Roopskin Plans to Establish Vietnam Subsidiary with $6 Million Investment to Expand Overseas Market Layout

Securities Daily Reporter Chen Hong

On the evening of March 12, Zhongyifeng Luopsing Material Technology Co., Ltd. (hereinafter referred to as “Luopsing”) announced that the company plans to invest up to USD 6 million using its own funds through its wholly-owned Singapore subsidiary ZYF LOPSKING OVERSEAS PTE. LTD. (hereinafter “Luopsing Singapore”) to establish a wholly-owned subsidiary in Vietnam, LPSK NEW ENERGY MATERIALS (VIETNAM) CO., LTD. (hereinafter “Vietnam New Energy”). The actual investment amount will be subject to approval by Chinese and local authorities.

According to the information, Vietnam New Energy is a limited liability company engaged in metal material manufacturing, metal sales, door and window manufacturing and processing, door and window sales, building decorative material sales, building metal fittings sales, import and export of goods, technology import and export, and import-export agency. The announcement clarifies that this external investment has been approved by the company’s board of directors, does not require shareholder approval, involves no related-party transactions, and does not constitute a major asset restructuring of the listed company.

Luopsing stated: “This external investment will help the company improve its international business layout, enhance global supporting production capacity, and increase responsiveness and operational efficiency in overseas markets. It aligns with the company’s long-term strategic development plan and will further strengthen its comprehensive competitiveness and sustainable growth momentum. The funds for this investment come from the company’s own resources. The project is still in the planning stage and will not have a significant impact on the company’s financial position or operating results in the short term.”

According to Securities Daily, Luopsing has large-scale, advanced aluminum extrusion production lines and a professional R&D team. Its aluminum business covers aluminum profiles and door and window products. After more than 30 years of development, the company has accumulated over a thousand patents and has established a certain reputation and brand effect in the fields of architectural aluminum profiles and building doors and windows. In recent years, the company has continued to expand overseas. In July 2025, the company approved the establishment of Luopsing Singapore, which completed registration in August of the same year. The establishment of the Vietnam subsidiary is a further step in its overseas expansion.

Zhang Xiaorong, Director of the Deep Technology Research Institute, told Securities Daily: “Luopsing’s layout in Vietnam is a key move for domestic manufacturing companies to optimize global capacity based on Southeast Asian regional advantages. Vietnam, as a core manufacturing hub in Southeast Asia, offers advantages in labor costs and trade zone location. It can serve the ASEAN market directly and benefit from relevant agreements to reduce tariffs on exports to Europe and America. This aligns precisely with the company’s needs to expand overseas orders and improve global supporting services, as well as to upgrade from product exports to local capacity deployment.”

“Currently, competition in China’s aluminum profile industry is intense, with traditional demand for architectural profiles stabilizing. Meanwhile, overseas demand for new energy supporting profiles continues to grow, marking a critical period for global capacity restructuring in the industry. Luopsing, leveraging its technology, capacity, and brand advantages, can effectively tap into overseas markets for new energy and construction industries, alleviating domestic competition pressure. It also brings the company closer to end markets, enhancing its influence in the international industrial chain, and provides practical reference for the international development of small and medium-sized enterprises in the industry,” said Yu Fenghui, senior researcher at Pangu Think Tank (Beijing) Information Consulting Co., Ltd., to Securities Daily.

It should be noted that this investment still requires approval or filing with relevant domestic and foreign government authorities, and the approval process and results are uncertain. Additionally, Vietnam’s legal system, policies, and business environment differ from those in China, and the investment may face legal, market, and operational risks. Whether the expected results can be achieved remains unknown. Luopsing stated that it will actively promote the approval process, communicate proactively with relevant departments, and strive to complete approvals, filings, and registration as soon as possible.

Yu Fenghui further commented: “Investing with self-owned funds allows for controlled investment scale and avoids impacting the company’s domestic cash flow. Cross-border investment through the Singapore subsidiary can leverage the local mature trade and service system to reduce operational costs and create effective risk isolation. However, the key challenge for the company moving forward is local operational adaptation. It is necessary to deeply study Vietnam’s industrial policies, labor rules, and supply chain systems, build a localized operational team, and establish a regular market and policy analysis mechanism. Only by deeply integrating domestic technological capacity advantages with Vietnam’s geographical advantages can overseas capacity deployment be transformed into a sustainable core competitiveness for the company.”