NANFANG COMM (01617) suggests developing Southern Technology Ecological Industry Park.

NANFANG COMM (01617) announced that the company will develop the Nanshan Technology Ecological Industry Park by renovating and rebuilding the former factory site located in Changzhou City, Jiangsu Province, China. The group is expected to invest 50 million RMB in the proposed rebuilding project. The board of directors believes that the proposed rebuilding project is in line with the group's long-term development goals and business strategies. In terms of operation and management, the board of directors believes that consolidating the production capacity from two factory sites into one can achieve economies of scale and intensification of production. Purchasing, logistics, and management costs will decrease due to economies of scale, allowing the management team to be more centralized, thereby enhancing production efficiency and flexibility, and preparing for large-scale intensive production of the group's future products. Furthermore, this move is also a good opportunity for the group to reduce overall operating costs and create new cash flow. Converting the old factory land into a modern industrial park can significantly reduce maintenance expenses for outdated equipment and facilities. The group will also consider renting and/or selling properties within the industrial park to explore new sources of income. The board of directors believes that the proposed rebuilding project is an important opportunity to enhance the group's image and promote its business strategy breakthroughs. It is expected that the proposed rebuilding project will attract elite and high-quality talents to join the group and help expand its business.