JU TENG INTL's subsidiary returns four industrial land plots in Jiangsu to the government at a cost of 356 million RMB

JU TENG INTL (03336.HK) announced that its subsidiary Da Chang (Suzhou) has entered into a return agreement with Huaying Video (Wujiang) Co., Ltd. to return four industrial land parcels located in Suzhou, Jiangsu Province, for a consideration of approximately RMB 356 million (the same below).

According to the group's latest announcement, following recent discussions with the local government and Huaying (Wujiang), due to subsequent changes in urban planning and management policies by the local government, the land and properties will be used for environmental protection and ecological facility projects. According to applicable local laws and regulations, this project cannot be undertaken by a "commercial entity" and must be undertaken by a government agency. Therefore, Da Chang (Suzhou) has terminated the agreement with Huaying (Wujiang) and entered into a new return agreement with the local government, with a consideration of approximately RMB 356 million, to be paid by the local government. The group expects to confirm unaudited revenue of approximately RMB 323 million, which will be used for the group's general working capital and capital expenditures