Financial Performance - The company's operating revenue for the first half of 2018 was ¥89,013,634.76, a decrease of 15.92% compared to ¥105,865,323.26 in the same period last year[17]. - The net profit attributable to shareholders was ¥13,142,609.82, down 27.96% from ¥18,242,568.20 year-on-year[17]. - The net profit after deducting non-recurring gains and losses was ¥11,094,564.82, a decline of 26.51% compared to ¥15,097,106.56 in the previous year[17]. - The basic earnings per share were ¥0.08, down 27.27% from ¥0.11 in the same period last year[17]. - The overall comprehensive income for the first half of 2018 was CNY 13,142,609.82, compared to CNY 18,242,568.20 in the previous year[137]. - The company reported a net profit for the first half of 2018 of CNY 13,142,609.82, down 28.56% from CNY 18,242,568.20 in the previous year[137]. - Operating profit for the first half of 2018 was CNY 16,200,464.31, down 33.83% from CNY 24,460,055.61 in the same period of 2017[136]. Cash Flow - The net cash flow from operating activities increased significantly to ¥29,429,199.47, up 567.07% from ¥4,411,691.63 in the same period last year[17]. - Cash received from sales of goods and services was CNY 130,151,129.70, an increase from CNY 117,389,488.68 in the previous period[142]. - The total cash inflow from operating activities amounted to CNY 131,552,202.50, compared to CNY 121,719,790.85 in the previous year, indicating a year-over-year increase of about 24%[143]. - The cash outflow from operating activities decreased to CNY 102,123,003.03 from CNY 117,308,099.22, reflecting a reduction of approximately 13%[143]. - The net cash flow from investing activities was -CNY 9,927,267.39, an improvement from -CNY 108,125,573.14 in the prior year, showing a reduction in cash outflow by about 91%[144]. - The net cash flow from financing activities was -CNY 39,950,341.20, compared to -CNY 45,003,043.52 in the previous year, indicating a slight improvement[144]. Assets and Liabilities - Total assets at the end of the reporting period were ¥498,756,618.05, a decrease of 5.20% from ¥526,117,369.28 at the end of the previous year[17]. - The net assets attributable to shareholders decreased by 6.28% to ¥400,274,840.80 from ¥427,090,244.13 at the end of the previous year[17]. - Total current assets decreased from CNY 256,499,020.36 to CNY 225,419,866.61, a decline of approximately 12.1%[127]. - Total liabilities decreased slightly from CNY 99,027,125.15 to CNY 98,481,777.25, a decrease of about 0.6%[128]. - Owner's equity decreased from CNY 427,090,244.13 to CNY 400,274,840.80, a decrease of about 6.3%[129]. Investments and R&D - Research and development expenses rose by 76.78% to CNY 4.75 million, reflecting investment in the R&D center[34]. - The company participated in the formulation of 2 national standards and 2 industry standards, and obtained 6 utility model patents during the reporting period[32]. - The packaging printing production project has achieved an investment progress of 86.48%, with a cumulative investment of ¥7,834.23 million against a commitment of ¥9,058.75 million[52]. - The R&D center construction project has reached a 90.29% investment progress, with a cumulative investment of ¥2,720.96 million against a commitment of ¥3,013.67 million[52]. Shareholder Information - The company does not plan to distribute cash dividends or issue bonus shares[6]. - The annual shareholders' meeting had a participation rate of 75% on May 10, 2018[66]. - Shareholders are committed to not transferring or entrusting their shares for 12 months post-listing, with a maximum of 25% of their total shares allowed for transfer annually thereafter[72]. - The company has established a clear strategy for managing shareholder commitments and ensuring compliance with regulations regarding share transfers[73]. Legal and Compliance - The half-year financial report has not been audited[83]. - The company has made commitments to ensure no losses arise from ongoing litigation and disputes, with the actual controller guaranteeing coverage of any related costs[81]. - There were no significant penalties or rectification measures during the reporting period[88]. - The company has not engaged in any related party transactions during the reporting period[91]. Environmental Compliance - The company is listed as a key pollutant discharge unit, with major pollutants including biochemical oxygen demand and suspended solids, all within regulatory limits[102]. - The company has established pollution prevention facilities, ensuring that domestic wastewater meets local discharge standards[103]. - The company has complied with environmental monitoring requirements, with no instances of exceeding discharge limits[104]. Market Strategy - The company plans to enhance cooperation with existing clients and actively pursue new clients to mitigate risks from intensified market competition and regulatory changes in the tobacco industry[63]. - The company aims to leverage capital to expand into upstream industries and premium packaging to sustain growth[63]. - The company plans to focus on market expansion and new product development in the upcoming quarters[136].

