(Yicai Global) April 26 -- Shares of Nayuki Holdings rose after the Chinese bubble tea chain was reported as seeking to acquire bottled tea production lines for between CNY500 million and CNY1 billion (USD76.5 million and USD153 million) to expand its business in the field.

Nayuki [HKG: 2150] closed 1.8 percent higher at HKD4.43 (56 US cents) today, after earlier jumping by as much as 6.2 percent.

The Shenzhen-based firm is considering to acquire eight to 12 production lines with annual capacity of 70 million to 80 million crates, Sina Finance reported today, citing unidentified lenders. The facilities also need to meet the requirements for cold aseptic filling and have a high degree of automation, while the operators must have at least 10 years of experience in factory management, it added.

Nayuki is keen on developing the bottled beverage business, a public relations manager at the company said, but declined to comment on the news report. The firm set up Nayuki Beverage Technology last year and has launched a number of bottled tea products, the person pointed out.

China’s soft drinks market is one of the world’s largest at about CNY600 billion (USD91.8 billion), according to Forward Industry Research Institute. Bottled tea makes up almost 20 percent of the market, just behind bottled water.

In addition to Nayuki, other bubble tea chains such as Heytea and Lelecha are expanding in the ready-to-drink beverage market, as teas in containers can be consumed at anytime unlike freshly-brewed tea, and the business turns a higher gross profit.

Editor: Futura Costaglione