Financial Performance - Net profit attributable to shareholders increased by 7.99% to CNY 11,327,097.11 for the reporting period[8] - Operating revenue for the reporting period was CNY 78,762,561.40, reflecting a 6.51% increase year-on-year[8] - Basic earnings per share rose by 10.00% to CNY 0.11 for the reporting period[8] - Year-to-date net profit was CNY 11,327,097.11, reflecting a growth from CNY 10,488,914.38 in the previous year[32] - The net profit for Q3 2019 reached CNY 11,327,097.11, representing a 7.9% increase from CNY 10,488,914.38 in Q3 2018[32] - The total profit for the quarter reached CNY 45,031,892.21, up from CNY 42,146,638.88 year-over-year[37] - The basic and diluted earnings per share for the quarter were both CNY 0.37, compared to CNY 0.35 in Q3 2018[38] Assets and Liabilities - Total assets increased by 5.76% to CNY 631,665,042.28 compared to the end of the previous year[8] - Total liabilities were CNY 57,730,035.80, with current liabilities at CNY 44,358,202.94 and non-current liabilities at CNY 13,371,832.86[46] - Owner's equity totaled CNY 539,521,343.35, with share capital at CNY 102,400,000.00 and retained earnings at CNY 176,011,196.44[46] - Total assets reached ¥631,665,042.28, an increase from ¥597,251,379.15 at the end of the previous year[27] - Total liabilities to total assets ratio stands at approximately 9.66%, indicating a low leverage position[46] Cash Flow - The net cash flow from operating activities for the year-to-date period was CNY 36,700,628.53, a significant increase of 118.12%[8] - Cash flow from investment activities decreased by 42.55% to ¥144,700,000.00, attributed to a decrease in financial management principal compared to the same period last year[18] - The cash flow from operating activities generated a net amount of CNY 36,700,628.53, significantly higher than CNY 16,825,756.54 in the previous year[40] - The company received CNY 1,315,081.08 in tax refunds during the quarter, compared to CNY 921,073.09 in the same period last year[40] - The company’s cash flow from financing activities showed a net outflow of CNY 6,144,000.00, compared to a net outflow of CNY 12,800,000.00 in the previous year[41] Shareholder Information - The total number of shareholders at the end of the reporting period was 10,601[12] - The largest shareholder, Jiangsu Huazhi Industrial Co., Ltd., holds 51.00% of the shares[12] - The company did not engage in any repurchase transactions during the reporting period[13] Investments and Expenses - Construction in progress rose by 68.09% to ¥65,520,938.04 primarily due to investments in the R&D center and the purchase of office property in Shanghai[16] - Research and development expenses for Q3 2019 were CNY 2,726,776.57, a decrease of 2.9% from CNY 2,807,785.62 in Q3 2018[32] - Investment income decreased by 62.95% to ¥1,471,642.28, primarily due to a reduction in financial management principal compared to the same period last year[18] Other Financial Metrics - The weighted average return on net assets was 2.00%, a slight decrease of 0.01% compared to the previous year[8] - The company received government subsidies amounting to CNY 2,694,603.77 during the year-to-date period[9] - Deferred income tax liabilities increased by 231.33% to ¥6,100,061.99 mainly due to accelerated depreciation of fixed assets[16] - The company reported a financial income of CNY 188,148.90 in Q3 2019, compared to CNY 184,095.53 in the same period last year[32] Audit and Reporting - The report for the third quarter was not audited, which may impact the reliability of the financial data presented[47] - The company has implemented new financial instrument standards since January 1, 2019, affecting the reporting of financial assets[47]

Financial Performance - Total revenue for the first half of 2019 was RMB 149,694,765.49, an increase of 0.53% compared to RMB 148,912,780.80 in the same period last year[19]. - Net profit attributable to shareholders was RMB 26,447,438.90, representing a growth of 6.01% from RMB 24,948,415.17 year-on-year[19]. - Net profit after deducting non-recurring gains and losses was RMB 21,624,208.40, up 9.37% from RMB 19,771,880.50 in the previous year[19]. - Basic earnings per share rose to RMB 0.26, an increase of 8.33% from RMB 0.24 in the previous year[19]. - The company achieved operating revenue of 149.69 million yuan, a year-on-year increase of 0.53%[28]. - Net profit attributable to shareholders reached 26.44 million yuan, up 6.01% year-on-year, while the net profit after deducting non-recurring gains and losses was 21.62 