Financial Performance - The company's revenue for Q1 2018 was ¥39,898,070.03, a decrease of 23.72% compared to ¥52,303,735.33 in the same period last year[8] - Net profit attributable to shareholders was ¥7,758,142.51, down 29.09% from ¥10,940,169.69 year-on-year[8] - The net profit after deducting non-recurring gains and losses was ¥7,062,593.97, reflecting a decline of 35.25% compared to ¥10,907,201.46 in the previous year[8] - Basic and diluted earnings per share were both ¥0.05, down 28.57% from ¥0.07 in the previous year[8] - The weighted average return on equity was 1.80%, down from 2.73% in the previous year, a decrease of 0.93%[8] - The net profit attributable to shareholders for the first half of 2018 is expected to range from 14.59 million to 18.24 million RMB, reflecting a decrease of 0% to 20% compared to the same period in 2017[34] - The company anticipates that the performance fluctuation is due to the market conditions of the cigarette industry and the company's order situation[34] Cash Flow and Assets - The net cash flow from operating activities increased significantly to ¥21,023,561.96, a 207.90% improvement from -¥19,484,991.90 in the same period last year[8] - Total assets at the end of the reporting period were ¥508,750,467.26, a decrease of 3.30% from ¥526,117,369.28 at the end of the previous year[8] - Net assets attributable to shareholders increased by 1.82% to ¥434,848,386.64 from ¥427,090,244.13 at the end of the previous year[8] - Cash received from operating activities increased by 292.33% to 1,370,485.74, primarily from rental income of self-owned properties[18] - Cash paid for purchasing goods and services decreased by 30.16% to 34,119,782.97, attributed to reduced payments to suppliers[17] - Cash flow from investment activities amounted to 60,396,684.93, resulting from the maturity of financial products and recovery of principal and income[17] Shareholder Commitments and Stock Management - The company reported a total shareholding commitment of 25% for the first six months post-termination, with a maximum of 50% of shares allowed for sale in the following twelve months[22] - If the stock price falls below the issue price for 20 consecutive trading days or at the end of six months, the lock-up period will automatically extend by six months[22] - The company will adjust the shareholding price and closing price in case of dividends, stock splits, or other equity changes during the lock-up period[22] - The company’s major shareholders expressed a long-term commitment to hold shares, indicating confidence in the industry outlook[24] - After the lock-up period, major shareholders plan to reduce their holdings by no more than 20% of their total shares within 24 months[24] - The minimum selling price for shares post-lock-up will not be lower than the initial public offering price[24] - The company will announce any share reduction plans at least three trading days in advance if they hold at least 5% of total shares[24] - The company is committed to compensating any losses incurred by investors due to violations of shareholding commitments[24] - The company’s shareholding structure includes a commitment to not transfer or manage shares for twelve months post-IPO[22] - The company will retain the right to withhold cash dividends equivalent to any illegal gains from share reductions[22] Compliance and Corporate Governance - The company reported a commitment to avoid competition with its subsidiaries, ensuring no production or development of competing products since the signing of the commitment letter on June 1, 2014[26] - The company has pledged to stabilize its stock price by committing to use at least 50% of the cash dividends received from the company in the previous year for share repurchases[28] - The company will not engage in any related party transactions unless strictly necessary, adhering to the regulations set by the China Securities Regulatory Commission[28] - The company has a long-term commitment to repurchase all newly issued shares if found liable for any misleading statements in its prospectus, with a repurchase price not lower than the issuance price plus applicable interest[28] - The company is currently fulfilling its commitments regarding stock price stabilization and avoiding competition, as stated in its reports[28] - The company has not produced or developed any products that could compete with its subsidiaries since the commitment was signed, ensuring compliance with its competitive obligations[26] - The company will take necessary actions to avoid competition if it expands its product and business scope in the future[26] - The company has established a framework for compensating