LEE & MAN PAPER plans to transfer the land use rights in Changshu City to L & M CHEMICAL
LEE & MAN PAPER and L & M CHEMICAL have reached a land transfer agreement, planning to transfer the land use rights located in the Changshu Economic and Technological Development Zone to L & M CHEMICAL on August 15, 2025, for a transaction amount of approximately 67.53 million RMB. The land area is approximately 74,937 square meters, primarily for industrial use, with the use rights expiring in 2060. This move will optimize LEE & MAN PAPER's asset structure, improve its financial condition, and support L & M CHEMICAL's product line expansion and operational efficiency
According to the Zhitong Finance APP, L & M CHEMICAL (00746) and LEE & MAN PAPER (02314) jointly announced that on August 15, 2025, LEE & MAN PAPER (02314) indirectly wholly-owned subsidiary Jiangsu Paper and L & M CHEMICAL (00746) indirectly wholly-owned subsidiary Jiangsu Chemical entered into a land transfer agreement. Under this agreement, Jiangsu Paper conditionally agreed to transfer the land use rights of the land located in Changshu Economic and Technological Development Zone, Jiangsu Province, China, to Jiangsu Chemical for a consideration of approximately RMB 67.53 million.
The land is located at No. 6-8 Xinggang Road, Changshu Economic and Technological Development Zone, Jiangsu Province, China, with a total area of approximately 74,937 square meters. The land is for industrial use, and the term of the land use rights will end between October 12, 2059, and October 20, 2060. The original acquisition cost of the land use rights held by Jiangsu Paper in 2010 was approximately RMB 22.7 million.
For LEE & MAN PAPER, this land represents the idle portion of the land currently occupied by Jiangsu Paper and is not used for its current production operations. The sale of the land will help Jiangsu Paper optimize its asset structure and enhance the overall efficiency of land use internally. The additional income generated from the land sale will also help strengthen the financial position of the LEE & MAN PAPER Group and support its business development.
For L & M CHEMICAL, Jiangsu Chemical plans to expand its existing product line, and the land is adjacent to Jiangsu Chemical's existing production facilities, offering a favorable geographical location and reducing construction costs for new facilities. Additionally, the proximity to existing plants will facilitate unified management, optimize safety production layout, and improve material transportation efficiency, thereby creating greater economic benefits and long-term development potential for L & M CHEMICAL, enhancing overall operational efficiency and effectiveness
