Lao Feng Xiang subsidiary to establish Hong Kong investment platform

Lao Feng Xiang Co., Ltd. [SSE:600612] announced today that its holding subsidiary, Shanghai Lao Feng Xiang Co., Ltd., plans to establish a wholly-owned subsidiary in Hong Kong, named Lao Feng Xiang Hong Kong Co., Ltd. The new entity will be capitalized at USD 20 million. The primary goal is to create an overseas investment platform for global expansion. The initiative aims to optimize resource allocation, tap into brand potential, and cultivate international markets, creating a dual-circulation strategy between domestic and overseas markets. The Hong Kong subsidiary will engage in arts, crafts, jewelry, and trade, and its financial results will be consolidated into the parent's financial statements. The project remains subject to regulatory approvals in China and Hong Kong, and faces potential market and operational risks.