EASTROC (09980) has announced the signing of an "Investment Agreement" with the Chengdu Wenjiang High-Tech Industrial Park Management Committee. The company has established a wholly-owned subsidiary, Chengdu Eastroc Vitamin Beverage Co., Ltd. (referred to as the "Chengdu Facility"), to oversee the construction and operational management of the "EASTROC Chengdu Production Base Project."

Recently, the Chengdu Facility entered into a "State-owned Construction Land Use Right Transfer Contract" with the Chengdu Wenjiang District Planning and Natural Resources Bureau. The land parcel is located in the Guangming Community, Groups 1, 3, and 4, Jinma Subdistrict, and Kangquan Community, Group 9, Yongquan Subdistrict, Wenjiang District, Chengdu.

Securing the aforementioned land use rights is conducive to the smooth advancement of the "EASTROC Group Chengdu Production Base Project." It enables the company to leverage the geographical advantages and policy support of the project location, thereby enhancing its core competitiveness and industry influence, which aligns with the company's development strategy.

Upon completion, this project is expected to further improve the company's market coverage and supply responsiveness in the southwestern and northwestern regions of China. It will effectively shorten logistics distances, reduce transportation costs, and enhance supply chain coordination efficiency and regional service support capabilities. The construction and operation of this base are anticipated to positively impact the company's overall operational efficiency and market competitiveness.

The funds for the wholly-owned subsidiary to acquire the land use rights are sourced from the company's internal capital. This transaction does not affect the normal conduct of the company's existing business operations and is not expected to have a material impact on its financial or operational condition. There is no situation that would harm the interests of the company or its shareholders.