Lao Feng Xiang consolidates subsidiary equity, streamlines corporate structure

Lao Feng Xiang Co., Ltd. announced the completion of an internal equity transfer, moving 20.50% equity of Shanghai Lao Feng Xiang Limited from its wholly-owned subsidiary, China First Pencil Co., Ltd., to the parent company. This transaction, approved by the board of directors on January 17, 2025, raised the company's direct equity stake in Shanghai Lao Feng Xiang Limited from 57.51% to 78.01%, while the overall effective ownership remained unchanged at 78.01%.

The transfer was finalized with the completion of change registration procedures on November 27, 2025, as confirmed by a registration notice from the Huangpu District Market Supervision and Administration Bureau of Shanghai. Post-transfer, Lao Feng Xiang Co., Ltd. holds a 78.01% equity stake in Shanghai Lao Feng Xiang Limited, representing a paid-in capital of CNY 15,984.0000.

This equity transfer is a non-cash, internal resource consolidation aimed at reducing cross-shareholdings among subsidiaries and improving management efficiency. The company emphasized that the transaction will not impact its consolidated financial statements or operations, nor will it harm the interests of shareholders.