CHINA FEIHE (06186.HK) announced on July 28, 2026, that its wholly-owned subsidiary, Heilongjiang Feihe, has entered into a sale and purchase agreement with Heilongjiang Tengfei to acquire the land use rights of certain properties for a total consideration of RMB 28.4 million (including tax).
The target of the transaction involves the land use rights of two parcels situated in Qingxiang Street, Kedong Town, Qiqihar City, Heilongjiang Province, covering a total area of 62,735.01 square meters. The properties include a factory and various ancillary facilities built on the land. The factory is a partially two-story production building with a total gross floor area of approximately 6,014.96 square meters, while the ancillary facilities primarily consist of walls and roads.
The board of directors believes this acquisition represents an opportunity to support the group's business expansion and enhance long-term operational efficiency. The properties are adjacent to the group's existing production facilities in Heilongjiang Province. This proximity is expected to streamline the group's production, warehousing, and delivery processes, shorten internal logistics routes, and reduce overall transportation costs.
As a result, this acquisition will help the group expand its production and storage operations, further strengthening synergies among its existing facilities and resources in Heilongjiang Province. Additionally, the properties are well-suited for the group's intended use. The existing factory building, utility networks, and related infrastructure, including fire safety facilities, are largely completed and in good condition.
Since interior renovations and necessary production equipment are already in place, the company anticipates no significant additional capital expenditure for renovations, infrastructure work, or equipment installation before the properties are put into use. This ready-to-operate status will allow the group to quickly deploy the properties.
Through this acquisition, the group can secure a stable location for its business operations, thereby reducing risks associated with lease renewals, rental fluctuations, and potential relocation disruptions. This stability is expected to enhance the group's long-term operational planning capabilities.
Comments