Xiamen Jihong Co.,Ltd. (02603) announced that, in line with the company's strategic development plan, its wholly-owned subsidiary Hong Kong Zhuque International Limited intends to use its own funds to establish a wholly-owned subsidiary in Shenzhen, tentatively named Shenzhen Jihong Packaging Co., Ltd. The final name is subject to the approval of the market supervision authorities. The registered capital is set between HKD 60 million and HKD 80 million.

The primary business scope will include: printing of packaging and decoration materials; production of paper packaging and container products for food (projects requiring approval can only be commenced after approval by relevant departments, specific business items are subject to the final approval results); manufacturing of paper and paperboard containers; manufacturing of paper products; sales of paper products; sales of packaging materials and products; design and printing of commodity trademarks (including tobacco and pharmaceutical trademarks); packaging services; graphic design; professional design services; technical services, development, consulting, exchange, transfer, and promotion; import and export of goods; import and export of technologies. (The above information is tentative and subject to final approval and registration by the market supervision authorities).

This outward investment to establish a Shenzhen subsidiary is conducive to further improving the company's packaging business layout and aligns with its overall development strategy and practical operational needs. Beyond production and sales, the Shenzhen subsidiary will also be responsible for the primary work of the company's research and development design centers for domestic and international packaging production bases. This includes research and development of packaging materials, packaging solution design, process innovation, and technical support.

The establishment aims to achieve centralized management and efficient allocation of R&D resources, which is expected to shorten decision-making processes and improve the efficiency of converting R&D成果 into practical applications. This move is anticipated to have a positive driving effect on the expansion of the company's packaging business.