HXPP(SZ:002228)2022-12-07 09:22Group 1: Fund Establishment and Progress - The company has established two industrial funds, with the first fund in collaboration with Zhongxin Rongchuang, having an initial amount of over 200 million RMB, where the company subscribed for 20% of the first phase [1] - The second fund, in partnership with GF Xinde and Ruiyuan Capital, has a target scale of 800 million RMB (with an initial phase of 200 million RMB), and the company’s wholly-owned subsidiary, Yurong Investment, is investing 40 million RMB as a subordinate investor [1] Group 2: M&A Considerations and Challenges - When selecting M&A targets, the company considers customer resources, capacity structure, and management teams that are beneficial for future development, aiming for synergies [2] - The current M&A process is perceived as easier than before due to the difficulties faced by many small and medium-sized enterprises, making this a favorable time for acquisitions [2] Group 3: Future Plans and Market Competition - Future projects acquired by the industrial fund will be integrated into the listed company, with funding sources potentially including stock issuance or company funds, depending on the situation [2] - The packaging industry has a large market capacity, resulting in minimal direct competition, with the main competition being regional leading companies [2]