Core Viewpoint - Wahaha Group's Xi'an Hengfeng Beverage Co., Ltd. has been approved to build a new beverage base project in Xi'an with a total investment of 1 billion yuan, marking a strategic shift towards optimizing production capacity and enhancing supply chain networks [1][3]. Group 1: Project Details - The new project will cover over 80,000 square meters and include five production lines, with space reserved for two additional lines, focusing on a full range of products including purified water, tea, coffee, juice, and dairy beverages [1]. - This is Wahaha's first investment project in Xi'an, led by Hongsheng Beverage Group, with the site located in the Jingwei Industrial Park of Xi'an Economic Development Zone, an area already home to major food and beverage companies like Pepsi and Coca-Cola [1][3]. Group 2: Strategic Implications - The location in Xi'an is strategically positioned to serve the Northwest market, reflecting Wahaha's intent to enhance its supply chain network [1]. - The closure of 18 production lines this year indicates a necessary restructuring process, with the new base representing a significant step towards optimizing production capacity and upgrading the company's industrial structure [1][3]. Group 3: Company Background - Xi'an Hengfeng Beverage Co., Ltd. was established in December 2017 and has a registered capital of 45 million USD, with Hongsheng Beverage Group holding a 90% stake [3][4]. - Despite a change in the legal representative, the actual control remains with Zong Fuli, who continues to guide the company's strategic direction [5]. Group 4: Financial Performance - In 2024, Wahaha reported a 53% year-on-year increase in beverage sales net income, achieving the highest growth rate since its establishment, indicating a successful recovery to performance levels seen a decade ago [6].