WEIGAO GROUP (01066) has announced that on March 27, 2026, the company entered into a land use rights transfer agreement with Weigao Biology. Under the agreement, Weigao Biology will transfer the land use rights to the company for a consideration of RMB 39.7093 million. The land is located in Chucun Town, Weihai Torch High-Tech Industrial Development Zone, Shandong Province, China, west of Sanguanshan Road and south of Tongzhai Road. It bears the parcel number M1 and covers a total area of approximately 76,342 square meters. The land use rights are set to expire on April 14, 2070, and the land is designated solely for industrial use.
To address current production capacity constraints and enhance operational efficiency, the group commenced construction of an integrated sterilization and warehousing center in 2025. The newly acquired land is situated near the existing production base. The proposed acquisition of the land use rights is expected to facilitate a compact site layout and integrate the construction of sterilization, packaging, and high-density warehousing operations. This will help shorten internal logistics processes, improve asset utilization, and support the deployment of automated transfer and intelligent warehousing systems.
Upon completion of the expansion facilities, the group anticipates a significant increase in annual sterilization processing capacity and storage volume. The project is also expected to reduce processing cycle times, lower unit costs, and improve inventory turnover rates. These enhancements will support the group's medium to long-term production needs and contribute to value creation.
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