Eastroc Beverage (605499.SH) plans to invest 1.2 billion yuan to build a production base project in Hainan to meet the future sales demand in the Hainan and Southeast Asia region.

Eastroc Beverage (605499.SH) announced that, according to the company's overall business development strategy, the company plans to sign an "Investment Agreement" with the Management Committee of Haikou National High-tech Industrial Development Zone for the investment project "Eastroc Beverage Group's Hainan Production Base Project". To this end, the company plans to register and establish Hainan Dongpeng Food and Beverage Co., Ltd. in Haikou National High-tech Industrial Development Zone (tentative, subject to final business registration), with a registered capital of 100 million RMB, specifically responsible for promoting and implementing the investment project, with funding sources from its own or self-raised funds. It is reported that the total investment of the project is 1.2 billion RMB, and the project is expected to be completed within 24 months after the start of construction, with production to commence within 6 months after completion. By establishing the "Hainan Production Base" in addition to the company's existing production base, the company aims to meet the future growth needs of its sales scale and enhance its strategic layout. After the completion of this project, the company will be able to more timely and effectively meet the sales demand in Hainan and Southeast Asia regions, reduce long-distance logistics costs, and further enhance its core competitiveness.