CHINA BOTON (03318) has signed a land acquisition agreement with the local government department in Nanshan District, Shenzhen, receiving a cash compensation of 2.272 billion yuan. Trading will resume on December 10th.

China Botton (03318) announced that on December 7, 2025, Shenzhen Botton (an indirect wholly-owned subsidiary of the Company) entered into a land acquisition agreement with the local authorities. Shenzhen Botton is required to transfer the proposed land to be acquired and its land use rights to the local authorities, in exchange for a cash compensation of RMB 2,271,913,552 (equivalent to approximately HKD 2,495,015,463). It is reported that the proposed land acquisition is located in Nanshan District, Shenzhen City, Guangdong Province, China. The total land area is approximately 64,662.42 square meters, including the buildings on the land, which are intended to be reclaimed by the local authorities according to the land acquisition agreement. In September 2023, Shenzhen Botton received a letter from the local government of Nanshan District, notifying them of the land preparation project for the Xili High-Speed Rail Hub and related projects (Xili Project), and planning to reclaim the proposed land acquisition for public interest reasons. Subsequently, Shenzhen Botton immediately engaged in negotiations and discussions with the government officials of the Xili Project to seek further information, including background information on the Xili High-Speed Rail Hub and related land preparation project, construction plans, compensation plans, as well as relevant sketches and maps. The Xili Project is an important transportation project and a foundation infrastructure project for the transformation of Shenzhen City, including the construction of new residential and commercial buildings, as well as community areas, social facilities, and public utilities. The proposed land acquisition will make a significant contribution to the economic and urban development of the Xili Project, benefiting the country and society. Up to the date of this announcement, the Group has established multiple factories in other major cities in China (such as Huizhou, Dongguan, Fuzhou, and Xiantao, Hubei), as well as a factory in Indonesia. There are no production lines of the Group's business divisions on the proposed land to be acquired. Therefore, the Board of Directors believes that the land acquisition will not have any significant adverse impact on the operations and primary business activities of the Group. Furthermore, the compensation amount exceeds the independent valuation of the proposed land acquisition. The Company will benefit from the compensation, enhancing the operational funds of the Group. The Company has applied to the Stock Exchange for the resumption of trading in its shares on the Stock Exchange from 9:00 am on December 10, 2025.