Beijing Shengtong Printing (SZ:002599)2022-12-06 23:40Group 1: Company Strategy and Development - The company has strategically chosen to enter the education sector after extensive planning and consideration, aiming to leverage its established relationships with well-known publishers to create synergies with its main business [2][3] - The company anticipates stable growth in its main business over the next few years, having adjusted its production capacity to increase the proportion of children's books and educational materials [3] Group 2: Cloud Printing and Platform Projects - The cloud printing service is designed to provide rapid online printing services, primarily targeting small businesses and individuals, while the cloud platform project aims to connect various stakeholders in the publishing industry through a comprehensive service platform [3][4] - The cloud printing focuses on commercial printing, whereas the cloud platform extends to the entire publishing industry supply chain, enhancing information, logistics, and financial flows [4] Group 3: Financial and Operational Insights - The rental cost for Lebo stores in first-tier cities ranges from 200,000 to 300,000 CNY, with a focus on cost-effective locations; the current corporate tax rate for the company is 15%, while Lebo's is 25%, pending a reduction to 15% upon successful high-tech enterprise qualification [4] - Lebo's franchise fee varies between 50,000 to 300,000 CNY depending on the city, with limited plans for future expansion of franchise stores [4] Group 4: Government Subsidies - In 2015, the subsidiary Shanghai Shengtong Times Printing Co., Ltd. received a government subsidy of 35 million CNY, which is being amortized over the expected useful life of the project assets; the company has also received over 7 million CNY in government subsidies to date [4]