Summary of the report: Summary of the incident: The company plans to raise no more than 517 million yuan through non-public offerings, of which 155 million yuan will be used to supplement working capital, and the rest will be used to invest in the construction of new three-dimensional free-form environmentally friendly packaging and microstructured optical packaging materials construction projects. Traditional vacuum aluminized paper is under pressure to grow, and is actively aiming to increase the size of the new packaging business. The company's traditional business is vacuum aluminized paper and cigarette label printing. The leading position in the industry is stable, but due to the influence of the national tobacco control policy, downstream tobacco demand is sluggish, and revenue is under pressure to grow. Therefore, on the basis of existing advantageous business, the company is actively developing new markets. New businesses such as cloud printing and e-cigarettes have already begun to contribute to revenue, and the new packaging materials business to be invested and built this time is an important measure for the company to further enrich its product structure and increase profitability. The new packaging materials have obvious advantages in environmental protection, practicality and anti-counterfeiting, and the market prospects are promising. Demand in the FMCG packaging market is moving towards quality and environmental protection upgrades. Compared with current plastic and metal product packaging, the new three-dimensional free-form environmentally friendly packaging not only has diversified packaging forms and strong plasticity, but also meets food-grade packaging standards. It has obvious advantages in environmental protection, anti-counterfeiting, cost and practicality, and is optimistic about the market prospects of this product. The raw materials and smart devices required for the project were all provided by Swedish FTP, which granted the company exclusive sales rights in mainland China. The proposed name change and business scope are in line with strategic goals, reflecting that the company's transformation is already on the way. In addition to setting up new business, the company also announced that it plans to change the company name from “Shanghai Lvxin Packaging Materials Technology Co., Ltd.” to “Shanghai Shunhao New Material Technology Co., Ltd.”; at the same time, it plans to adjust the scope of business and add new wrapping paper and network technology development services. It is proposed to change the company's name and business scope to better match the advancement of the company's strategic goals and fully reflect that the company's transformation is already underway. Profit forecast and rating: The net profit growth rates for 2016-2018 are expected to be -10.43%, 50.53%, and 41.98%, respectively. EPS is 0.19,0.28 and 0.40 yuan respectively, giving a “buy” rating. Risk warning: tobacco control policies are becoming stricter; market expansion of new packaging materials falls short of expectations