On November 8th, Nanshun (Hong Kong) (00411.HK) announced that on November 8, 2024, the company's wholly-owned subsidiary Nanshun Home Care Products and Conghua Economic Development Zone related to Nanshun Home Care Products signed an investment agreement to build a new home care product production plant. Under the agreement, (i) Nanshun Home Care Products is expected to invest a total amount of RMB 0.337 billion in the project; and (ii) Conghua Economic Development Zone will deliver the land and assist Nanshun Home Care Products (including) in obtaining relevant government approvals, permits, and licenses for the project.

A limited liability project company will be established in Conghua District, Guangdong Province, China as a wholly-owned subsidiary of Nanshun Home Care Products, responsible for holding and operating the new plant. The new plant is expected to be completed within two years.

The land refers to a piece of land located in the Mingzhu Industrial Park of Conghua Economic Development Zone in Guangdong, China, with a total land area of approximately 60 mu (about 40,001 square meters).

The company remains committed to strengthening the supply chain and ensuring the continuous growth of home care business in mainland China and Hong Kong. Given the current and expected business momentum of the home care division, the new plant will enhance the quality of the company's core market products and product supply certainty, and improve the company's long-term effective expansion capabilities. With the company further expanding its product portfolio and product diversification, the new plant's new research and development infrastructure and capabilities will also enhance the company's ability to innovate and develop new products. The new plant is expected to start operation in the 2026/27 fiscal year.