Tianshui Zhongxing invests CNY 700m in edible fungus base

Tianshui Zhongxing Bio-Technology (SZSE:002772) announced a CNY 700 million investment in an edible fungus industrial park in Jintang County, Sichuan Province. The project will be executed in two phases: The first phase involves a CNY 500 million investment using leased facilities to cultivate rare fungi like Cordyceps Sinensis and establish R&D and production centers. The second phase involves a CNY 200 million investment to expand the facilities. To manage the project, the company will establish a wholly-owned subsidiary, Sichuan Zhongxing Bio-Technology, with a registered capital of CNY 50 million. In related news, shareholder Tian De extended a 15 million-share pledge with Guotai Haitong Securities, which, along with shareholder Tao Jun, account for a combined 62.31 million shares pledged. The investment aligns with Tianshui Zhongxing's strategy to broaden its production base and diversify its product portfolio, with the goal of strengthening its overall competitiveness.