On 28 July 2026, China Feihe Limited disclosed that its wholly owned subsidiary Heilongjiang Feihe Dairy Co., Ltd. (Feihe HLJ) has signed a sale-and-purchase agreement to acquire the land-use rights of an industrial property in Kedong County, Qiqihar City, Heilongjiang Province from Heilongjiang Tengfei Food Co., Ltd. (HLJ Tengfei) for RMB28.40 million (tax inclusive).
The property comprises two parcels of land with a combined site area of 62,735.01 sq m and a partially two-storey production plant plus ancillary structures totaling 6,014.96 sq m of gross floor area. HLJ Tengfei originally obtained the land-use rights in December 2017 at a cost of about RMB10.10 million; the book value stood at roughly RMB24.40 million as at 30 June 2026. The asset generated rental income of RMB8.30 million in 2024, with net profit after tax of RMB0.44 million; it recorded no income in 2025 and 2026.
Consideration will be settled in cash from internal resources: • First instalment – RMB8.52 million within five business days after property delivery and joint confirmation of asset hand-over; • Second instalment – RMB19.88 million within five business days after completion of land-use right transfer registration and issuance of the new title certificate.
Jones Lang LaSalle Corporate Appraisal & Advisory Limited valued the property at RMB28.40 million as of 31 December 2025. The valuer adopted a cost approach, applying depreciated replacement cost for buildings and a comparison approach for the land element, using an assessed land unit price of RMB141 per square metre and depreciation rates of 10%–20% for buildings and structures.
HLJ Tengfei is substantially controlled by Mr. Leng Youbin, China Feihe’s executive director, chairman, chief executive officer and controlling shareholder. The transaction therefore constitutes a connected transaction under Chapter 14A of the Hong Kong Listing Rules. As the highest applicable percentage ratio exceeds 0.1% but is below 5%, the deal is subject to reporting, annual review and announcement requirements, but exempt from circular and independent shareholders’ approval. Mr. Leng abstained from the relevant board vote.
China Feihe expects the acquisition to enhance production, warehousing and logistics efficiency by leveraging the property’s proximity to its existing Heilongjiang facilities. The factory’s completed infrastructure and utilities are anticipated to enable rapid operational deployment with minimal additional capital expenditure, providing stable premises and reducing future rental or relocation risks.
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