Shares in the Tianmei Beverage Group surged after the Chinese company announced expansion of its bottled water production.
A short time ago, the shares were up 68% to 13.5 cents but still below the listing price of 20 cents.
The company, which listed on the ASX in February after raising $10 million, says it has secured its own water source following completion of the acquisition of the Qianlifeng Water Plant.
“The acquisition not only serves to significantly mitigate water supply risks, but also sets the platform for further development and to meet increasing demand for Tianmei’s product line of bottled drinking water,” Tianmei Beverage said in a statement to the ASX.
The company plans to expand production, investing $3.9 million over the next 12 months.
The existing plant has capacity of 35.47 million litres a year of drinking water. The expansion will increase this to 98.55 million litres.
The company says the water source at Qianlifeng has a unique composition, with low sodium and mineralisation but is rich in selenium and strontium and other trace elements.
Tianmei is capitalsing on growing demand for clean and green products in China with a range of water products including bottled water, water for infants, water dispensers, water purifiers and a beauty nano spray.
According to a financial report for the year ended November 2016, sales are growing fast. Tianmei Beverage had sales revenue of $66.4 million, up from $10.11 million the year before.
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