L & M CHEMICAL (00746) intends to lease Vietnamese land as a subsidiary.

L & M CHEMICAL (00746) announces that on December 25, 2025, the sublease contract was signed between Thanh Binh Phu My Joint Stock Company and Vietnam L & M CHEMICAL (an indirect wholly-owned subsidiary of the company). According to the contract, Vietnam L & M CHEMICAL agrees to sublease the land in Ho Chi Minh City, Vietnam along with its adjacent water area to the subleasing party from December 25, 2025 to December 21, 2077, with an infrastructure fee of approximately 15,395.03 billion Vietnamese dong (equivalent to approximately 455.7 million Hong Kong dollars). The land is located in the special industrial zone of Phu My 3, New Rich Ward in Ho Chi Minh City, Vietnam, with a total area of approximately 285,000 square meters, consisting of two connected plots of land, with a contiguous water area of approximately 21,635 square meters. The land is intended for industrial use. The company plans to deepen its penetration and layout in the Vietnamese market to capture local attractive sales prices and demand brought by potential customers near the land. The company expects the demand in the Vietnamese market to continue to grow, leading to an increase in the demand for local production capacity. To support its expansion and operational needs, the company plans to build a new self-operated production facility on the land. The company anticipates that most of the products produced at the facility will be sold within Vietnam, aligning production with end-market demand.