investors in case of losses due to misleading information in its prospectus[28] - The company is committed to maintaining transparency and accuracy in its financial disclosures to prevent any legal liabilities[28] - The company has outlined its strategy to manage related party transactions in accordance with commercial norms and fair pricing[28] Other Financial Metrics - The company reported non-recurring gains and losses totaling ¥695,548.54 for the period[9] - Accounts receivable decreased by 100% to 0 due to endorsement transfer during the reporting period[17] - Prepayments increased by 204.32% to 1,988,750.47, attributed to higher advance payments to suppliers[17] - Other receivables rose by 212.84% to 1,360,053.06, mainly due to increased bid guarantees and standby funds[17] - Sales revenue from goods and services increased by 30.71% to 74,382,807.75, driven by higher accounts receivable collections[17] - Financial expenses surged by 661.94% to -71,899.73, mainly due to increased interest income during the reporting period[17] - Investment income of 374,231.06 was recognized from matured financial products[17] - Tax expenses decreased by 53.26% to 365,987.99, reflecting a reduction in various additional taxes payable[17] - There are no violations regarding external guarantees during the reporting period[35] - There are no non-operating fund occupations by controlling shareholders or their affiliates during the reporting period[36] - The company has not engaged in any research, communication, or interview activities during the reporting period[37]

Financial Performance - The company's operating revenue for 2017 was CNY 269,338,270.38, representing a slight increase of 0.38% compared to CNY 268,312,232.90 in 2016[16] - The net profit attributable to shareholders for 2017 was CNY 47,592,741.21, a decrease of 5.40% from CNY 50,310,682.44 in 2016[16] - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 42,114,257.86, down 12.83% from CNY 48,311,116.03 in 2016[16] - The basic earnings per share for 2017 was CNY 0.30, a decline of 3.23% compared to CNY 0.31 in 2016[16] - The total assets at the end of 2017 were CNY 526,117,369.28, a decrease of 4.40% from CNY 550,360,164.20 at the end of 2016[17] - The weighted average return on equity for 2017 was 11.69%, down from 19.83% in 2016, indicating a decline of 8.14%[16] - The total sales volume of cigarette labels decreased by 7.95% to 490.6 million boxes in 2017[44] - The company’s main business cost increased by 4.77% to CNY 172.02 million, with a gross margin of 35.34%[43] - The cash dividend payout ratio for 2017 is 84.05% of the net profit attributable to ordinary shareholders[84] Cash Flow and Investments - The net cash flow from operating activities decreased significantly by 74.07% to CNY 28,602,531.89 from CNY 110,288,057.47 in 2016[16] - The company’s cash reserves decreased by 46.69% due to investments in fundraising projects during the reporting period[27] - Investment cash inflow surged by 24,791.33% to ¥415,183,652.04, while cash outflow increased by 702.81% to ¥492,563,432.58, leading to a net cash flow of -¥77,379,780.54[55] - Operating cash inflow decreased by 1.98% to ¥287,971,899.30, while cash outflow increased by 41.36% to ¥259,369,367.41, resulting in a net cash flow of ¥28,602,531.89, down 74.07%[55] Research and Development - The company reported a total of 34 national patents, indicating a strong focus on research and development capabilities[30] - The company expanded its R&D capabilities, applying for 7 new patents, bringing the total to 34 patents by the end of the reporting period[35] - The company has increased its R&D personnel by 19.05% to 50, with R&D investment rising by 65.52% to ¥11,671,961.97, representing 4.33% of operating revenue[53] - The company has implemented a training mechanism combining external and internal resources to improve employee skills continuously[161] Market Position and Strategy - The company has established long-term cooperative relationships with major tobacco companies, including Zhejiang and Yunnan Tobacco, enhancing its market position[29] - The company plans to explore new markets in electronic product packaging and cosmetics packaging, based on thorough market research[34] - The company aims to become a leading professional printing service provider in China, focusing on high-end packaging printing and personalized needs of tobacco industry clients[75] - The company is committed to providing high-quality integrated services for its customers, enhancing its overall service capabilities[31] Shareholder and Dividend Policies - The company plans to distribute a cash dividend of CNY 2.50 per 10 shares, totaling CNY 40,000,000 