ZHENGYE INT'L (03363) has agreed to dispose of the first floor of a factory building within its Zhigu Project in Zhongshan City for RMB7.88 million. The 1,208.06 m² asset changes hands at roughly RMB6,523 per m², a level that management states aligns with recent discounted asking prices for comparable first-floor industrial units in the area (RMB5,800–7,200 per m² after a typical 10% discount).

The transaction is expected to generate a gain of about RMB3.89 million. Net proceeds will be allocated as follows: 35% for taxes and transaction levies, 55% to fund Phase Two of the Zhigu Project, and 10% for general working capital. Of the portion reserved for Phase Two, 40% is designated for construction and installation work, 10% for professional fees, and 5% for contingencies.

Management notes that under Zhongshan’s “Three Olds” redevelopment policy, no less than 30% of the Zhigu Project’s completed gross floor area must be retained for at least 15 years; the sold unit forms part of the permissible saleable area. The Group continues to operate 59 factories across three production bases—Hongxing, Yongfa and Zhengyi—so the disposal is not expected to impair day-to-day manufacturing, storage or logistics capacity.