(Yicai Global) Aug. 30 -- Leading Chinese snack food chain Shanghai Laiyifen Co. [SHA:603777] plans to invest USD1.52 million (CNY10 million) to establish a culture and media subsidiary in a bid to promote its brand culture.

The public company will set up the new subsidiary in Ningbo in East China's Zhejiang​ province with its own funds, it said in a statement yesterday.

Businesses operated by the firm will include movie and television program production, merchandising and toy and souvenir retail.

The Chinese government has rolled out many new incentive policies for media and culture businesses in recent years. By setting up its subsidiary, Laiyifen aims to boost its brand image by producing cartoons based on the company logo, creating synergies between its core businesses and media and entertainment operations to drive business growth.

The firm has developed an entertainment-oriented marketing model tailored to young consumers in the past few years. It kicked off a partnership with Walt Disney (China) and launched snack products featuring Walt Disney's cartoon characters last year. It also became the title sponsor of several popular Chinese TV shows, which has proven effective in raising its brand awareness among young fashion-conscious consumers.

As one of the largest snack food chain brands in the country, Shanghai Laiyifen listed on the Shanghai Stock Exchange last October, China's first initial public offering by a snack food company, public information shows.