1. Industrial environment: The packaging industry market continues to grow, and policies promote the green and environmentally friendly development of the industry

   In 2021, the cumulative operating income of enterprises above designated size in my country's packaging industry will reach 1,204.181 billion yuan, a year-on-year increase of 16.39%; the industry's cumulative total profit will reach 71.056 billion yuan, a year-on-year increase of 13.52%. At the same time, "Opinions of the Ministry of Ecology and Environment of the National Development and Reform Commission on Further Strengthening Plastic Pollution Control", "Notice of the General Office of the Ministry of Commerce on Promoting the Green Development of E-Commerce Enterprises", "Guidance of the State Council on Accelerating the Establishment and Improvement of a Green, Low-Carbon and Circular Development Economic System Policies such as "Opinions" propose that by the end of 2025, the use of non-degradable plastic packaging bags, plastic tapes, and disposable plastic woven bags will be prohibited in postal express outlets across the country.

   2. Industry status quo: market demand is expanding, and industry profits have increased significantly

   In 2021, my country's plastic packaging industry subdivides the plastic film market, plastic packaging box and container market with cumulative operating income of 351.468 billion yuan and 185.834 billion yuan respectively, with a year-on-year change rate of 18.43% and 15.43% respectively; the cumulative operating profit of the subdivided market The total amount was 24.947 billion yuan and 11.245 billion yuan respectively, and the year-on-year change rates were 29.77% and 9.01% respectively. With the advent of the domestic post-epidemic era, the production of beverage, food, catering, pharmaceutical and other industries has gradually resumed, and the demand for plastic packaging in the market has continued to grow, and the market size of my country's plastic packaging industry has been able to accelerate expansion.

   3. Enterprise analysis: Jiaheng Jiahua’s business operation is improving, and the company’s products are in urgent need of transformation and development

   From January to June 2022, the operating income of the plastic packaging business of Great Southeast, Prince New Materials, and Jiaheng Jiahua will be 838 million yuan, 628 million yuan, and 202 million yuan, respectively, with a year-on-year change rate of 6.44%, -6.07%, and 7.89%; business gross profit margins were 15.37%, 17%, and 27.67%. In comparison, among the three companies, Jiaheng Jiahua’s business operation is better. In the first half of 2022, the revenue of the plastic packaging business of Dadongnan and Wangzi New Materials will decline. decline. Judging from the business operations of Dadongnan, Prince New Materials, and Jiaheng Jiahua in recent years, the overall market demand for my country's plastic packaging industry has shown an upward trend, but affected by policy factors, the overall growth rate of the industry has declined, and market competition is fierce. Transformation and development, such as the Great Southeast Plan to accelerate the research and development and application of new material business of the enterprise.

   4. Development trend: degradable plastic packaging has become a trend, and corporate R&D investment continues to increase

   Traditional packaging plastic materials mainly include polyethylene (PE), polypropylene (PP), polystyrene (PS), polyvinyl chloride (PVC), ethylene-vinyl acetate copolymer (EVA), polyethylene terephthalate Alcohol ester (PET) and other non-degradable materials, but with the continuous development of social economy and continuous changes in the global environment, consumers' demands for environmental protection and conservation of product packaging are increasing, and traditional plastic packaging materials can no longer meet market demand. At the same time, The implementation of domestic environmental protection, green, and degradable plastic policies will continue to promote the green and environmentally friendly development of China's plastic packaging industry. The application of degradable packaging plastics will become a major trend in the development of the industry. Domestic companies continue to increase investment in product research and development, and promote enterprises to achieve green Environmental protection and low-carbon development, such as Jiaheng Jiahua's green packaging-related research and development projects.