Li's Pharmaceutical Factory (00950) issued an announcement. On December 27, 2024, Guangzhou Zhaokang signed a compensation contract with the Guangzhou Nansha Economic and Technological Development Zone Planning and Natural Resources Bureau and the Guangzhou Nansha Development Zone Land Development Center to take back the land use rights of the land. According to the land reclamation contract, Guangzhou Zhaokang will return the land use rights to the Land Development Center.
The land is located west of Huangge Avenue, Huangge Town, Nansha District, Guangzhou, China. The period of land use rights for this land (designated as medical and health land) is 50 years from October 30, 2015. The land covers a total area of about 0.0367 million square meters, with a total planned floor area of about 0.066 million square meters.
According to the land reclamation contract, the total compensation payable by the Land Development Center to Guangzhou Zhaokang for the restitution of the land is RMB 89.2 million, of which RMB 10 million should be paid by the Land Development Center to Guangzhou Zhaokang before May 30, 2026. After receiving the first payment, Guangzhou Zhaokang should apply to the Nansha Planning Bureau for the return of its land use rights within 30 days. The balance of compensation of RMB 79.2 million shall be payable under the following circumstances: (a) (if the land is later sold by the Nansha Planning Bureau and Land Development Center to any third party after handover), the Land Development Center shall pay Guangzhou Zhaokang in two equal installments. Of the second payment, 50% of RMB 39.6 million shall be paid within 120 days after receipt of the proceeds of the land received from the subsequent sale; and the remaining 50% of the second payment of RMB 39.6 million shall be paid after Guangzhou Zhaokang returns the land to the Land Development Center Payment is made within 120 days in accordance with the method stipulated in the land reclamation contract; (b) (in all other cases) the Land Development Center shall be paid in one lump sum to Guangzhou Zhaokang. The second payment of 100% RMB 79.2 million shall be paid within 120 days after Guangzhou Zhaokang returns the land to the Land Development Center in accordance with the method stipulated in the land take-back contract.
