Shanghai Shunho: NGP and Industrial Hemp Strategic Layout

Business by 2FIRSTS.ai
May.11.2024
Shanghai Shunho: NGP and Industrial Hemp Strategic Layout
Shanghai Shunho New Materials Technology Co., Ltd. held its 2023 annual performance briefing, focusing on financial reports and business strategies.

On May 10, Shanghai Shunho New Materials Technology Co., Ltd. (stock abbreviation: Shunho Stock, stock code: 002565) held its 2023 annual performance briefing. The briefing was conducted through the Shenzhen Stock Exchange's "Interactive Easy" platform, and included discussions on the company's 2023 financial report, introductions to its new tobacco and industrial hemp businesses, as well as its work in environmental protection and social responsibility.

Shanghai Shunho: NGP and Industrial Hemp Strategic Layout
Shanghai Shunho New Materials Technology Co., Ltd. Investor Relations Activity Record Form | Image Source: Shunho Corporation

 

In response to the adjustment of revenue from the new tobacco business, the company explained that the data in the 2023 interim report has not been audited. During the annual report audit process, in order to more accurately reflect the essence of the new tobacco business, the company will adjust the revenue recognition method from the "gross method" to the "net method," resulting in lower annual revenue compared to the revenue disclosed in the interim report. Shunho Corporation stated that the new tobacco and industrial hemp business are strategically important for the company's business layout, and the company will rigorously and carefully manage the production and operation of these related businesses.

 

In terms of expanding into overseas markets, the company has announced that its investments in Shenzhen Meizhonglian Technology Co., Ltd. and Shenzhen Lvxinfeng Technology Co., Ltd. have obtained relevant licenses. The products they are involved in include disposable e-cigarettes, e-cigarette accessories, pods, heating tobacco products, and others, primarily exporting to countries and regions such as North America, South America, the Middle East, Southeast Asia, the European Union, the United Kingdom, and Japan. 

 

The company has expressed confidence in the future development of the e-cigarette industry, emphasizing that as the inventor and owner of core technology patents, it has been deeply involved in the new tobacco industry for many years and has established a good complementarity and synergy in its domestic and international business layout. As of now, the company's subsidiary, Shenzhen Lvxinfeng Technology Co., Ltd., has obtained the Tobacco Monopoly Production Enterprise License for e-cigarette processing enterprises, while the invested company, Shenzhen Meizhonglian Technology Co., Ltd., has obtained the Tobacco Monopoly Production Enterprise License for e-cigarette product manufacturers. The company's subsidiary, Shanghai Shunho Yilong Electronic Technology Co., Ltd., has obtained the Tobacco Monopoly Production Enterprise License for e-cigarette brand holders for domestic sales.

 

The company can engage in new tobacco business in compliance with relevant regulations in the field, gradually highlighting the company's competitive advantages in production and technology. At the same time, the company is accelerating its overseas layout, rapidly expanding its domestic and international business to form a good situation of complementary advantages in advanced technology research and development applications, resource sharing, and collaborative operations, which has been beneficial for the company and shareholders in exploring and discovering value. In the future, the company will continue to improve the layout of the new tobacco industry chain in production, branding, contract processing, and export at home and abroad, leveraging industry development opportunities, fully leveraging its brand and production processing technology advantages, and striving to secure more market share for the company.

 

In response to investors' questions about profits and research investment, the company stated that they remain optimistic about the development prospects of the biotechnology and health industry, and are closely monitoring the application and development of CBD in areas such as pharmaceuticals, pain management, mental health, health supplements, and daily chemical products.

 

The company stated that it will continue to leverage its technological and production advantages in the fields of new tobacco and industrial hemp, striving to gain more market share as the legalization of industrial hemp rapidly advances in multiple countries around the world. The global market for industrial hemp is further opening up and expanding in industrial applications. As the inventor and owner of core technology patents for new tobacco products, the company established itself early in the industry with strong technological and production advantages. In the future, the company will continuously improve its layout in the domestic and international production, branding, contract manufacturing, and export industries of new tobacco, seizing opportunities for industrial development to fully utilize its brand and production processing technology advantages, and work hard to gain more market share for the company.

 

Regarding ESG ratings, the company stated that it has always placed high importance on environmental protection and social responsibility. It has released a "Social Responsibility Report" for 11 consecutive years and has pledged to continue to focus on and enhance environmental protection and information disclosure efforts.

 

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