million yuan, reflecting a growth of 9.37%[28]. - Operating costs decreased by 1.50% to ¥104,938,415.47 from ¥106,531,186.08, while sales expenses fell by 1.86% to ¥6,397,355.99[45]. - The company reported a financial income of CNY 614,016.18, up from CNY 200,248.09, reflecting a significant increase of approximately 206.00%[131]. Cash Flow and Liquidity - Operating cash flow net amount reached RMB 25,719,797.05, a significant increase of 160.07% compared to RMB 9,889,510.70 in the same period last year[19]. - The net cash flow from operating activities surged by 160.07% to ¥25,719,797.05, primarily due to increased government subsidies and tax refunds[45]. - Cash inflow from investment activities totaled ¥90,081,753.93, down from ¥160,876,390.24 in the previous year[136]. - Cash outflow from investment activities was ¥151,151,094.53, compared to ¥178,126,269.31 in the first half of 2018[136]. - The ending balance of cash and cash equivalents was ¥59,227,485.60, a decrease from ¥60,400,549.22 at the end of the first half of 2018[136]. Assets and Liabilities - Total assets at the end of the reporting period were RMB 616,396,257.31, reflecting a growth of 3.21% from RMB 597,251,379.15 at the end of the previous year[19]. - Total liabilities decreased slightly to CNY 56,571,475.06 from CNY 57,730,035.80, a decline of about 2.01%[128]. - The company's current assets totaled RMB 301,095,477.53, down from RMB 321,092,414.76 at the end of 2018, indicating a decrease of approximately 6.2%[126]. - Non-current assets totaled RMB 315,300,779.78, an increase from RMB 276,158,964.39, indicating a growth of approximately 14.2%[126]. Research and Development - The company holds 44 patents, including 23 invention patents and 21 utility model patents, showcasing its strong R&D capabilities[31]. - The company increased its R&D investment by 9.02% to ¥5,476,366.62, up from ¥5,023,165.91 in the previous year[45]. - The company is constructing a new R&D center to enhance its capabilities in new product and technology development, with the design plan approved and construction underway[42]. - The company has conducted market research and product positioning for new products, which are now ready for mass production following the completion of the functional polyester film project[71]. Business Operations - The company specializes in the research, production, and sales of functional plastic film materials, primarily serving the smart card manufacturing industry[25]. - The company’s ETC card base new materials sold 37 tons in June, accounting for approximately 8.93% of the monthly main business revenue[40]. - The sales of mid-to-high-end products increased, with significant growth in colored substrates and PETG series products[38]. - The company has established stable partnerships with high-end clients, enhancing its resource allocation and risk resistance capabilities[35]. Investment and Capital Structure - The company has committed to invest a total of 20,000.62 million RMB in various projects, with cumulative investment reaching 15,733.06 million RMB, representing a progress rate of 78.7%[61]. - The company has utilized 4,500 million RMB of raised funds for bank wealth management products, with a remaining balance of 4,470 million RMB[65]. - The total share capital increased from CNY 64,000,000 to CNY 102,400,000 after a capital increase of 38,400,000 shares[150]. - The company completed the absorption merger of its wholly-owned subsidiary Jiangsu Yasu Technology Co., Ltd. on March 18, 2019[101]. Risk Factors - The company faces risks including fluctuations in raw material prices and potential impacts from mobile payments on the card issuance volume in downstream industries[5]. - The company is facing risks from fluctuations in raw material prices, particularly PVC, which are influenced by international crude oil prices, and has strategies in place to mitigate these risks[70]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 9,080[107]. - The largest shareholder, Jiangsu Huazhi Industrial Trade Co., Ltd., holds 51.00% of the shares[107]. - The total number of shares outstanding is 102,400,000[105]. Compliance and Governance - The financial report for the first half of 2019 was not audited[123]. - The company has not reported any significant changes in the feasibility of its investment projects during the reporting period[63]. - The company has not engaged in any derivative investments or entrusted loans during the reporting period[66]. - The company has not sold any major assets or equity during the reporting period[67].

