Jia Yao (HKG:1626) has launched a cannabidiol business focused on procurement and export, according to a Tuesday Hong Kong bourse filing.

Shares of the paper cigarette packaging supplier were up over 11% in Wednesday morning trade.

Jia Yao said it has obtained the necessary licenses for the business, including permits related to non-drug precursor chemicals and dual-use export items, allowing it to operate legally.

The company said the business is at an early stage but has already secured trade contracts and generated initial revenue.

Jia Yao plans to expand into downstream products such as beauty, personal care, and pet healthcare, while exploring research and development partnerships.