based on 16,000,000 shares[5] - The company has established a clear profit distribution policy that complies with its articles of association and shareholder resolutions[82] - The company has maintained a consistent cash dividend policy over the past three years, with cash dividends of 30 million yuan in 2015 and 16 million yuan in 2016[84] Corporate Governance and Compliance - The company has established a framework for compliance with regulatory requirements regarding information disclosure and investor protection[96] - The independent directors actively fulfilled their duties and provided independent opinions on various matters, contributing to the improvement of corporate governance[170] - The audit committee held five meetings during the reporting period to review internal controls and ensure the smooth progress of the annual audit[171] - There were no significant internal control deficiencies identified during the reporting period, indicating effective internal controls[175] Risks and Challenges - The company has faced risks in its future development, which are discussed in the report, highlighting the need for investor awareness[5] - Potential risks include industry policy risks that may affect cigarette sales and, consequently, the sales and prices of cigarette labels[76] - The company is facing increased market competition risks due to a tendering system implemented by domestic tobacco manufacturers since 2010[77] Employee and Management Structure - The total number of employees in the company is 366, with 246 in the parent company and 120 in major subsidiaries[159] - The company has a professional composition of 189 production personnel, 7 sales personnel, 74 technical personnel, 13 financial personnel, and 83 administrative personnel[159] - The company has maintained a stable leadership team with no significant changes in management roles during the reporting period[149] Financial Reporting and Audit - The audit opinion for the financial statements was a standard unqualified opinion, affirming that the financial statements fairly reflect the company's financial position as of December 31, 2017[182] - The key audit matter identified was the recognition of revenue, particularly concerning the risk of revenue being recognized in the wrong period[184] - The company confirmed that there were no public bonds issued that were due or unable to be fully redeemed as of the report approval date[180]

Financial Performance - Operating revenue for the reporting period was CNY 58,830,756.18, down 19.95% year-on-year [8]. - Net profit attributable to shareholders was CNY 10,454,552.55, a decline of 24.98% compared to the same period last year [8]. - The net profit after deducting non-recurring gains and losses was CNY 9,565,676.94, down 25.84% year-on-year [8]. - Basic earnings per share were CNY 0.07, a decrease of 41.67% compared to the same period last year [8]. - The weighted average return on net assets was 2.59%, down 2.99% year-on-year [8]. - The estimated net profit attributable to shareholders for 2017 is projected to be between 40.25 million and 52.83 million CNY, reflecting a change of -20.00% to 5.00% compared to 2016's net profit of 50.31 million CNY [27]. - The performance fluctuation is attributed to the impact of the tobacco industry and national regulations, leading to a cautious outlook [27]. - The company is expected to maintain a positive net profit for 2017, indicating stability despite regulatory challenges [27]. Assets and Liabilities - Total assets at the end of the reporting period were CNY 509,643,395.50, a decrease of 7.40% compared to the end of the previous year [8]. - Cash and cash equivalents decreased by 71.15% to ¥61,175,905.69 due to the use of raised funds for investments and increased payments [17]. - Other receivables increased by 54.50% to ¥839,047.20 primarily due to an increase in bid guarantee deposits [17]. - Fixed assets increased by 31.24% to ¥180,559,094.00 mainly from the transfer of construction projects to fixed assets [17]. - The company’s deferred tax assets decreased by 30.83% to ¥1,917,975.72, mainly due to a reduction in bad debt provisions [17]. Cash Flow - The net cash flow from operating activities increased significantly by 262.41% to CNY 21,278,783.54 [8]. - Cash received from investment activities surged by 18,348.17% to ¥251,227,165.71, primarily from the maturity of financial products [18]. - The company reported a 46.31% decrease in cash paid for dividends and interest, totaling ¥16,153,941.66, due to the implementation of the 2016 profit distribution plan [18]. - The company experienced a 3073.33% increase in cash paid for IPO intermediary fees, amounting to ¥9,520,000.00 [18]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 23,001 [12]. - The largest shareholder, Yize Holdings Co., Ltd., held 64.77% of the shares [12]. - The company has committed to not transferring or entrusting the management of its shares for 36 months from the date of listing [20]. - After the lock-up period, the company will limit annual transfers to no more than 25% of the total shares held [21]. - If the stock price falls below the issuance price for 20 consecutive trading days, the lock-up period will be extended by 6 months [21]. - The company will ensure that any share reductions after the lock-up period will not be below the issuance price [21]. - The company reported a net reduction of shares not exceeding 20% of the total shares held after the lock-up period expires [22]. - The company plans to reduce its shareholding by no more than 50% within two years after the lock-up period [23]. Corporate Governance and Commitments - The company commits to avoiding any competition with its subsidiaries and will cease any competing business if necessary [23]. - The company will strictly adhere to the regulations set by the China Securities Regulatory Commission regarding related party transactions [23]. - The company has made commitments to not transfer benefits to other entities or individuals under unfair conditions, ensuring the protection of corporate interests [25]. - The company has established measures to constrain the consumption behavior of directors and senior management, linking it to the execution of compensation measures [25]. - The company is currently fulfilling its commitments regarding social insurance and housing fund payments for employees [26]. - The company has stated that it will bear all financial obligations and responsibilities related to any penalties or losses incurred from social insurance and housing fund issues [26]. Non-Operating Activities - No non-operating fund occupation by controlling shareholders and related parties during the reporting period [29]. - No violations of external guarantees during the reporting period [28]. - No research, communication, or interview activities conducted during the reporting period [30].

Financial Performance - The company's operating revenue for the first half of 2017 was CNY 105,865,323.26, a decrease of 5.45% compared to CNY 111,968,206.30 in the same period last year[19]. - The net profit attributable to shareholders of the listed company was CNY 18,242,568.20, an increase of 13.22% from CNY 16,112,308.81 year-on-year[19]. - The basic earnings per share decreased by 15.38% to CNY 0.11 from CNY 0.13 in the same period last year[19]. - The company reported a total profit of CNY 24,435,420.26, an increase of 12.2% from CNY 21,763,583.94[146]. - The tax expense for the period was CNY 6,192,852.06, compared to CNY 5,651,275.13, indicating a rise of 9.6%[146]. - The company reported a comprehensive income total of CNY 18,242,568.20 for the period, indicating a positive performance despite the overall cash flow challenges[159]. Cash Flow and Investments - The net cash flow from operating activities was CNY 4,411,691.63, down 93.13% from CNY 64,217,003.60 in the previous year[19]. - The company's investment activities resulted in a net cash outflow of CNY 108.13 million, primarily due to increased cash payments for financial products[44]. - The total cash inflow from investment activities was CNY 102,444,273.96, while cash outflow was CNY 210,569,847.10, resulting in a net cash flow of -CNY 108,125,573.14, compared to -CNY 53,458,980.42 last year[154]. - The company's net increase in cash and cash equivalents was -CNY 148,759,145.89, compared to -CNY 19,541,799.80 in the previous year[154]. Assets and Liabilities - Total assets at the end of the reporting period were CNY 501,023,766.16, a decrease of 8.96% from CNY 550,360,164.20 at the end of the previous year[19]. - The total liabilities decreased from CNY 154,862,661.28 to CNY 103,283,695.04, a reduction of about 33.3%[138]. - The company's cash and cash equivalents dropped from CNY 205,424,700.58 to CNY 53,536,986.75, a decrease of approximately 73.9%[141]. - The total equity increased from CNY 395,497,502.92 to CNY 397,740,071.12, an increase of approximately 0.56%[139]. Market and Competition - The company expanded its market presence by participating in tenders from various tobacco companies and optimizing its pricing system to attract new clients[40]. - Increased market competition is anticipated due to the tendering system for cigarette label products, necessitating quality improvements and customer relationship management[74]. - The company has accumulated a strong customer base, becoming a