WS-SK TARGET is planning to acquire land in Malaysia for 24 million Malaysian Ringgit.

WS-SK TARGET (08427) announced on June 12, 2026 that the seller, Kien Heng Hong Ginseng Sdn. Bhd., has accepted an offer from the buyer, Target Precast Industries Sdn. Bhd. (a wholly-owned subsidiary), to purchase the property for a price of RM24 million, and the seller has agreed to sell the property. The property is located at No. 1894, Jalan Kpb 5, Kawasan Perindustrian Balakong, 43300 Seri Kembangan, Selangor, Malaysia, with a total area of approximately 8093.7 square meters. The property is freehold land intended for industrial use. The buyer is currently leasing the property for an annual rent of about RM582,000 and has built a permanent production plant on the site, investing significant capital in the plant, machinery, infrastructure, and facilities on the property. The existing lease for the property will expire on January 31, 2027, with approximately eight months remaining as of the date of this announcement. The seller has expressed intention to sell the property on the open market. If the buyer is unable to renew the lease with any potential buyers of the property, they will need to relocate their production plant to another location and undertake all necessary preparations, including leveling the land and applying for and obtaining all necessary approvals and licenses. The relocation process is expected to take at least 12 months and may cause significant disruption to the group's production operations, including potential production capacity losses, delays in completing customer orders, and significant relocation costs. Therefore, the board believes that the acquisition will enable the group to secure a permanent production base, providing greater operational certainty and control over its production activities, thereby reducing the potential disruption caused by the termination or non-renewal of the existing lease. The acquisition is also expected to reduce the group's long-term rental expenses and mitigate the risk of future rental increases. Additionally, owning strategic industrial property for its core business will strengthen the group's asset base. Owning the property will further provide flexibility for the group to expand its production facilities and storage area in the future, in line with its long-term business growth plans, subject to obtaining relevant approvals. The group may also benefit from any potential capital appreciation of the property.