China C Zenith Chem (00362) issued a statement that on December 28, 2020, Heihe Longjiang Chemical (which indirectly owns 90% of the company) and independent third party Heihe Longhe Investment Management Co., Ltd. (a wholly state-owned enterprise) reached an agreement (sales agreement). Heihe Longjiang Chemical has agreed to transfer the land use rights of several plots of land (the land) located in China, at a total price of RMB 0.156 billion, including RMB 0.139 billion and RMB 17 million compensation for the vitamin C project land (land sale). The seller has transferred the legal ownership of the land with a total area of about 0.2158 million square meters to the buyer, and the settlement was completed on June 19, 2024.
The board of directors is pleased to announce that all the preconditions listed in the sales agreement have been met, and the completion has been implemented in accordance with the terms and conditions of the sales agreement on June 19, 2024. After completion, it is expected that the company will receive a sales revenue of approximately RMB 77.827 million and the company will own the remaining total area of the land of about 0.4026 million square meters as of the year ending on June 30, 2024. The actual income or loss resulting from the sale of land still needs to be audited and may differ from the above amount.
The consideration received by the company from the buyer will be used to repay bank loans, employee salaries, pension obligations, other payables and tax liabilities.