On June 19th, 2024, the buyer (the company's indirect wholly-owned subsidiary) successfully bid for the land use right of an industrial land with a total area of about 122,836 square meters (or 184 mu) located in the east of the Economic Development Zone of Shexian, which was listed by the Shexian Natural Resources and Planning Bureau. On June 19th, 2024, the buyer and the Shexian Natural Resources and Planning Bureau signed a confirmation of the transaction for the land acquisition, at a price of RMB 36.85 million.
The buyer expects to sign a land use rights contract with the Shexian Natural Resources and Planning Bureau on or before July 19th, 2024. The buyer is a company established in China, which is an indirect wholly-owned subsidiary of the company, mainly engaged in the manufacturing and sales of decorative printing material products in China.
The Group is mainly engaged in the manufacturing and sales of decorative printing material products. Although the Group has established two production plants in Zhejiang Province, the Group has been considering opportunities to expand its existing production plants to meet the growing demand for the Group's decorative printing material products. The land acquisition provides sufficient production capacity and flexibility for this group, which promotes the business expansion of the group in Shexian, Huangshan City, Anhui Province, China. Considering the expected operating costs (including but not limited to production costs and labor costs) that this group will generate in Shexian, the director believes that the land acquisition is consistent with the global strategy of this group and will further enhance the group's profitability and promote its long-term sustainable development.