CHINARES PHARMA (03320): Dong-E-E-Jiao (000423.SZ) plans to invest in and construct a health consumer goods industrial park.

CHINARES PHARMA (03320) announced that its non-wholly owned subsidiary Dong-E-E-Jiao (000423.SZ) has decided to invest in and build a health consumer goods industrial park. The health consumer goods industrial park is expected to include manufacturing facilities for health consumer goods (such as pharmaceuticals, related food products, health supplements, and functional foods), as well as supporting warehousing and logistics facilities, quality inspection center, new product incubation center, e-commerce sorting and finished medicine warehouse, etc. The total area of the health consumer goods industrial park is expected to be approximately 406,800 square meters, with a proposed construction area of 151,100 square meters, including production facilities for gelatin cakes, gelatin dates, and gelatin powder, as well as supporting integrated warehouses, e-commerce centers, and other storage facilities, quality inspection and incubation centers to meet testing and new product demands, and equipped with public facilities such as wastewater treatment and power supply. The total investment amount is estimated to be approximately RMB 1.485 billion, with a fixed asset investment amount of about RMB 1.421 billion, and basic operating funds of about RMB 640 million. The investment and construction of the health consumer goods industrial park is a necessary requirement for Dong-E-E-Jiao to implement the "1238" strategy, involving the creation of a "Dong-E-E-Jiao model" for the high-quality development of traditional Chinese medicine, and the establishment of a sound business growth model with the "dual-drive" of pharmaceuticals and health consumer goods, expanding health consumer goods business on the basis of pharmaceuticals, cultivating a second growth curve, and mutually promoting and empowering the two business sectors. The proposed project also meets the urgent needs for the development of Dong-E-E-Jiao's health consumer goods business. The existing industrial park of Dong-E-E-Jiao has limitations in expansion area and production line capacity bottlenecks, which cannot meet the rapid upgrading and iteration needs of health consumer goods. In addition, self-built factories help to build the core advantages of Dong-E-E-Jiao in the health consumer goods field. With the main focus on gelatin products, Dong-E-E-Jiao builds production in the Dongeyan production area, which can strengthen the brand's regional awareness, further enhance core competitiveness, systematically build brand support points, and control long-term scale costs. The investment and construction of the health consumer goods industrial park is conditional on the acquisition of the proposed project's land and the signing of a construction agreement, subject to the terms and conditions set forth in the agreement.