The company's plan for targeted issuance of A shares in 2020: The company issued an announcement that it will issue A ancient common stock shares to no more than 35 (inclusive) specific targets. The maximum number of shares raised is 469.589 million shares, and the total amount of capital raised will not exceed 601.6 million yuan (inclusive). After deducting related expenses, all of the capital raised this time will be used for a high-barrier composite material production line project with an annual output of 18,000 tons. The total investment of the project is 6316 million yuan. The company will first invest with self-financing, and will be implemented by Zhejiang Haishun New Materials Co., Ltd., a wholly-owned subsidiary of the company. The construction period is about 18 months. This release will not result in a change in the company's control. The new production capacity is expected to improve the company's service capacity and highlight the advantages of scale: under the national volume procurement policy, pharmaceutical companies' drug package orders have evolved from loose orders in the past to large-scale orders, and will also promote pharmaceutical packaging companies to large-scale production to reduce unit costs. The company is steadily advancing its production capacity layout. In this fixed increase project, it will build a cold stamping high barrier compatible hard film production line, recyclable high barrier materials, multi-layer co-extruded high-performance bottles/syringes, etc. Among them, cold aluminum products have always been the company's best products. They have absolute leading advantages in blocking water vapor, oxygen, and light insulation, and are widely used. This time, the company has further expanded its production capacity, which is expected to further utilize its advantages of scale to reduce costs and improve efficiency, increase the company's market share in the field of specialty products, and consolidate its competitiveness. High-end pharmaceutical packaging production capacity has increased, forming differentiated competition: China has introduced consistent evaluation and related audit requirements for pharmaceutical packaging materials. The quality of pharmaceutical packaging materials will directly affect drug audit results. Therefore, pharmaceutical companies will be more careful when selecting pharmaceutical packaging companies and packaging products, and prefer to choose high-quality products with good stability and safety. With its outstanding R&D capabilities, the company has won the trust and cooperation of many pharmaceutical companies. As of October 2020, the number of customers has reached about 2,000, including 70% of China's top 100 pharmaceutical companies or their subsidiaries, and has established a strong and in-depth cooperative relationship with customers based on consistency evaluation and related audit systems. The company's new production capacity layout will further develop its R&D capabilities and gradually transform it into a launched product. The multi-layer co-extruded high-performance bottles/syringes in this fund-raising project will break through the bottleneck of non-glass oral liquid and injection packaging in China. Their moisture resistance is comparable to glass, oxygen barrier properties are even superior to glass and other plastic containers, and this product can effectively solve the problem of glass bottles and other packaging during transportation. Moreover, its density is relatively lower, and transportation costs can be effectively reduced. High-end differentiated production capacity is expected to attract cooperation from more high-end pharmaceutical companies in the domestic market. The company is expected to continue to explore new customers and new markets, and further expand its business scale. The company's profit inflection point has reached, and it is expected to maintain a good state of development by being proactive: before the company went public, it experienced a stage where production capacity was overloaded and supply was in short supply, which led to too concentrated investment in production capacity in the later stages, and the company experienced a phenomenon where revenue growth did not increase profit. In Q2 2020, the company's profit inflection point was reached, the subsidiary's operating situation continued to improve, and the capacity utilization rate increased. This is a good time for the company to further lay out its layout. Investment advice: According to the company's new construction project announcement, considering the rising production capacity of Suzhou Haishun & Duoling Pharmaceutical Package and the gradual contribution of the Nanxun project to profits after 21 years, performance growth is expected to accelerate. We expect the company's net profit attributable to shareholders of listed companies in 20-22 to be 118 million yuan, 188 million yuan, and 263 million yuan respectively, increasing by 76.0%, 59.6%, and 39.7% respectively, maintaining the “buy-A” rating. Corresponding to the 2020-2022 PE is 37.3X/23.4X/16.7X yuan, respectively. Risk warning: The increase in concentration fell short of expectations, the profit status of the acquired company fell short of expectations, and the release of new Aclar Edge products fell short of expectations.