According to reports, 5100 XIZANG (01115) climbed more than 6% before the midday break, and as of the latest update was up 5% at HK$0.525, with turnover of HK$3.0424 million.

On the news front, on September 28, 5100 XIZANG issued an announcement regarding the acquisition of the target company, which involved the issuance of consideration shares under a general mandate. The board is pleased to announce that the acquisition of Nyanqin Tanggula Investment Co., Ltd. (the target company) has been completed.

Following completion, the target company and the China company have become wholly owned subsidiaries of the company, and the company has allotted and issued 380 million consideration shares to the seller, representing approximately 6.32% of the company's issued share capital as enlarged by the consideration shares.

It is understood that the China company has obtained water extraction rights for a water source in Shannan, Tibet, China. It is a base for maternal and infant-specific water uniquely suited for mixing infant formula, a resource that is rare in Tibet and even across all of China, with an annual water extraction volume of up to 400,000 tonnes.

The successful acquisition of this unique water source base will open up a distinctive market for healthy infant growth for the company, deliver strong social and economic benefits, and bring very positive and encouraging results.

The water source is expected to significantly enhance the group's overall production capacity and enable the group to expand into new sales channels.