JIHONG CO (02603) saw its shares surge more than 8% during the trading session. As of the time of writing, the stock was up 6.88%, trading at HKD 14.44, with a turnover of HKD 20.45 million.

On January 12, the company announced that, in line with its 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 registered capital is set between HKD 60 million and HKD 80 million.

The announcement stated that this investment to establish a Shenzhen subsidiary is conducive to further improving the company's packaging business layout, aligning 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 domestic and international packaging production base R&D and design centers. This includes packaging material research and development, packaging solution design, process innovation, and technical support, aiming to achieve centralized management and efficient allocation of R&D resources.

This move is expected to shorten decision-making processes, improve the efficiency of converting R&D成果 into practical applications, and will play a positive role in promoting the expansion of the company's packaging business.