CHU KONG PIPE (01938) affiliate plans to sell land in Guangdong Province for RMB 30.25 million.

CHU KONG PIPE (01938) announced that on December 27, 2024, its indirect wholly-owned subsidiary CHU KONG PIPE (Yunfu) signed an agreement with the Yun'an District Land Reserve Center in Yunfu City to sell land for a price of RMB 30.25 million. The land, which has not been developed yet, was originally purchased for setting up a steel pipe production line in Yunfu. The total land area is approximately 129,400 square meters, located in Huangwan Village, Liudu Town, Yun'an District, Yunfu City, Guangdong Province, China. The land is currently zoned for industrial use. As of December 31, 2024, the land was valued at RMB 29 million on the company's books. The land was acquired by the group in 2021 and has remained undeveloped for many years. In the past two fiscal years leading up to the land sale agreement, the land did not generate any revenue. There are no buildings or structures on the land, so significant expenses for land restoration are not expected. The board of directors believes that selling the land can provide the group with cash flow, supplement its working capital, and improve the group's financial position. Selling the land can enhance the efficiency of asset utilization without causing any significant impact on the group's business and operations.