江苏华信新材料股份有限公司 2019 年第一季度报告全文 江苏华信新材料股份有限公司 2019 年第一季度报告 公告编号：2019-026 二○一九年四月 1 江苏华信新材料股份有限公司 2019 年第一季度报告全文 第一节 重要提示 公司董事会、监事会及董事、监事、高级管理人员保证季度报告内容的真 实、准确、完整，不存在虚假记载、误导性陈述或者重大遗漏，并承担个别和 连带的法律责任。 所有董事均已出席了审议本次季报的董事会会议。 公司负责人李振斌、主管会计工作负责人李兰及会计机构负责人(会计主管 人员)杨希颖声明：保证季度报告中财务报表的真实、准确、完整。 2 江苏华信新材料股份有限公司 2019 年第一季度报告全文 第二节 公司基本情况 一、主要会计数据和财务指标 公司是否需追溯调整或重述以前年度会计数据 □ 是 √ 否 | | 本报告期 | 上年同期 | 本报告期比上年同期增减 | | --- | --- | --- | --- | | 营业总收入（元） | 73,377,358.00 | 79,749,279.73 | -7.99% | | 归属于上市公司股东的净利润（元） | 13,829,257. ...

江苏华信新材料股份有限公司 2018 年年度报告全文 江苏华信新材料股份有限公司 2018 年年度报告 公告编号：2018-019 二○一九年四月 1 公司经本次董事会审议通过的利润分配预案为：以 102,400,000 为基数，向 全体股东每 10 股派发现金红利 0.60 元（含税），送红股 0 股（含税），以资本公 积金向全体股东每 10 股转增 0 股。 江苏华信新材料股份有限公司 2018 年年度报告全文 2 第一节 重要提示、目录和释义 | | | 公司董事会、监事会及董事、监事、高级管理人员保证年度报告内容的真 实、准确、完整，不存在虚假记载、误导性陈述或重大遗漏，并承担个别和连 带的法律责任。 公司负责人李振斌、主管会计工作负责人李兰及会计机构负责人(会计主管 人员)杨希颖声明：保证年度报告中财务报告的真实、准确、完整。 所有董事均已出席了审议本报告的董事会会议。 本报告中所涉及的未来计划，发展战略、经营业绩的预计等前瞻性描述不 构成公司对投资者的实质承诺，投资者及相关人士均应当对此保持足够的风险 认识，并且应当理解计划、预测与承诺之间的差异，敬请投资者注意投资风险。 公司已在本报告中描述了存 ...

Financial Performance - Operating revenue for the current period was CNY 73,951,043.89, representing a 19.71% increase year-on-year[8] - Net profit attributable to shareholders for the current period was CNY 10,488,914.38, up 10.16% year-on-year[8] - Net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 9,342,071.36, a slight decrease of 0.19% year-on-year[8] - The company's operating revenue for the current period reached CNY 222,863,824.69, an increase of 16.1% compared to CNY 192,054,335.92 in the previous period[41] - The net profit for the current period was CNY 35,437,329.55, representing a growth of 7.7% from CNY 32,875,950.89 in the previous period[43] - The total profit for the current period was CNY 42,146,638.88, up 8.8% from CNY 38,719,391.24 in the previous period[42] - The net profit for Q3 2018 was CNY 35,286,494.94, an increase of 8.5% compared to CNY 32,536,903.00 in the same period last year[46] - Total comprehensive income for the quarter was CNY 35,286,494.94, compared to CNY 32,536,903.00, showing an increase of 8.5%[47] Assets and Liabilities - Total assets increased by 3.09% to CNY 580,798,160.73 compared to the end of the previous year[8] - Net assets attributable to shareholders increased by 4.48% to CNY 528,274,890.49 compared to the end of the previous year[8] - The company's total assets increased to ¥580,798,160.73 from ¥563,404,388.94, reflecting a growth in both current and non-current assets[28] - The company's total liabilities decreased to ¥52,523,270.24, down 8.5% from ¥57,766,828.00[32] - The equity attributable to the parent company increased to ¥528,274,890.49, compared to ¥505,637,560.94 at the beginning of the period, marking a growth of 4.5%[32] Cash Flow - Cash flow from operating activities decreased by 33.06% to CNY 16,825,756.54 year-to-date[8] - The cash flow from operating activities generated a net amount of CNY 16,825,756.54, down from CNY 25,135,375.58 in the previous year, a decrease of about 33%[50] - The net increase in cash and cash equivalents for the period was 21,876,464.08, compared to a decrease of -6,987,278.08 in the previous period[54] - The ending balance of cash and cash equivalents was 91,622,329.39, up from 69,745,865.31 at the beginning of the period[54] Expenses - Management expenses increased by 38.44% to ¥17,579,354.46 from ¥12,697,993.09 mainly due to rising employee salaries and new product R&D costs[19] - Cash paid to employees increased by 35.72% to ¥25,310,614.36 from ¥18,648,995.67 due to rising employee wages[19] - Research and development expenses for the quarter were ¥2,807,785.62, which is a 67.1% increase compared to ¥1,680,272.30 in the previous