LFX(SH:600612) Zheng Quan Shi Bao Wang·2025-10-22 11:47Core Viewpoint - The company, Lao Feng Xiang, is facing scrutiny from the Shanghai Stock Exchange regarding its acquisition plan to expand into the luxury goods sector, particularly due to the high premium associated with a company that has not yet commenced operations [1][2]. Group 1: Acquisition Details - Lao Feng Xiang plans to invest $24 million to acquire 20% of the voting shares in Maybach Luxury Goods Asia Pacific Limited (MAP), which is a luxury goods entity not directly involved with Maybach automobiles [1]. - MAP was established in February 2025 and has not yet started operations, raising concerns about its valuation, which is assessed at $126 million, reflecting a significant premium over its book value of $1,300 [2]. Group 2: Market Potential and Risks - The company anticipates developing the high-end luxury goods market in the Asia Pacific region through this partnership, leveraging its resources in mid-to-high-end and customized products [1]. - Lao Feng Xiang has outlined a growth plan for MAP from 2025 to 2030, aiming to open approximately 75 stores through agents, with a projected gross margin of 60% for new product lines [2]. - The company has acknowledged the risk of not obtaining the distribution authorization for the Maybach brand, which is a condition for the completion of the transaction [2]. Group 3: Regulatory Concerns and Risk Warnings - The Shanghai Stock Exchange has raised three questions regarding the high valuation of the transaction, given that MAP has no historical operating performance [2]. - Lao Feng Xiang has issued eight risk warnings, highlighting challenges in brand recognition, market competition, and the uncertainty surrounding the luxury goods business expansion [3].