Shanghai Shunhao Transfers 45% Equity Of Qujing Fupai For 110 Million, Private Enterprises Continue To Exit The Cigarette Packaging Market!

On the evening of May 19, Shanghai Shunhao New Materials Technology Co., Ltd. (hereinafter referred to as "Shunhao Co., Ltd.") announced the transfer of part of its holding in a subsidiary. The announcement shows that on May 18, 2026, Shunhao Co., Ltd. held the 15th meeting of the sixth board of directors and decided to transfer 45% of the shares of its major cigarette packaging printing company, Qujing Fupai Color Printing Co., Ltd., to Yunnan Chengluo Enterprise Management Co., Ltd. for 111 million RMB. With this transaction exceeding one hundred million RMB completed, Shunhao Co., Ltd.'s holding in Qujing Fupai will be directly reduced from controlling to 34.4193%.

According to the official website of Qujing Fupai Color Printing Co., Ltd., the company was founded in March 1993 and is jointly invested and operated by Shanghai Shunhao New Materials Technology Co., Ltd., Yunnan Hehe Printing Management Co., Ltd., and Yunnan Luocheng Investment Co., Ltd. It specializes in printing cigarette trademarks for Hongyun Honghe Tobacco (Group) Co., Ltd., Hongta Tobacco (Group) Co., Ltd., Shanxi (Kunming) Cigarette Factory, Inner Mongolia (Kunming) Cigarette Factory, and Chongqing China Tobacco Industrial Co., Ltd. The main products include the Honghe Series, Yunyan Series, Hongtashan Series, Yuxi Series, and Tianzi (Gold) Series of cigarette trademarks. The company currently has an annual production capacity of 600,000 large boxes of cigarette trademarks.

Logically, as one of the core enterprises in the cigarette label printing supply chain, Qujing Fupai has been living quite comfortably in the past. However, the just-concluded year 2025 has become a "turning point" for the company. For the full year 2025, Qujing Fupai's operating revenue will be about 222 million yuan, a direct 27.59% decrease compared to 2024; Even worse was the profit statement: net profit for the year was about 30.2313 million yuan, a year-on-year drop of 43.47%, nearly halved.

Entering 2026, this downward trend has not stopped but is actually worsening. According to the latest disclosed data, in the first quarter of 2026, Qujing Fupai's revenue was only 27.4589 million yuan, with a net profit of 5.9072 million yuan. Judging from this set of operating data alone, the operating revenue in the first three months didn't even reach the 30 million yuan threshold, with both revenue and net profit experiencing another decline.

Whether it was reluctantly giving up or selling voluntarily, Shunhao Co., Ltd. chose to cash out 111 million yuan at this time and pocket it in time, which is somewhat reasonable. Let's zoom in and look at Shunhao Co., Ltd.'s overall fundamentals. Shunhao Co., Ltd.'s core business has always focused on the research, development, production, and sales of specialty eco-friendly paper and printed materials, as well as the deep processing of industrial hemp.

Many of the high-end vacuum aluminized paper, laminated paper, white card paper, and various optical anti-counterfeit films you see in the market come from their company. In 2025, Shunhao Co., Ltd. achieved an overall operating revenue of 1.188 billion yuan, a year-on-year decrease of 21.78%. Although revenue is shrinking, net profit attributable to shareholders actually reached 58.9397 million yuan, a year-on-year increase of 30%.

The fate of Qujing Fupai is actually a microcosm of the intense reshuffling in the domestic tobacco packaging and high-end printing market. By reviewing Shunhao Co., Ltd.'s 2025 annual report disclosed about its main subsidiaries and associates (impacting net profit by more than 10%), we find that the packaging and printing business in the Yunnan sector seems to be experiencing a storm.

For example, another invested company disclosed in Shunhao's 2025 financial report - Yunnan Yuxi Printing Co., Ltd. According to Tianyancha data, its shareholders include Shanghai Shunhao New Material Technology Co., Ltd. (33% stake), Qujing Fupai Color Printing Co., Ltd. (27%), and Dong Zhongren (8.1633%).

This printing company, which also produces and sells packaging printed materials, participated in Yunnan China Tobacco Industrial Co., Ltd.'s tobacco material procurement project in 2024-2025 and won multiple bids, but 2025 will also be tough. Annual report data shows the company's annual revenue was about 165 million yuan, a year-on-year decrease of 25.84%; Net profit was about 37.4602 million yuan, down 27.33% year-on-year.

However, amid the bleakness, there is also a single bright spot. Another company in which Shunhao Co., Ltd. holds a stake, Yunnan Yuxi Printing Co., Ltd., which also holds a 37.5% stake, is Yuxi Global Color Printing Box Co., Ltd., which will achieve a breakthrough against the trend in 2025. The company's annual revenue was about 144 million yuan, compared to about 139 million yuan in the same period of 2024; net profit was about 27.7953 million yuan, with both operating revenue and net profit achieving year-on-year growth.

Yuxi Global Color Printing Carton Co., Ltd. is also a highly specialized cigarette packaging supporting manufacturer, with an annual production capacity of 800,000 large boxes of cigarette packaging labels. It mainly provides products and services to Yunnan China Tobacco Industrial Co., Ltd., Guizhou China Tobacco Industrial Co., Ltd., and others.

Looking back at Shunhao Co., Ltd.'s move to transfer its Qujing Fupai equity, this is by no means an isolated equity transfer. Looking at the industry, it is yet another example of private printing giants accelerating their withdrawal from the cigarette label sector in recent years to seek strategic breakthroughs.

Looking at the domestic packaging and printing market in recent years, the cigarette label sector, once seen as the industry's "profit ceiling," is now being strategically abandoned or transformed by more private capital. Against this industry backdrop, Shunhao Co., Ltd. downgraded Qujing Fupai from "holding" to "equity participation," following the same logic as Dongfeng and Jinjia. It is not impossible for Shunhao Co., Ltd. to gradually transfer shares in Yunnan Yuxi Printing and Yuxi Global Color Printing in the future.