year[34] - Research and development expenses increased to CNY 7,830,951.53, up 33.0% from CNY 5,894,689.91 in the previous period[42] Other Income and Gains - Government subsidies recognized in the current period amounted to CNY 3,572,227.86[9] - The company achieved other income of CNY 3,572,227.86, compared to CNY 847,080.00 in the previous period, showing a substantial increase[42] - Investment income received in cash rose by 10,931.98% to ¥3,971,514.51 from ¥36,000.00 primarily due to returns from financial products[19] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 10,132[12] - The company distributed cash dividends amounting to ¥12,800,000.00, a 1510.95% increase from ¥794,562.52 in the previous period[19] Inventory and Receivables - Other receivables rose by 275.14% to ¥990,847.44 from ¥264,125.51 primarily due to an increase in accrued interest[17] - Inventory increased by 41.85% to ¥43,718,024.87 from ¥30,819,787.99 driven by an increase in orders[17] - Inventory levels increased to ¥43,179,124.14, a significant rise of 42.7% from ¥30,256,454.49[30] Financial Position - Basic earnings per share decreased by 16.67% to CNY 0.10 for the current period[8] - Weighted average return on equity decreased by 1.27% to 2.01% for the current period[8] - Basic earnings per share decreased to CNY 0.35 from CNY 0.43, reflecting a decline of 18.6%[43] Audit Status - The company’s third-quarter report was not audited[55]

Financial Performance - Total revenue for the first half of 2018 was CNY 148,912,780.80, representing a 14.30% increase compared to CNY 130,277,499.38 in the same period last year[19]. - Net profit attributable to shareholders was CNY 24,948,415.17, up 6.82% from CNY 23,354,619.59 year-on-year[19]. - Net profit after deducting non-recurring gains and losses was CNY 19,771,880.50, reflecting a 4.33% increase from CNY 18,951,466.83 in the previous year[19]. - Basic earnings per share decreased by 20.00% to CNY 0.24 from CNY 0.30 in the previous year[19]. - The company achieved operating revenue of 148.91 million yuan, a year-on-year increase of 14.30%[28]. - The net profit attributable to shareholders was 24.95 million yuan, representing a year-on-year growth of 6.82%[28]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was 19.77 million yuan, up 4.33% year-on-year[28]. - The total profit for the first half of 2018 was CNY 29,664,399.33, compared to CNY 27,277,908.77 in the same period of 2017[142]. - The company maintained a stable tax expense of CNY 4,715,984.16, up from CNY 3,923,289.18 year-over-year[142]. Cash Flow and Assets - Operating cash flow decreased significantly by 64.10%, totaling CNY 9,889,510.70 compared to CNY 27,547,397.44 in the same period last year[19]. - The net cash flow from operating activities decreased by 64.10% to ¥9,889,510.70 from ¥27,547,397.44, primarily due to increased employee salaries and inventory levels[45]. - Cash inflow from investment activities was ¥160,876,390.24, with cash outflow totaling ¥178,126,269.31, leading to a net cash flow of -¥17,249,879.07[150]. - Total current assets decreased from ¥364,147,283.53 to ¥346,620,750.82, a decline of approximately 4.3%[131]. - Cash and cash equivalents decreased from ¥79,962,216.93 to ¥68,605,133.22, a reduction of about 14.8%[130]. - Total liabilities decreased from ¥57,766,828.00 to ¥48,921,116.44, a reduction of approximately 15.3%[132]. - Total equity increased from ¥505,637,560.94 to ¥517,785,976.11, an increase of about 2.3%[134]. Investments and Projects - The company has invested a total of ¥11,640.42 million from the raised funds, with ¥2,979.84 million invested during the reporting period[58]. - The company is in the process of completing