(Yicai Global) Jan. 18 -- Nongfu Spring, which has the biggest share of China’s bottled water market, is reportedly investing CNY1.1 billion (USD160 million) to build a second production base in Sichuan province.

Nongfu Spring signed an investment agreement with a local government in the southwestern province yesterday, according to a Sichuan Daily report today.

The new base in Dujiangyan will cover an area of about 0.2 square kilometers and will be completed and put into operation within five years. Its main products will be natural drinking water and beverages, with an expected annual output value of more than CNY1.5 billion.

The bottled water giant’s largest project is also in Sichuan, the report said, adding that the Emeishan plant was built in 2008.

Vice President Zhou Li reportedly said that Nongfu Spring has production bases near 12 high-quality water sources, including Qiandao Lake in eastern Zhejiang province, Danjiangkou in central Hubei province, and Changbai Mountain in northeastern Jilin province.

Nongfu Spring’s net profit jumped 15 percent to CNY4.6 billion (USD681 million) in the first half of 2022 from a year earlier on a 9.4 percent gain in revenue to CNY16.6 billion (USD2.46 billion). Product gross margin was over 59 percent.

Shares of Nongfu Spring [HKG: 9633] rose 0.8 percent today to close at HKD44.10 (USD5.64) apiece.

Editor: Peter Thomas