Shunho股份新型烟草方向发展规划说明

On October 29th, an investor asked Shunho Corporation (002565) on an interactive platform about the company's technological reserves in the new tobacco direction. The investor noted that the actual annual revenue in this area is very small compared to expectations, and asked about the company's further planning in the new tobacco direction and how they plan to expand and strengthen related businesses. The investor also inquired about the current operating situation of Green E-Cigarette Technology, a joint venture between Shunho Corporation and Dongfeng Group, and whether there is potential for further collaboration. The investor raised the possibility of merging the two Hong Kong-listed companies involved in tobacco packaging and asked about Shunho Corporation's views and expectations on mergers and restructuring.

In response, Shunho Corporation stated:

The company is expanding its business in the new tobacco product sector through wholly-owned, controlling, and equity-participating companies, forming an industrial system. Currently, the company's controlling subsidiary Shenzhen Green Fresh has obtained the "Tobacco Monopoly Production Enterprise License" for e-cigarette OEM enterprises, while the equity-participating subsidiary Meizhonglian has obtained the "Tobacco Monopoly Production Enterprise License" for e-cigarette product manufacturers, and the company's wholly-owned subsidiary Shunho Yilong has obtained the "Tobacco Monopoly Production Enterprise License" for e-cigarette brand holders for domestic sales. Its "Yilong" brand e-cigarettes have successfully entered some retail stores in Beijing, Shenzhen, and Shanghai. The acquisition of the relevant licenses has further promoted the company's compliance layout in the new tobacco industry. In the future, the company will focus its efforts domestically, promoting the listing and sales of its e-cigarette brand "Yilong," actively seeking and strengthening cooperation opportunities with China Tobacco customers. On the other hand, it will also vigorously promote overseas processing and export business, establish a sound overseas sales network, and continuously explore overseas development and operation models.

The company currently holds a 60% stake in Shanghai Lvxin Electronic Technology Co., Ltd., with the remaining 40% owned by Guangdong Dongfeng New Materials Group Co., Ltd. The company is actively engaged in research and development, production, and branding of new tobacco products domestically and internationally. The company's controlling subsidiary, Shanghai Lvxin, serves as the main entity and platform for the implementation of new tobacco product-related businesses. Currently, Shanghai Lvxin Electronic is operating normally, and specific data related to its operations and strategic planning can be found in the company's relevant periodic reports.

The company pays close attention to the relevant policies issued by the government and actively monitors and studies the trends of these policies. The company always prioritizes the protection of the legitimate rights and interests of all shareholders, upholding an attitude of open cooperation for mutual benefit. In the future, the company will make strategic plans and layouts based on actual situations, industry characteristics, and market demands, continuously monitoring market opportunities and promoting high-quality development through appropriate capital operations. In the event of major events such as mergers and reorganizations, the company will fulfill its disclosure obligations in a timely manner in accordance with relevant regulations.