China's Feihe (06186) plans to spend 28.4 million yuan to acquire two plots of land located in Qiqihar City, Heilongjiang Province

According to the Zhitong Finance App, China Feihe (06186) issued an announcement. On July 28, 2026, Heilongjiang Feihe (a wholly-owned subsidiary of the Company) signed a sales agreement with Heilongjiang Tengfei. Heilongjiang Tengfei agreed to sell and Heilongjiang Feihe agreed to acquire the property's land use rights at a consideration of RMB 28.4 million (tax included).

The goal of the sale agreement is the property's land use rights. The property includes two plots of land located in Qingxiang Street, Kedong Town, Qiqihar City, Heilongjiang Province, China, with a total area of 62,735.01 square meters, and a factory and various ancillary facilities built on it. Among them, the factory is a partial two-story production plant with a total construction area of about 6,014.96 square meters, and ancillary facilities mainly include walls and roads.

The Board believes that this acquisition is an opportunity to support the Group's business expansion and enhance long-term operational efficiency. The property is adjacent to the Group's existing production facilities in Heilongjiang Province. This proximity advantage is expected to simplify the Group's production, warehousing and delivery processes, shorten internal logistics routes, and reduce overall transportation costs. Therefore, the acquisition will help the Group expand the scale of production and warehousing operations and further enhance the synergy between its existing facilities and resources in Heilongjiang Province.

Furthermore, the property is ideal for the Group's intended use. The existing plant building, utility network and related infrastructure (including fire safety facilities) have been largely completed and are in good condition. Since interior decoration and necessary production equipment are also generally in place, the company expects no significant additional capital expenses for renovation, infrastructure work or equipment installation before the property is put into use. This ready-to-use operating status will enable the Group to rapidly deploy properties.

Through this acquisition, the Group can secure a stable location for its business operations, thereby reducing the risks associated with lease renewals, rent fluctuations and potential relocation disruptions. This stability will enhance the Group's ability to plan long-term operations.