KINGDOM HOLDING's subsidiary Zhejiang Jinyuan has entered into a master agreement with Zhejiang Haichen
KINGDOM HOLDING's wholly-owned subsidiary Zhejiang Jinyuan has signed a general agreement with Zhejiang Haichen, with Zhejiang Haichen serving as the general contractor. The total project price is RMB 72 million. The project is located in Egypt, with an annual output of 3,800 tons of high-grade linen yarn, aimed at expanding production capacity to meet market demand, expected to reduce costs and enjoy tax benefits, enhancing long-term returns
According to the announcement from Kingdom Holding (00528), on October 24, 2025, after a public bidding process, the company's indirect wholly-owned subsidiary Zhejiang Jinyuan entered into a master agreement with Zhejiang Haichen, under which Zhejiang Haichen will act as the general contractor and provide procurement and management services for the development of the project, with a total price of RMB 72 million (including a contract price of RMB 70 million and a bonus of RMB 2 million).
Under the master agreement, Kingdom Linen (an indirect subsidiary of Zhejiang Jinyuan, in which the company directly owns 1% and indirectly owns 99%) will enter into procurement and installation contracts with Hangzhou Lixuan for procurement services and a construction and project management contract with Haichen Egypt for management services. These subcontracts further elaborate on the relevant procurement and engineering construction aspects of the project based on the principles, guidelines, terms, and conditions set forth in the master agreement. The rights, obligations, and responsibilities of the contractors specified in the master agreement are equally applicable to the three contractors: Zhejiang Haichen, Hangzhou Lixuan, and Haichen Egypt.
The project is a high-end linen yarn project with an annual output of 3,800 tons by Kingdom Linen, located in the Sadat Industrial Zone of Manufiya Province, Egypt, with a total construction area of 26,611.25 square meters. It is intended for Kingdom Linen's production of linen yarn.
The group is a leading exporter in China's linen yarn industry. Given the current growth trend in the hemp and linen industry, the group intends to further expand its production capacity to meet market demand for hemp and linen yarn.
Egypt is one of the group's main strategic development regions. The project is expected to reduce land leasing, labor, and energy costs for the group's linen yarn production. In addition, under Egypt's current applicable tax policies, the project is expected to enjoy certain tax incentives, and exporting linen yarn manufactured in Egypt to EU countries may be exempt from quotas and tariffs. Therefore, it is anticipated that as the project and its linen yarn production proceed in an orderly manner, the group's long-term returns will be enhanced
