Angel Yeast Contributes USD 43.46 Million to Establish New Subsidiary and Yeast Production Facility in Indonesia

BANDAR LAMPUNG,Indonesia,Oct. 10, 2024/PRNewswire/ -- Angel Yeast(SH:600298) aglobal leader in yeast manufacturing, is partnering with Indonesian agricultural company PT.Tunas Baru Lampung Tbk ("TBLA") to set up a subsidiary in Lampung Province and acquire land to develop agricultural production projects, in a move to further optimizeAngel Yeast'sglobal yeast production operations and carry forward its international strategy, boosting its competitive advantages in theAsia-Pacificmarkets.

The subsidiary has a registered capital of381 million yuan(USD54.29 million), of whichAngel Yeastwill contribute about305 million yuan(USD43.46 million) and hold 80 percent of the shares, while TBLA will contribute about76 million yuan(USD10.83 million) for 20 percent of the shares. The registration and land transaction procedures are estimated to be completed beforeFebruary 2025.

The land to be acquired for the project is held by Sungai Budi Group, and the industrial land has a total area of 15.31 hectares, with the total amount of the land acquisition expected to be worth approximatelyRp76.6 billion(USD5.015 million).

Indonesiahas the world's fourth largest population and a high demand for yeast products, with an abundant supply of raw materials and convenient location in the Straits ofMalacca. Chen Hongquan, chairman and general manager of Angel Yeast Indonesia Company, noted that from 2010 to present,Angel Yeasthas built factories inEgyptand other countries, and that setting up the subsidiary inIndonesiawill fully leverage the local resources, strategic location, tariff advantages to accelerate and deepen the company's development in neighboring markets.

"The subsidiary will not only solidify our presence inIndonesia'syeast market to address increasing demand, but it will also enhance our competitive edge and long-term profitability in line withAngel Yeast'sstrategic goals. Additionally, we plan to aggressively penetrate markets inIndia, Oceania, andNorth Americato accelerate our market development and expand our market share,"said Chen.

In the first half of 2024,Angel Yeastachieved an operating revenue of7.175 billion yuan(USD1.02 billion), an increase of 6.86 percent year-on-year. The total fermentation production reached 204,000 tons, up 11.5 percent year-on-year.Angel Yeast'soverseas revenue in the first half of the year increased significantly, driven by the bright prospects of the industry and the acceleration of the company's international development roadmap."Moving forward,Angel Yeastis committed to its mission of advancing biotechnology to foster healthier lifestyles. We will confidently enhance our technological innovation and research and development capabilities as we expand into global markets,"said Chen.

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SOURCEAngel Yeast