qualified supplier for ten major tobacco companies, which enhances its competitive advantage[32]. Research and Development - Research and development expenses were CNY 2.69 million, down 24.25% from the previous year, reflecting a focus on cost management[44]. - The company established a new R&D center to enhance product innovation, focusing on eco-friendly materials and anti-counterfeiting technologies, resulting in 4 new patent applications during the reporting period[41]. - The company has committed to investing 100 million RMB in R&D for innovative packaging technologies over the next year[84]. Shareholder Information - The company plans not to distribute cash dividends or issue bonus shares[6]. - The total number of shares that can be reduced within 24 months after the lock-up period will not exceed 20% of the total shares held at the end of the lock-up period[83]. - The largest shareholder, Yize Holdings Limited, holds 64.77% of the shares, amounting to 103,632,000 shares[120]. Compliance and Governance - The financial statements were approved by the board on August 22, 2017, indicating a commitment to transparency and compliance[168]. - The company has no significant doubts regarding its ability to continue as a going concern for the next 12 months[170]. - The company has made commitments regarding social insurance and housing fund payments for employees[87]. Risks and Challenges - The company faces risks related to industry policies, particularly in the tobacco sector, which may impact sales and pricing of cigarette labels[73]. - The company emphasizes the need for enhanced management capabilities and talent acquisition to adapt to its growing scale and market changes[76].

Financial Performance - Revenue for Q1 2017 was CNY 52,303,735.33, a decrease of 16.87% compared to CNY 62,920,750.61 in the same period last year[8] - Net profit attributable to shareholders was CNY 10,940,169.69, down 8.20% from CNY 11,916,767.06 year-on-year[8] - Basic earnings per share decreased by 30.00% to CNY 0.14 from CNY 0.20 in the previous year[8] - The net profit attributable to shareholders for the first half of 2017 is expected to range from 14.50 million to 22.56 million RMB, reflecting a change of -10% to 40% compared to the same period in 2016[18] - Net profit for the current period is CNY 10,940,169.69, compared to CNY 11,916,767.06 in the previous period, reflecting a decrease of approximately 8.2%[35] - The net profit for the first quarter of 2017 was CNY 12,061,774.54, an increase of 9.57% compared to CNY 11,009,621.99 in the same period last year[39] Cash Flow - Net cash flow from operating activities was negative CNY 19,484,991.90, a decline of 219.46% compared to CNY 16,311,519.07 in the same period last year[8] - Cash flow from operating activities decreased by 45.23% to 349.32 million RMB due to a reduction in other business income[16] - Cash flow from operating activities showed a net outflow of CNY -19,484,991.90, a significant decline from a net inflow of CNY 16,311,519.07 in the same quarter last year[43] - The total cash outflow from operating activities was CNY 76,739,133.02, an increase from CNY 55,414,658.70 in the same period last year[43] - The company reported a total cash outflow of 29,673,941.66 CNY from financing activities, including 20,000,000.00 CNY for debt repayment[47] - The company experienced a net decrease in cash and cash equivalents of -139,771,564.03 CNY during the quarter[47] Assets and Liabilities - Total assets at the end of the reporting period were CNY 489,071,855.60, down 11.14% from CNY 550,360,164.20 at the end of the previous year[8] - The total assets decreased from 550.36 million RMB at the beginning of the period to 489.07 million RMB at the end of the period[29] - Current liabilities decreased from CNY 135,813,459.91 to CNY 72,481,632.20, a decline of approximately 46.5%[32] - The total liabilities decreased from 154.86 million RMB to 98.63 million RMB, indicating a reduction in financial obligations[28] - The company reported a significant reduction in accounts payable from CNY 75,271,558.24 to CNY 33,191,160.53, a decrease of approximately 56%[32] Shareholder Information - The number of ordinary shareholders at the end of the reporting period was 13,487[11] - The largest shareholder, Yize Holdings Co., Ltd., held 64.77% of the shares, totaling 51,816,000 shares[11] Investment Activities - The company reported a significant increase of 12,123.86% in cash paid for the purchase of fixed assets, amounting to 12.10 million RMB[16] - The cash outflow from investment activities was CNY 72,103,676.00, compared to CNY 99,016.78 in the previous year, indicating a significant increase in investment