Core Viewpoint - The new social insurance regulations issued by the Supreme People's Court are causing significant anxiety among small and micro enterprises, leading some owners to consider drastic measures such as layoffs or shutting down their businesses [2][3][4]. Summary by Sections Legal Interpretation - The Supreme People's Court released an interpretation on August 1, clarifying legal standards regarding labor disputes, particularly concerning social insurance obligations [3][4]. - The new regulations state that any agreement between employers and employees to waive social insurance payments is invalid, and courts will support employees seeking compensation if employers fail to pay [3][4]. Impact on Small Enterprises - Small business owners, like Chen Ping from Yiwu, are feeling the pressure from these new regulations, leading to decisions such as closing down operations after years of struggling to maintain profitability [2][3][4]. - Many small factories have relied on informal labor practices, avoiding social insurance payments, which now poses a risk of legal repercussions under the new rules [6][7]. Business Strategies and Adjustments - Some factory owners are attempting to adapt by restructuring their business models, such as splitting wages to include social insurance subsidies, thereby mitigating potential legal risks [9][10]. - Others, like Li Ke, are reducing their workforce and operational scale to manage costs while maintaining some level of business continuity [8][9]. Broader Economic Context - The economic environment for small manufacturers has been challenging, with many facing declining orders and increased competition from e-commerce platforms, leading to a cycle of price undercutting and reduced profitability [15][16]. - The new social insurance regulations are seen as an additional burden on already struggling enterprises, prompting discussions about the sustainability of their business models [12][13]. Emotional and Psychological Effects - The emotional toll on business owners is evident, with many expressing feelings of despair and uncertainty about the future, as seen in the case of Chen Ping, who reflects on the closure of his factory after 15 years [13][17]. - The anxiety surrounding compliance with the new regulations is widespread among small business owners, leading to a sense of urgency in making operational changes [12][13].

Core Viewpoint - The company, Qing Song Co., Ltd., is primarily engaged in the design, research and development, and manufacturing of cosmetics, including facial masks, skincare products, and wet wipes, with a significant focus on ODM (Original Design Manufacturer) services [6][8]. Company Overview - The company operates in the chemical raw materials and chemical products manufacturing industry, specifically in the cosmetics manufacturing sector [6]. - The main business entity is its wholly-owned subsidiary, Nuo Si Bei Cosmetics Co., Ltd., which contributes 99.52% of the consolidated revenue [8]. Business Operations - Nuo Si Bei specializes in the design, research and development, and manufacturing of facial masks, skincare products, wet wipes, and non-woven fabric products, making it one of the largest domestic ODM companies in China [8]. - The upstream supply chain includes natural cellulose fibers, polyester fibers, and viscose fibers for mask substrates, while the downstream market consists of cosmetic brand owners and various retail channels, including e-commerce and physical stores [9]. Financial Data - The company has not restated or adjusted previous years' financial data, indicating stability in its financial reporting [10]. - The company has implemented a share repurchase plan, with a total repurchase amount of approximately RMB 65.8 million, representing 3.49% of the total share capital [11]. Major Projects - The company has decided to terminate the construction of a large industrial park project on 148 acres and is negotiating with government authorities to return the land use rights [12][13]. - A new investment partnership has been formed with Mi Jia Technology Co., Ltd. to develop the 148-acre land project, with Nuo Si Bei holding a 20% stake in the newly established joint venture [13][14]. Strategic Investments - The company has increased its stake in Guangdong Ke Pu Rui Biotechnology Co., Ltd. to 60%, enhancing its capabilities in synthetic biology and new material technology [15]. - A new wholly-owned subsidiary, Guangdong Nuo Mi Jia Biomedical Co., Ltd., has been established to support the company's strategic development needs [16].