Orders decreased sharply, large printing factories in Sichuan stopped printing production business

Orders decreased sharply, large printing factories in Sichuan stopped printing production business

A few days ago, Sichuan Jinshi Technology Co., Ltd. (hereinafter referred to as: Jinshi Technology) announced that it decided to stop the printing production business of its wholly-owned subsidiary Sichuan Jinshi Printing Co., Ltd. (hereinafter referred to as: Jinshi Printing) because Orders have dropped sharply, and there have been no new orders recently.

Due to the decrease in orders, Jinshi Technology decided to suspend the production of Jinshi Printing,life is like a box of chocolates

The predecessor of Jinshi Technology was Sichuan Jinshi Film Technology Co., Ltd., which was listed in March 2019. Goldtime Printing is the main wholly-owned subsidiary of Goldentime Technology, which specializes in serving large tobacco enterprise groups, providing supporting cigarette labels and other related products for their high-end cigarettes. In 2019, Jinshi Printing achieved a revenue of 569 million yuan and a net profit of 126 million yuan, accounting for 97.26% and 69.80% of Jinshi Technology’s total revenue and total profit, respectively.

Obviously, Golden Times Printing is the main revenue source of Golden Times Technology. Then, why did Golden Time Technology decide to stop production of Golden Time Printing? The reason is simple – there is no order.box of chocolates

In the announcement, Jinshi Technology stated that due to the influence of industry policies and market environment, orders for Jinshi Printing’s printing business have decreased sharply, and there have been no new orders recently. In order to avoid further losses in the future and protect the long-term interests of the company and its shareholders, the management of the company has decided to suspend production of Golden Time Printing after careful consideration.

As one of the subdivisions of the printing and packaging industry, the most notable feature of the tobacco label industry is its high profits and its heavy dependence on large customers. Generally speaking, a cigarette label company may have relatively few customers, but its order volume is very stable. If it loses a big customer, it will deal a heavy blow to the company.godiva chocolate box

According to the author’s understanding, since 2021, Jinshi Technology has issued a number of announcements on “Goldtime Printing Bidding Project Failed to Win the Bid”, including the March 2021 announcement-failed in the bidding of the two bidding products of China Tobacco Hunan. Winning the bid, announced in April 2022—not in the list of successful bidders in the bidding of China Tobacco related products in Anhui, announced in November 2022—failed to win the bid in the bidding for related products of China Tobacco Yunnan, etc.chocolate subscription box

In the case of losing major customers one after another, Kingtime Technology’s operating performance has declined year by year in the past two years. In 2021, Jinshi Technology will achieve a revenue of 368 million yuan and a net profit of 29.7743 million yuan; in 2022, Jinshi Technology is expected to achieve a revenue of 180 million to 190 million yuan, and the net profit attributable to the parent is expected to be a loss of 36 million to 37 million yuan. Yuan.forrest gump life is like a box of chocolates

Or will withdraw from the printing and packaging industry, where will Jinshi Technology go?

This time, Golden Time Technology has decided to suspend production of Golden Time Printing. In fact, it has already shown that the order situation of Golden Time Printing this year may be even worse, and its performance may not be able to improve. In the announcement, Jinshi Technology said frankly that as the company’s main source of operating income, with the suspension of production of Jinshi Printing, the company’s operating income in 2023 will drop significantly.candy box

At the same time, Jinshi Technology also stated that after the suspension of Jinshi Printing, the company plans to gradually dispose of inventory products, raw materials, equipment and other assets, and properly arrange relevant personnel. This also shows to a certain extent that Jinshi Technology may no longer engage in the cigarette label industry.valentine’s day chocolate box

If you contact other information, it can be speculated that Jinshi Technology will not only no longer engage in the cigarette label industry, but may even withdraw from the printing and packaging industry. “The implementation of the suspension of production will help avoid further losses in the future, and integrate resources to develop new industries.” Jinshi Technology said in this announcement.empty chocolate boxes

In fact, as early as 2021, shortly after failing to win the bid for Hunan China Tobacco’s bidding project, Jinshi Technology announced that it would establish a joint venture Sichuan Jinshi New Energy Technology Co., Ltd., whose main business is super capacitors. In September of the same year, Jinshi Technology also invested 25.5 million yuan to establish a joint venture Shenzhen Jinshi Material Technology Co., Ltd., which is mainly engaged in the manufacture and sales of optical glass.cake box

At present, market competition in the cigarette label industry is intensifying. In addition to established cigarette label companies, companies in other fields, such as Yutong Technology, have also invested a lot of resources in this business. For Jinshi Technology, which is currently operating unfavorably, it may not be impossible to give up “this difficult bone” and invest in other industries.valentine chocolate box