However, behind the slight decline in revenue, the company is facing considerable pressure on its profitability.

Nevertheless, the company's operating income in the third quarter was acceptable at 162 million yuan, second only to the fourth quarter's 173 million yuan, demonstrating that the company still has certain capabilities in market expansion.

Looking ahead to 2025, Hongyu Baochai has proposed the strategic development direction of "strengthening scale, focusing on technology, expanding the market, and pursuing efficiency." The company will focus on high-value-added sectors, fully leverage the production advantages of its existing advanced equipment, and relying on the "Phase II Project of the Intelligent Factory for Producing 30,000 Tons of Health Product Packaging Materials per Year," actively promote the effectiveness of IPO projects and VOCs environmental protection equipment.

The project plans to have a total investment of 143 million yuan. As of February 28, 2025, 94.0738 million yuan has been invested, and the project progress has reached 78%. It is expected to bring new growth momentum to the company in the future.