Jilin Forest Industry subsidiary secures major China Southern Airlines water supply contract

Jilin Forest Industry announced that its controlled subsidiary, Jilin Forest Industry Quan Yang Quan Drinking Products Co., Ltd., has won the "Nanlian 2025 In-flight Drinking Water Centralized Procurement Project." The bid was awarded by Guangzhou Nanlian Aviation Food Co., Ltd., a controlled subsidiary of China Southern Airlines. The total amount for the project is CNY 147,786,681.40, with a service period of three years from the contract signing date.

This project is primarily for supplying in-flight water for China Southern Airlines flights, which is expected to enhance brand promotion and lay a solid foundation for future market expansion and strategic client development nationwide. The company anticipates a positive impact on its operating performance during the contract execution period.

However, the company also issued a risk warning, noting that the formal contract has yet to be signed. Potential risks include fluctuations in raw material prices and transportation costs, which could affect profitability. Furthermore, unforeseen circumstances or force majeure events might hinder timely and complete contract fulfillment. The agreement also involves a "pay after delivery" model, resulting in a certain repayment cycle, which investors should be aware of.