Core Viewpoint - Shunhao Co., Ltd. is actively preparing for the launch of its first experimental satellite, expected by the end of 2025, although the exact date may vary due to external factors such as approvals and launch site scheduling [1] Company Overview - Shunhao Co., Ltd. is a high-tech enterprise engaged in the research, manufacturing, and sales of environmentally friendly packaging materials [1] - The company operates in four main business areas: research, production, and sales of specialty eco-friendly paper; research, production, and sales of printed products; deep processing of industrial hemp and application scenario development; and research, production, and sales of new tobacco products [1]

Core Viewpoint - Shanghai Shunhao New Materials Technology Co., Ltd. plans to issue shares overseas (H-shares) and list on the Hong Kong Stock Exchange to enhance its global strategy and competitiveness [2] Company Overview - Shunhao Co. was established in 2004 and focuses on four main business areas: research, production, and sales of specialty environmentally friendly paper; printing products; deep processing of industrial hemp; and research, production, and sales of new tobacco products [2] - The company was listed on the Shenzhen Stock Exchange on March 18, 2011, with a current market capitalization exceeding 9.1 billion yuan [2] Financial Performance - In the first half of 2025, Shunhao Co. achieved a revenue of 620 million yuan, a year-on-year decrease of 12.19% - The net profit attributable to shareholders was 33.3 million yuan, representing a year-on-year increase of 23.11% [2] Shareholding Structure - As of June 2025, Shunhao Investment Group Co., Ltd. is the largest shareholder, holding 20.10% of the shares [3] - The actual controller of the company, Wang Zhenglin, holds 100% of the shares of the largest shareholder, and together with Wang Dan, they hold a combined 23.86% [4] Management Changes - In June 2025, several vice presidents, including Zhang Xiaoyong and Hou Ningning, resigned, while three new vice presidents, Ni Li, Xiang Songlin, and Wu Di, were appointed [6] - Ni Li has extensive experience in international trade and has held various managerial positions within the company [6][7]

Core Viewpoint - Shunhao Co., Ltd. plans to issue H shares and list on the Hong Kong Stock Exchange despite declining performance and ongoing legal issues, raising questions about the necessity and feasibility of the IPO [1][10]. Financial Performance - Shunhao's revenue and net profit have been on a downward trend since 2018, with revenue failing to exceed the 2018 peak of 20.55 billion yuan, and net profit showing significant losses in several years [4][5]. - In the first half of 2025, the company reported revenue of 620 million yuan and a net profit of 29 million yuan, representing year-on-year declines of 12.19% and 6.24% respectively [6]. Employee Reduction - The company has reduced its workforce by nearly 50% over the past seven years, from 2,121 employees in 2017 to 1,116 in 2024, indicating ongoing operational challenges [7][9]. Acquisition Issues - Shunhao has faced significant losses due to problematic acquisitions, such as the 2013 purchase of Zhejiang Demei, which led to a loss of 51 million yuan in 2014 due to management misconduct [5][6]. Legal and Compliance Challenges - The company is currently under investigation for alleged unit bribery, which poses a significant obstacle to its IPO plans, as compliance with regulatory standards is critical for approval from both the China Securities Regulatory Commission and the Hong Kong Stock Exchange [11][12][13].