CU VENTURE INV (08159) signed a lease agreement with Vietnam for a property affiliated with Jin Cheng Paper Industry.

CU VENTURE INV (08159) announced that on November 18, 2024, Glory Electronics Limited (an indirect wholly-owned subsidiary of the company) (as the tenant) and Inco Paper Industries Limited (as the landlord) entered into a lease agreement for the property to be used as the group's production base in Vietnam for a period of five years. The property is located in the Pho Noi A Industrial Zone, D3 Road, in Le Hong Village, Van Lam District, Hung Yen Province, Vietnam, with a total area of approximately 10,000 square meters, including three production workshops, an office building, a security room, transportation and green space. The announcement stated that the group's electronic business primarily focuses on exporting electronic products. To mitigate the impact of external factors such as geopolitical issues and trade tariffs between China and the United States, there is an urgent need for the group to establish production bases outside of mainland China. By establishing a production base outside of China, the produced electronic products can meet the order demand of the group's main overseas customers, and the base will serve as an important link for the group to connect with the global market, promote closer cooperation with overseas customers, and achieve the company's "China Plus One" business strategy. Additionally, establishing an overseas production base will help enhance the efficiency and capacity of the group, improve quality control, and ensure that the electronic products meet international quality standards and requirements. After in-depth comparisons and assessments, the company believes that the electronic industry supply chain in Vietnam and the potential downstream customer base are more concentrated and relatively mature compared to other Southeast Asian countries (such as Thailand, Myanmar, Cambodia, etc.). Therefore, the company has decided to enter into the lease agreement to rent the property for the group to operate its electronic business in Vietnam.