LFX plans to invest in the establishment of a gold refining subsidiary to expand the company's gold business

According to the announcement from Lao Feng Xiang (600612.SH), the company plans to apply through the Lao Feng Xiang Jewelry Research Institute to become a recognized refining enterprise by the Shanghai Gold Exchange, in accordance with the company's overall development strategy. This will involve engaging in old gold recycling and refining businesses. According to the latest "Management Measures for Recognized Refining Enterprises of the Shanghai Gold Exchange" released on July 10, 2025, the registered capital and net assets of refining enterprises must not be less than RMB 50 million, and they must have a gold bar refining plant that meets the certification standards of the Shanghai Gold Exchange and is qualified for gold delivery.

Therefore, to further improve the company's gold industry chain, expand its gold business, obtain qualifications for gold delivery to the Shanghai Gold Exchange, and achieve a closed-loop precious metals industry chain, the subsidiary Lao Feng Xiang Jewelry Research Institute plans to jointly invest with Cui Lv Co., Ltd. and Shanghai Xinpai, which have professional technical advantages and market scale, to establish Lao Feng Xiang Jingcai Company. This company will build a modern refining plant and supporting testing laboratory in Jinshan District, Shanghai, that meets national environmental protection standards and the certification standards of the Shanghai Gold Exchange, and will carry out related businesses. Lao Feng Xiang Jingcai Company will mainly produce gold bars that meet the certification standards of the Shanghai Gold Exchange and are qualified for gold delivery, and will also engage in related precious metal testing services. In the future, it plans to gradually expand into the refining business of precious metals such as platinum, palladium, rhodium, silver, and titanium, forming new production capacity and entering new industrial fields.

Through this project, the company aims to establish a research and production processing base for precious and rare metals within the Shanghai area, continuously promoting breakthroughs in new materials and new processes, filling the current gap in the precious metals industry in Shanghai in this field. At the same time, it will expand the company's gold business, providing key material support for jewelry manufacturing, enhancing the controllability of the supply chain and the added value of products, laying a foundation for providing high-end metal materials to multiple industries in the future, and achieving mutual benefit, win-win cooperation, and sustainable development among the three parties