expenditures[43] - The net cash flow from investment activities was -83,541,804.09 CNY, indicating a significant outflow compared to the previous period[47] - Total cash inflow from investment activities amounted to 17,987,600.00 CNY, while cash outflow reached 101,529,404.09 CNY[47] Tax and Financial Expenses - The cash paid for taxes increased by 72.74% to 15.74 million RMB, primarily due to the payment of taxes accrued from the previous year[16] - The company paid CNY 15,741,617.55 in taxes during the quarter, compared to CNY 9,112,756.99 in the same period last year, reflecting a 73.5% increase[43] - The company incurred financial expenses of CNY 946.13, a decrease from CNY -24,755.43 in the previous year[39] Other Information - The company has no overdue commitments from shareholders or related parties during the reporting period[17] - There were no non-operating fund occupations by controlling shareholders or related parties during the reporting period[21] - The company did not conduct an audit for the first quarter report[49] - The impact of exchange rate changes on cash and cash equivalents was negligible at -0.04 CNY[47]

Financial Performance - The company's operating revenue for 2016 was CNY 268,312,232.90, representing a 10.05% increase compared to CNY 243,800,197.72 in 2015[16]. - The net profit attributable to shareholders for 2016 was CNY 50,310,682.44, a 37.68% increase from CNY 36,540,703.87 in the previous year[16]. - The net cash flow from operating activities reached CNY 110,288,057.47, showing a significant increase of 108.69% compared to CNY 52,847,417.84 in 2015[16]. - The basic earnings per share for 2016 was CNY 0.84, up 37.70% from CNY 0.61 in 2015[16]. - Total assets at the end of 2016 amounted to CNY 550,360,164.20, a 59.80% increase from CNY 344,395,781.35 at the end of 2015[16]. - The net assets attributable to shareholders increased to CNY 395,497,502.92, reflecting a 56.00% growth from CNY 253,530,944.54 in 2015[16]. - The company reported a net profit excluding non-recurring gains and losses of CNY 48,311,116.03, which is a 32.44% increase from CNY 36,476,959.65 in 2015[16]. - The company reported a significant increase in revenue, achieving a total of 90 million yuan for the year 2016[116]. Cash Dividends - The company plans to distribute a cash dividend of CNY 2.00 per 10 shares, with no bonus shares issued[6]. - In 2016, the company distributed cash dividends totaling 16 million yuan, which is 31.80% of the net profit attributable to shareholders[105]. - The cash dividend per 10 shares for 2016 was set at 2 yuan (including tax), based on a total share capital of 80 million shares[107]. - The cash dividend payout ratio for 2015 was 82.10%, with a total cash dividend of 30 million yuan[105]. - The cash dividend policy is in compliance with the company's articles of association and has been transparently executed[102]. - The company has maintained a consistent cash dividend distribution policy over the past three years, with amounts of 36 million yuan in 2014 and 30 million yuan in 2015[105]. - The remaining undistributed profit as of December 31, 2016, was 102.65 million yuan, which will be carried forward to future periods[107]. - The company has a clear and structured decision-making process for profit distribution, ensuring the protection of minority shareholders' rights[102]. - The company has committed to maintaining a minimum cash dividend ratio of 20% during significant capital expenditure phases[106]. Operational Efficiency - The company has implemented lean production management to reduce operating costs and improve production efficiency[44]. - The company has developed advanced printing technologies, including a high-speed inline coding system that significantly improves production efficiency[38]. - The company has a robust production capacity with multiple leading printing production lines, enabling it to meet large-scale and diverse customer demands efficiently[31]. - The company has implemented a comprehensive quality control system, ensuring high standards in product quality across all production stages[31]. - The company has established strong partnerships with major tobacco companies across several provinces, including Zhejiang, Yunnan, and Guangdong, enhancing its market presence[25]. Research and Development - The company is focusing on enhancing its R&D capabilities and aims to establish a national-level technology center and high-tech enterprise status[41]. - R&D investment increased by 19.88% to ¥7,051,569.17 in 2016, accounting for 2.63% of operating revenue[67]. - The number of R&D personnel rose by 61.54% to 42 in 2016, representing 11.54% of the workforce[67]. - The company