In order to actively expand the industrial hemp business, according to the Company’s development strategy and the needs of its market layout, Luxin Packaging Resources Holding Co., Ltd., a wholly-owned subsidy of Shunho Stock, intends to establish a wholly-owned subsidiary LUXIN HEMP GROUP INC. in USA, planning to cooperate with overseas institutions of higher education and scientific research institutions in carrying out the research and application of cannabidiol (CBD) from industrial hemp in the fields including medical treatment, health care products and food, as well as the research and development of relevant products.
With the layout in the overseas market, it will expand relevant business.
On February 20, 2018,since the hemp whose content of tetrahydrocannabinol (THC) is less than 0.3% is removed from the “Controlled Substances Act” according to the American Farm Security and Rural Investment Act and the industrial hemp has been fully legalized all over the United States of America, so the application of cannabidiol (CBD) extracted from industrial hemp has broad prospects, and the demand for the hemp including cannabidiol (CBD) is still growing in the international market. According to Bright Field Group's forecast, the global cannabidiol (CBD) industry value will reach 5.7 billion US Dollars in 2019 and 18.1 billion US Dollars by 2021.
At present, many major companies from the traditional industries have been researching and exploring industrial hemp. The overseas subsidiary is planning to cooperate with overseas institutions of higher education and scientific research institutions in carrying out the research and application of cannabidiol (CBD) from industrial hemp in the fields including medical treatment, health care products and food, as well as the research and development of relevant products. Shunho Stock hopes to quickly make a layout in the overseas market, actively seek for international cooperation, expand the Company’s market share in the field of industrial hemp and enhance the Company’s competitiveness by establishing a subsidiary in USA.
The layout of Industrial hemp industry chain is orderly under way.
Before that, Shunho Stock has ever authorized its management layer to invest an industrial hemp project with the amount of less than RMB300 million, including but not limited to domestic and foreign investment, merger & acquisition, and upstream and downstream integration of the industry chain.
As early as January 16, Yunnan Luxin Biological Pharmaceutical Co., Ltd., a wholly-owned subsidiary of Shunho Stock. received the License of Industrial Hemp Cultivation in Yunnan Province from Qujing City Public Security Bureau of Yunnan Province Zhanyi District Branch. After obtaining the License of Industrial Hemp Cultivation in Yunnan Province, Yunnan Luxin will have the cultivation qualification of Yunnan No. 7 industrial hemp. In addition, Yunnan Luxin has also received the written reply to Yunnan Luxin’s applying for an industrial hemp leaves processing project.
On February 19, Shanghai Green Vaper Technology Co., Ltd., a holding subsidiary of Shunho Stock, signed a Cooperation Agreement with Yunnan Hansu Biotechnology Co., Ltd. and Hanma Investment Group Co., Ltd. Shanghai Green Vaper and Yunnan Hansu are planning to make joint investment in establishing a new company, exploring the market opportunity of basic materials formed after being extracted from industrial hemp leaves in the electronic bio-health products.
