Core Viewpoint - The second largest shareholder of Global Printing has announced a plan to reduce its holdings for the second time this year, continuing a trend that began in 2020, amid the company's ongoing poor performance and losses in recent years [1][2]. Shareholder Reduction - The second largest shareholder, Hong Kong Original Stone International Limited, plans to reduce its holdings by up to 3,200,400 shares, representing 1% of the total share capital, due to personal financial needs [2][3]. - Since 2020, Hong Kong Original Stone has been gradually reducing its stake, with previous reductions including 1.5 million shares in mid-2020 and 287.54 million shares from late 2020 to April 2021 [9]. Financial Performance - Global Printing reported a revenue of 439 million yuan in the first half of 2025, a decrease of 43.53% year-on-year, with a net loss of 371,990 yuan, down 109.85% compared to the previous year [10][11]. - All three core business segments experienced revenue declines, with the internet digital marketing segment seeing a staggering drop of 78.27% [11][12]. - The company has faced significant challenges in its internet digital marketing business due to economic changes, increased competition, and overdue accounts receivable, leading to a severe decline in operational performance [13]. Historical Performance Trends - From 2021 to 2024, Global Printing's revenue decreased from 29.36 billion yuan to 13.97 billion yuan, with net profits turning into losses of 5.24 million yuan in 2024 [13]. - The company's stock price has also seen a significant decline, dropping from a peak of 18.92 yuan in 2020 to a low of 5.51 yuan in 2024, with a current closing price of 7.91 yuan as of September 23, 2025 [13]. Management Response - The company emphasizes its commitment to market value management and shareholder interests, stating that shareholder reductions do not necessarily conflict with its market value management efforts [14].

Core Viewpoint - The recent mid-year report for 2025 from Global Printing (002799) indicates significant declines in revenue and profit, primarily due to a contraction in the internet digital marketing business and increased management costs [2][14]. Business Overview - As of the reporting period, the total operating revenue was 439 million yuan, a year-on-year decrease of 43.53% [2]. - The net profit attributable to shareholders was -3.72 million yuan, down 109.85% year-on-year [2]. - The second quarter alone saw an operating revenue of 201 million yuan, a decline of 38.6% year-on-year [2]. Financial Metrics Analysis - The gross profit margin for the mid-year report was 16.48%, an increase of 12.38% year-on-year [3]. - The net profit margin was -1.03%, a decrease of 120.53% year-on-year [3]. - Earnings per share were -0.01 yuan, down 108.33% year-on-year [3]. Cost and Expenses - Total operating expenses (selling, administrative, and financial expenses) amounted to 50.56 million yuan, representing 11.52% of revenue, an increase of 105.42% year-on-year [4]. - Administrative expenses rose by 37.8%, primarily due to increased wages and salaries during the reporting period [4]. Main Business Composition - Revenue from the pharmaceutical and other paper box business was 212 million yuan, accounting for 48.31% of total revenue, with a gross margin of 20.64% [5]. - The printing and packaging supply chain business generated 158 million yuan, making up 35.90% of total revenue, with a gross margin of 15.07% [6]. - Internet digital marketing contributed 66.03 million yuan, representing 15.04% of total revenue, with a gross margin of 3.00% [7]. - Other business segments generated 3.27 million yuan, accounting for 0.75% of total revenue, with a gross margin of 86.71% [8]. Regional Distribution - Revenue from the North China region was 154 million yuan, accounting for 35.15% of total revenue, with a gross margin of 15.55% [9]. - The Central South region contributed 114 million yuan, representing 26.08% of total revenue, with a gross margin of 13.68% [10]. - The East China region generated 91.34 million yuan, making up 20.81% of total revenue, with a gross margin of 14.80% [11]. - Revenue from Northwest, Northeast, Southwest regions, and overseas sales were 36.71 million yuan, 24.38 million yuan, 13.81 million yuan, and 3.93 million yuan, respectively [13]. Operational Commentary - The decline in operating revenue is primarily attributed to the contraction in the internet digital marketing business, alongside increased management costs and overdue accounts receivable [14]. - Despite these challenges, the company maintains a competitive edge in the pharmaceutical and consumer packaging sectors and continues to optimize resource allocation to enhance overall efficiency [14]. Core Competitiveness Analysis - The company possesses advantages in brand and customer resources, manufacturing, innovation, management, and safety and environmental protection in the pharmaceutical packaging business [15]. - In the printing and packaging supply chain management sector, the company has advantages in industry resource integration, customer resources, R&D and technical services, and talent [15]. Financial Health Status - The company has a healthy cash asset position, but attention is needed on cash flow, with the average operating cash flow over the past three years being 15.09% of current liabilities [16].

Performance Forecast - The company expects a net loss attributable to shareholders of between 3.5 million and 6 million yuan, compared to a profit of 37.75 million yuan in the same period last year [1] - The net profit after deducting non-recurring gains and losses is expected to be a loss of 5 million to 8 million yuan, down from a profit of 36.73 million yuan in the previous year [1] - Basic earnings per share are projected to be a loss of 0.01 to 0.02 yuan per share, compared to earnings of 0.12 yuan per share last year [1] Communication with Auditors - The financial data in this performance forecast has not been audited by the accounting firm, but the company has communicated with the auditors regarding the forecast, and there are no discrepancies [1] Reasons for Performance Change - The decline in net profit attributable to shareholders and the net profit after deducting non-recurring gains and losses is primarily due to increased costs from the new factory in the pharmaceutical and other paper box businesses, as well as intensified market competition leading to a decrease in gross margin [1] - The contraction in the internet digital marketing business has also impacted overall performance [1]