has accumulated 29 patents, demonstrating its commitment to innovation and technological advancement in the packaging industry[33]. - The company is currently developing several technologies, including gravure wire drawing technology and seamless positioning composite wiring, aimed at improving production efficiency and reducing costs[66]. Market and Sales - The company reported a 9.91% increase in revenue from cigarette labels, totaling CNY 267.09 million, which accounted for 99.54% of total revenue[49]. - The Southwest region contributed 59.36% of total revenue, with a year-on-year increase of 5.61%[49]. - The company signed a major sales contract with Hongta Group worth ¥153,126,900, effective from January 1, 2016, to December 31, 2017[54]. - The top five customers accounted for 91.35% of the total annual sales, with Yunnan Tobacco Group being the largest customer at ¥110,419,829.44, or 41.15% of total sales[62]. - The company reported a significant increase in sales in the Central China region, with a growth rate of 189.06% year-on-year[52]. - Sales volume of cigarette labels increased to 53.3 million boxes, a year-on-year growth of 15.27%[53]. - The inventory level decreased by 47.26% to 2.31 million boxes, indicating improved sales efficiency[53]. Governance and Compliance - The company has a strong governance structure with a mix of experienced professionals in key positions, enhancing its operational effectiveness[171]. - The company has maintained independence in business, assets, personnel, and financial aspects from its controlling shareholders[197]. - The company held 4 shareholder meetings and 8 board meetings during the reporting period, ensuring compliance with governance regulations[196]. - The company has established an independent financial department with dedicated personnel[200]. - A complete and independent financial accounting system is in place, ensuring standardized financial practices[200]. - The company independently makes financial decisions and is responsible for its own profits and losses[200]. - Independent bank accounts are maintained, with no shared accounts with controlling shareholders[200]. - The company operates as an independent taxpayer, fulfilling tax obligations without mixed taxation with shareholder entities[200]. Shareholder Information - The company completed its initial public offering (IPO) of 20,000,000 shares, increasing total shares from 60,000,000 to 80,000,000[147]. - The IPO was approved by the China Securities Regulatory Commission and the shares began trading on December 29, 2016[148]. - The company’s total share capital after the IPO is 80,000,000 shares, with 25% being unrestricted shares[150]. - The largest shareholder, Yize Holdings Limited, holds 64.77% of the shares, totaling 51,816,000 shares[158]. - Chaozhou Nantian Caiyun Investment Co., Ltd. is the second-largest shareholder with a 10.23% stake, equivalent to 8,184,000 shares[158]. - The actual controllers of the company, Zhang Hongqing and Meng Xue, are both Canadian nationals and hold 100% of Yize Holdings Limited[161]. - The company has no preferred shares outstanding during the reporting period[165]. - The company has not reported any shareholding changes or financial compensation for its directors and supervisors during the reporting period[175]. Employee Management - The total number of employees in the company is 364, with 238 in the parent company and 126 in major subsidiaries[190]. - The company has a professional composition of 227 production personnel, 6 sales personnel, 42 technical personnel, 11 financial personnel, and 78 administrative personnel[190]. - The total pre-tax remuneration for senior management during the reporting period is 149.29 million CNY, with the highest individual remuneration being 44.75 million CNY for the general manager[188]. - The company has implemented a performance-based remuneration system for its senior management, linking bonuses to the achievement of annual operational goals[179]. - The company plans to enhance employee training through systematic programs and external educational opportunities[193]. - The company adheres to national laws regarding employee compensation and has established a salary system based on job roles and skills[191]. Risk Management - The company does not foresee any significant risks affecting its normal operations[6]. - The company acknowledges risks related to tobacco industry policies, including increased taxes and expanded smoking bans, which may impact cigarette sales and, consequently, label sales[95]. - Management and human resource risks are recognized, with plans to attract professional talent and improve management capabilities[96].