ContiOcean Environment Tech Group Co., Ltd. announced that its wholly owned unit, ContiOcean (Jiangsu) Marine Equipment Manufacturing Co., Ltd., has signed a contract on 1 September 2026 to acquire industrial land, buildings and ancillary equipment in Rugao City, Jiangsu Province for RMB78.47 million (tax exclusive). The assets were purchased via public tender from Shanghai Electric Yantong (Rugao) Construction Technology Co., Ltd., a subsidiary of the Shanghai municipal state-owned enterprise Shanghai Electric Concrete Building Technology Group Co., Ltd.
The asset package comprises: • Land-use rights covering approximately 67,736 sq.m., with 43 years remaining on the term (expiring 21 January 2069). • Buildings with a gross floor area of about 37,930.77 sq.m., completed in 2021 and including an office block, factory premises and a security booth. • Equipment consisting of one set of ancillary facilities and 20 overhead cranes.
Transaction terms stipulate that the RMB23.54 million bid deposit paid on 26 August 2026 will be credited against the purchase price, while the remaining RMB54.93 million must be remitted to escrow at Shanghai United Assets and Equity Exchange within five business days of signing. Completion occurs once the consideration is transferred in full; title registration for all assets must be finalised within 35 business days after receipt of the property rights transaction certificate. Late payment or delayed transfer attracts daily default charges of 0.1% (1‰) of the outstanding amount.
According to an independent valuation dated 31 March 2026, the combined appraised value of the assets is RMB95.44 million, broken down into RMB72.99 million for the buildings, RMB20.46 million for the land-use rights and RMB1.99 million for the equipment. The variance between net book values and appraised figures reflects lower replacement costs for buildings due to reduced raw-material prices, appreciation in local industrial land values and a higher-than-expected economic life for the equipment.
ContiOcean plans to fund the acquisition through IPO proceeds, internal cash and/or existing banking facilities. Management views the Rugao site—located in one of China’s premier shipbuilding and marine-equipment clusters—as instrumental in expanding production capacity, enhancing high-end manufacturing capabilities and improving market responsiveness.
Under Hong Kong Listing Rules, the deal constitutes a discloseable transaction with applicable percentage ratios exceeding 5% but below 25%, requiring public disclosure but not shareholder approval.