LFX(SH:600612) Zheng Quan Shi Bao·2025-10-22 17:22Core 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 a 20% stake in Maybach Luxury Goods Asia Pacific Limited (MAP), which is associated with the well-known luxury car brand Maybach, but focuses solely on luxury goods [1]. - MAP was established in February 2025 and has not yet started operations, raising concerns about its valuation, which is assessed at $12.6 million, reflecting a significant premium over its book value of $1,300 [2]. Group 2: Financial Projections - The company provided forecasts indicating that MAP aims to open approximately 75 stores from 2025 to 2030, with a gross margin of 60% for new product lines and a procurement cost of 30% of the retail price for existing products [2]. Group 3: Risks and Challenges - Lao Feng Xiang acknowledged the risk of not obtaining the Maybach brand distribution authorization, which is a condition for the completion of the transaction [3]. - The company outlined eight risk factors, including challenges in brand recognition, market competition, and the uncertainty of developing its luxury goods business in a new market [3].