - The company reported investment income of CNY 2,712,367.13 in Q3 2019, significantly higher than CNY 743,863.01 in Q3 2018, marking a growth of 264%[30] Changes in Receivables and Payables - Accounts receivable increased by 75.18% to ¥40,343,779.49 from ¥23,029,596.86, primarily due to changes in the scope of consolidation[11] - Other receivables rose by 84.88% to ¥3,150,004.15 from ¥1,703,817.12, also due to changes in the scope of consolidation[11] - Other payables surged by 534.02% to ¥31,158,683.63 from ¥4,914,455.12, primarily due to unpaid equity acquisition payments not yet due[11]

Financial Performance - The company's operating revenue for the first half of 2019 was CNY 296,677,893.28, representing a 14.01% increase compared to CNY 260,223,167.90 in the same period last year[18]. - The net profit attributable to shareholders of the listed company was CNY 43,531,449.37, a 3.15% increase from CNY 42,201,148.48 year-on-year[18]. - The net cash flow from operating activities surged by 190.62% to CNY 62,779,060.65, compared to CNY 21,602,021.65 in the previous year[18]. - Basic earnings per share for the reporting period increased by 3.03% to CNY 0.34 compared to the same period last year[19]. - The net profit after deducting non-recurring gains and losses decreased by 6.27% to CNY 38,959,865.56 from CNY 41,564,839.14 in the same period last year[18]. - The company achieved a revenue of CNY 296.68 million in the first half of 2019, representing a year-on-year growth of 14.01%[34]. - Net profit for the period was CNY 43.53 million, reflecting a growth of 3.15% year-on-year[34]. - The company reported a revenue increase of 15% year-over-year, reaching 500 million RMB in the latest quarter[59]. Assets and Liabilities - The total assets at the end of the reporting period were CNY 949,197,616.85, reflecting a 5.34% increase from CNY 901,087,831.88 at the end of the previous year[18]. - The net assets attributable to shareholders of the listed company increased by 0.69% to CNY 771,542,389.73 from CNY 766,255,890.00 at the end of the previous year[18]. - Total liabilities were CNY 177,009,718.86, up from CNY 134,831,941.88, representing an increase of about 31.1%[90]. - The company's equity attributable to shareholders increased to CNY 771,542,389.73 from CNY 766,255,890.00, a growth of approximately 0.4%[91]. - Cash and cash equivalents decreased by 55.07% to ¥70,114,190.25, accounting for 7.39% of total assets[41]. - Accounts receivable rose by 73.65% to ¥39,990,034.29, making up 4.21% of total assets[41]. Research and Development - The company holds 19 invention patents and 11 utility model patents, focusing on the research and development of laser holographic anti-counterfeiting packaging materials[25]. - Research and development expenses increased by 38.70% to CNY 28.43 million, indicating a focus on innovation[39]. - The company plans to pursue strategic acquisitions to enhance its product portfolio, with a budget of 200 million RMB allocated for this purpose[59]. Operational Risks - The company has identified several operational risks, including changes in national industry policies and high customer concentration risk[5]. - The company faces risks from national industry policy changes, particularly due to the implementation of stricter tobacco control measures, which may reduce cigarette consumption and impact the business negatively[51]. - Increased market competition risk is highlighted, as the tobacco industry may lower entry barriers, allowing new entrants that could intensify competition[53]. Corporate Governance - The report was not audited, and the management has confirmed the accuracy and completeness of the financial report[6]. - There were no non-operating fund occupations by controlling shareholders or related parties reported[5]. - The company has committed to reducing and regulating related party transactions, ensuring fairness and compliance with market rules[62]. - The total number of ordinary shareholders at the end of the reporting period was 14,332[74]. Future Outlook - The company provided a future outlook with a revenue guidance of 600 million RMB for the next quarter, representing a 20% increase compared to the current quarter[60]. - New product launches are expected to contribute an additional 50 million RMB in revenue over the next six months[59]. - The company is expanding its market presence in Southeast Asia, targeting a 10% market share by the end of the fiscal year[61]. Environmental and Social Responsibility - The company invested CNY 320,000 in two poverty alleviation projects, including CNY 200,000 for building a small enterprise incubation park and CNY 120,000 for a cooperative project with local villages[68]. - The two poverty alleviation projects are progressing as planned and are expected to generate stable rental income for the partnered villages by the end of 2020[68]. - The company and its subsidiaries are not classified as key pollutant discharge units and have maintained compliance with environmental protection regulations[70]. Financial Reporting and Compliance - The company's financial statements are prepared in accordance with the Chinese Accounting Standards and reflect a true and complete view of its financial status[131]. - The company has not experienced any significant changes in accounting policies or estimates compared to the previous accounting period[71]. - There were no major lawsuits or arbitration matters during the reporting period[64].

京华激光 2019 年第一季度报告 公司代码：603607 公司简称：京华激光 | 一、 | 重要提示 3 | | --- | --- | | 二、 | 公司基本情况 3 | | 三、 | 重要事项 6 | | 四、 | 附录 8 | 京华激光 2019 年第一季度报告 一、 重要提示 二、 公司基本情况 2.1 主要财务数据 非经常性损益项目和金额 √适用 □不适用 3 / 20 单位：元 币种：人民币 本报告期末 上年度末 本报告期末比上年 度末增减(%) 总资产 1,028,459,385.85 901,087,831.88 14.14 归属于上市公司股东的 净资产 792,189,994.76 766,255,890.00 3.38 年初至报告期末 上年初至上年报 告期末 比上年同期增减 (%) 经营活动产生的现金流 量净额 20,602,104.30 11,277,424.89 82.68 年初至报告期末 上年初至上年报 告期末 比上年同期增减 （%） 营业收入 160,002,732.07 154,649,120.42 3.46 归属于上市公司股东的 净利润 25,934,104.76 24,52 ...