the construction of the annual production capacity of 8,000 tons of intelligent card base material, expected to be operational by January 2019[42]. - The annual production capacity for the smart card base material project is 8,000 tons, with a cumulative investment of CNY 10,429.83 million, achieving 97.73% of the planned investment[61]. - The annual production capacity for the functional polyester film project is 4,000 tons, with a cumulative investment of CNY 1,210.59 million, achieving only 24.69% of the planned investment[61]. Market and Product Development - The company specializes in the research, production, and sales of functional plastic film materials, primarily serving the smart card manufacturing industry[26]. - The company’s new product, the colored card base series, achieved bulk sales during the reporting period, becoming a new profit growth point[39]. - The company has established stable partnerships with high-end clients such as Eastcompeace and IDEMIA, enhancing resource allocation and risk resistance[35]. - The company has seen significant growth in its new color card base product line, which has become a new profit growth point in the first half of the year[75]. - The trend of converting documents into card formats is expected to continue, impacting various sectors including ID cards and driving licenses[75]. Risks and Challenges - The company faces risks from fluctuations in raw material prices, particularly PVC, which may affect profitability[71]. - The company intends to adjust the prices of PVC card base products in response to raw material price fluctuations to mitigate margin risks[72]. - The company has established a talent development environment and management mechanism, but still faces risks of insufficient technical and managerial talent due to industry competition and scale expansion[73]. Shareholder Information - The company has a total share capital of 102,400,000 shares after a capital increase of 38,400,000 shares through a bonus issue[108]. - The largest shareholder, Jiangsu Huazhi Industrial Co., Ltd., holds 51.00% of the shares, amounting to 52,224,000 shares[113]. - The second-largest shareholder, Suzhou Guofa Zhifu Investment Enterprise, holds 9.00% of the shares, totaling 9,216,000 shares[113]. - The total number of ordinary shareholders at the end of the reporting period was 10,981[113]. Environmental and Social Responsibility - The company does not belong to the key pollutant discharge units as per environmental protection department announcements[98]. - The company has implemented ISO14001 environmental management system certification and other certifications[98]. - The company actively promotes energy conservation and emission reduction initiatives[98]. - The company plans to continue its targeted poverty alleviation efforts in economically weak villages[103]. Legal and Compliance - There were no significant legal disputes or penalties reported during the reporting period[84]. - The financial report for the first half of 2018 was not audited[128]. - The company’s financial reports comply with the relevant accounting standards and accurately reflect its financial status as of June 30, 2018[184].

江苏华信新材料股份有限公司 2018 年第一季度报告全文 江苏华信新材料股份有限公司 2018 年第一季度报告 公告编号：2018-029 二○一八年四月 1 江苏华信新材料股份有限公司 2018 年第一季度报告全文 第一节 重要提示 第二节 公司基本情况 一、主要会计数据和财务指标 公司是否需追溯调整或重述以前年度会计数据 公司董事会、监事会及董事、监事、高级管理人员保证季度报告内容的真 实、准确、完整，不存在虚假记载、误导性陈述或者重大遗漏，并承担个别和 连带的法律责任。 所有董事均已出席了审议本次季报的董事会会议。 公司负责人李振斌、主管会计工作负责人李兰及会计机构负责人(会计主管 人员)杨希颖声明：保证季度报告中财务报表的真实、准确、完整。 2 江苏华信新材料股份有限公司 2018 年第一季度报告全文 □ 是 √ 否 | | 本报告期 | 上年同期 | 本报告期比上年同期增 | | --- | --- | --- | --- | | | | | 减 | | 营业总收入（元） | 79,749,279.73 | 65,796,036.57 | 21.21% | | 归属于上市公司股东的净利润（元） | ...

