NISSIN FOODS (01475) announced that on September 10, 2025, the company successfully won the bid for land use rights of two plots through public tender via its wholly-owned subsidiary in China, with a total consideration of RMB 30.68 million.
Both plots are located in Jinwan District, Zhuhai City, Guangdong Province, China, and were publicly offered by the Zhuhai Natural Resources Bureau through online listing. The company expects to enter into a state-owned construction land use right grant contract with the Zhuhai Natural Resources Bureau by September 23, 2025.
The plots are adjacent to Zhuhai Nissin and will be used by the group to construct new production facilities. According to the announcement, the group adheres to its premium strategy and continues to expand the geographical scope of its China business. Additionally, in response to the evolving preferences of Chinese consumers, the group's business focus is on providing high-quality and reasonably priced food products to meet consumers' growing demands for health, safety, and value for money.
The group plans to build a new facility featuring factory automation and efficient production processes to enhance its production capacity. The group plans to invest over RMB 240 million to acquire the plots and construct new factory buildings and install new production lines on these sites.
Considering the shortage of industrial land in the Zhuhai region, the group believes that the acquired plots, which are adjacent to the Zhuhai Nissin packaging production facility that commenced operations in 2021, represent an ideal location for building new production facilities.
The new automated facility will reduce unit production costs by improving operational efficiency, reducing downtime, and optimizing resource utilization. Furthermore, this expansion is crucial for ensuring stable supply and addressing anticipated increases in product sales volume.
By establishing a larger and more technologically advanced production base, the expansion is expected to make a positive contribution to the group's operational development and growth prospects in the long term, thereby enhancing the group's overall revenue and profitability.