Financial Performance - The company's operating revenue for 2018 was CNY 555,027,266.85, representing a 3.51% increase compared to CNY 536,207,730.69 in 2017[21]. - The net profit attributable to shareholders for 2018 was CNY 95,770,813.19, which is a 15.90% increase from CNY 82,633,410.96 in 2017[21]. - The net profit after deducting non-recurring gains and losses was CNY 81,635,055.61, reflecting a 4.31% increase from CNY 78,261,945.15 in 2017[21]. - The basic earnings per share for 2018 was CNY 0.75, a decrease of 8.54% compared to CNY 0.82 in 2017[22]. - The net profit attributable to shareholders for Q4 2018 was CNY 30,643,775.59, while the total revenue for the same quarter was CNY 151,939,898.99[26]. - The weighted average return on equity for 2018 was 13.06%, down 8.16 percentage points from 21.22% in 2017[22]. - The company achieved operating revenue of 555.03 million yuan, a year-on-year increase of 3.51%[40]. - Net profit reached 95.77 million yuan, reflecting a year-on-year growth of 15.9%[40]. - The company reported a significant decrease in net cash flow from operating activities, down 37.68% to CNY 79.74 million[45]. Assets and Liabilities - The total assets at the end of 2018 were CNY 901,087,831.88, a 5.98% increase from CNY 850,273,242.01 at the end of 2017[21]. - The net assets attributable to shareholders increased by 8.39% to CNY 766,255,890.00 from CNY 706,917,076.81 at the end of 2017[21]. - The total liabilities decreased from CNY 143,356,165.20 to CNY 134,831,941.88, resulting in a reduction of the debt-to-asset ratio from 16.86% to 14.96%[156]. Cash Flow - The net cash flow from operating activities decreased by 37.68% to CNY 79,738,893.47 from CNY 127,954,312.98 in 2017[21]. - The company’s investment activities generated a net cash outflow of CNY 15.99 million, a significant improvement of 95.63% compared to the previous year[45]. Dividends and Shareholder Returns - The company plans to distribute a cash dividend of CNY 3.0 per 10 shares, totaling CNY 38,253,600.00, subject to shareholder approval[5]. - In 2018, the company proposed a cash dividend of 3.0 RMB per 10 shares, totaling 38,253,600 RMB, which represents 39.94% of the net profit attributable to shareholders[93][95]. - The cash dividend policy aims to balance reasonable returns to investors with sustainable company development, ensuring the protection of minority shareholders' rights[93]. Research and Development - The company holds 19 invention patents and 11 utility model patents, focusing on the development of laser holographic anti-counterfeiting packaging materials[32]. - The company emphasizes the importance of technological innovation and has a robust R&D team with extensive industry experience[38]. - The company’s R&D expenses were CNY 40.32 million, showing a slight decrease of 0.52% compared to the previous year[45]. - The company has implemented a new accounting policy that separates R&D expenses from management expenses, resulting in an increase of R&D expenses by RMB 40,526,020.70 for the 2017 financial year[110]. Market and Industry Trends - The packaging industry in China is expected to grow significantly, driven by increasing demand for anti-counterfeiting and environmentally friendly packaging solutions[36]. - The domestic high-end laser holographic anti-counterfeiting packaging market is projected to grow significantly due to increasing consumer demands for environmentally friendly and aesthetically pleasing packaging[81]. - The market for cigarette packaging is expected to remain stable, with an increasing demand for mid-to-high-end cigarette products[76]. Acquisitions and Investments - The company completed the acquisition of 100% equity in Zhuhai Ruiming Technology Co., Ltd., enhancing its position in the micro-structured optical industry[41]. - The company acquired 54.46% equity in Ruimin Packaging for RMB 72.4606 million on December 21, 2018[68]. - The company purchased 100% equity in Oke Chuangying for RMB 71.460082 million and 2% equity in Ruiming Technology for RMB 2.92 million on December 21, 2018[68]. - The company acquired 100% equity in Hong Kong Finel for RMB 15 million on December 21, 2018[68]. - The company purchased 58% equity in American Finel for USD 2 million on December 21, 2018[68]. Operational Risks and Challenges - The company faces various operational risks, including industry policy changes and market competition, which are detailed in the report[7]. - The company recognizes the risk of high customer concentration, which could impact business opportunities if major clients' demand declines[88]. - The company faces risks from intensified market competition, particularly if the tobacco industry lowers entry barriers and allows more new entrants, which could disrupt established supplier relationships[89]. Corporate Governance and Compliance - The company has no major litigation or arbitration matters during the reporting period, indicating a stable legal standing[115]. - The company has no significant related party transactions during the reporting period, reflecting a focus on transparency and compliance[117]. - The company has complied with all relevant laws and regulations regarding corporate governance, with no significant discrepancies noted[195]. - The board of directors and supervisory board operate independently, with no interference from the controlling shareholder in daily operations[193]. Employee and Management - The company employed a total of 403 staff, including 290 production personnel, 14 sales personnel, 41 technical personnel, 11 financial personnel, 22 administrative personnel, and 25 management and others[186]. - The company has established a training system tailored to different job categories, focusing on skill development and safety training[189]. - The total remuneration for all directors, supervisors, and senior management at the end of the reporting period amounted to 3.7964 million yuan[183]. Social Responsibility - The company invested RMB 32 million in poverty alleviation projects, including RMB 20 million for a business incubation park and RMB 12 million for a cooperative project with a village[136][137]. - The company has established partnerships with two impoverished villages to support their economic development[134].