NANFANG COMM (01617) announced plans to develop the Southern Technology Eco-Industrial Park by renovating and reconstructing its former factory site in Changzhou, Jiangsu Province, China. The company expects to invest RMB 50 million in the proposed redevelopment project. The board of directors believes that the project aligns with the company's long-term growth objectives and business strategy.

Operationally and in terms of management, the board asserts that consolidating production capabilities from two locations into one will enable economies of scale and increased production efficiency. The anticipated scale effect is expected to lead to reductions in procurement, logistics, and management costs, allowing for a more focused management team and enhancing production agility in preparation for future mass production of products.

Additionally, this initiative presents an excellent opportunity for the company to reduce overall operating costs and create new cash flows by transforming the old factory space into a modern industrial park, significantly lowering maintenance expenses associated with aging or outdated equipment and facilities. The company will also consider leasing and/or selling properties within the industrial park to generate new revenue streams.

The board views this redevelopment project as a pivotal opportunity to enhance the company's image and drive continued breakthroughs in its business strategy. It is expected that the proposed redevelopment will attract elite and high-quality talent to the company, aiding in the expansion of its operations.