Financial Performance - The company's operating revenue for 2017 was ¥283,838,781.23, representing a 24.59% increase compared to ¥227,823,367.15 in 2016[15] - The net profit attributable to shareholders for 2017 was ¥43,088,816.17, a slight increase of 2.13% from ¥42,191,815.64 in 2016[15] - The net profit after deducting non-recurring gains and losses was ¥38,169,487.73, which is a decrease of 3.71% from ¥39,641,614.92 in 2016[15] - The net cash flow from operating activities decreased by 30.49% to ¥38,021,019.10 from ¥54,696,917.87 in 2016[15] - The total assets at the end of 2017 were ¥563,404,388.94, an increase of 51.83% from ¥371,074,241.69 at the end of 2016[17] - The net assets attributable to shareholders increased by 92.59% to ¥505,637,560.94 from ¥262,542,568.66 at the end of 2016[17] - The basic earnings per share for 2017 was ¥0.87, a decrease of 1.14% from ¥0.88 in 2016[15] - The weighted average return on equity for 2017 was 14.33%, down from 17.12% in 2016[17] Market Expansion and Product Development - The main driver for revenue growth was the expansion of domestic and international market efforts, leading to increased sales and order volumes[40] - The company developed new products including color substrates and a dual-layer coating for personalized printing, contributing to its competitive edge[42] - The company expanded its international market presence, exporting products to countries such as Germany, Ukraine, and Brazil, with significant sales growth in PETG materials[41] - The company is focusing on developing environmentally friendly and biodegradable card substrates to meet the evolving market demands[27] - The company is actively pursuing strategies for market expansion and product development to drive future growth[131] Research and Development - The company holds 36 patents, including 16 invention patents, demonstrating its commitment to technological research and innovation[30] - Research and development expenses for 2017 were CNY 8,881,123.09, accounting for 3.13% of total operating revenue[62] - The company has ongoing projects aimed at developing new materials, including a low-temperature polyester substrate and a heat-resistant smart card substrate[62] - The company is investing in a new R&D center to enhance its capabilities in functional polyester film and new card materials, providing a better environment for innovation[102] Cash Flow and Financial Management - The net cash flow from investing activities increased by 267.55% year-on-year, mainly due to funds raised from the initial public offering and self-owned funds used to purchase financial products[64] - The cash inflow from financing activities surged by 1,196.64% compared to the previous year, primarily due to the funds received from the initial public offering[64] - The total cash and cash equivalents increased by 191.42% compared to the previous year, reaching 24,994,394.95 yuan[64] - The company reported a total of 13,500 million CNY in entrusted financial management, with an expected return of 218.68 million CNY[165] Shareholder Returns and Dividends - The company plans to distribute a cash dividend of ¥2.00 per 10 shares, totaling ¥12,800,000 based on 64,000,000 shares[4] - The total distributable profit for the year is 135,736,862.34 CNY[123] - The company distributed a cash dividend of RMB 2 per 10 shares, totaling RMB 12,800,000, which represents 29.71% of the net profit attributable to ordinary shareholders[128] - The board of directors must approve the profit distribution plan, which then requires approval from the shareholders' meeting[114] Risks and Challenges - The company has identified risks including raw material price fluctuations and talent shortages that may impact future performance[5] - The company acknowledges risks from raw material price fluctuations, particularly PVC, and plans to adjust product prices accordingly to mitigate profit impacts[98] - The company is addressing potential talent shortages by optimizing its talent structure and enhancing training programs to ensure a skilled workforce[101] Corporate Governance and Compliance - The company has established a comprehensive governance structure to protect the rights of shareholders and creditors, ensuring timely and accurate information disclosure[170] - The company has committed to stabilizing its stock price through measures such as increasing shareholdings by controlling shareholders and senior management, and repurchasing shares[134] - The company has established a mechanism to ensure the protection of minority shareholders' rights in the profit distribution process[121] Social Responsibility and Environmental Commitment - The company is committed to social responsibility, actively participating in public welfare and supporting local education and healthcare initiatives[175] - The company emphasizes environmental protection by developing resource-saving and environmentally friendly products, including PETG and PHA[174] - The company does not belong to the key pollutant discharge units as per environmental protection department announcements[177] Future Outlook - The company provided a positive outlook for the next fiscal year, projecting a revenue growth of 25% based on new product launches and market expansion strategies[137] - The company plans to achieve a sales revenue growth of over 10% year-on-year in 2018, further increasing market share[96] - The company is positioned to benefit from the ongoing transition of various identification documents to card formats, which is a future trend in the industry[86]