LFX(SH:600612) Shang Hai Zheng Quan Bao·2025-10-22 19:53Core Viewpoint - The company, Lao Feng Xiang, is expanding into the luxury goods market through an investment in Maybach Luxury Asia Pacific Co. Limited, aiming to leverage its existing high-end product capabilities and explore new market opportunities in the Asia-Pacific region [6][7][10]. Investment Purpose and Strategy - The investment aims to jointly develop the high-end luxury goods market in the Asia-Pacific region, integrating the company's existing high-end and customized product resources to enrich its product system [6][7]. - The company plans to leverage the operational models of luxury brands to enhance its capabilities in high-end product investment and management [10][13]. Operational Structure and Governance - After the investment, the company will appoint one director to the board of Maybach Luxury Asia Pacific and will not be involved in daily operations, focusing instead on oversight of capital and budget control [8][10]. - The governance structure includes protective clauses for shareholder voting rights and financial oversight to safeguard the company's investment interests [8][9]. Market Risks and Challenges - The luxury goods sector is a new area for the company, which may face challenges in brand recognition, market penetration, pricing strategies, and consumer acceptance [2][10]. - There are risks associated with operational integration, market competition, and the cyclical nature of the luxury goods industry, which could impact the company's performance [2][11]. Financial Projections and Valuation - The investment is based on a valuation of $12 million post-investment, with a projected annual compound growth rate of 36.5% for the luxury goods sector [16][19]. - The company has conducted due diligence and valuation assessments to ensure the investment's feasibility and alignment with market expectations [25][28]. Brand and Trademark Considerations - The investment is contingent upon obtaining the necessary trademark licenses from Mercedes-Benz Group AG, which currently only authorizes operations within mainland China [43][44]. - The company must navigate potential obstacles in securing these licenses before the investment agreement's expiration date in March 2026 [43][44].