CHTC Fong’s International Company Limited announced a proposed very substantial disposal involving the surrender of its 133,333.3 sq m Cuicheng Road manufacturing site in Zhongshan City under a government land-resumption programme.

Key terms • MF Zhongshan, an indirect wholly-owned subsidiary, will enter into an agreement with Zhongshan City Land Reserve Centre and Zhongshan Cuiheng New District Management Committee. • Total cash compensation: RMB308.06 million (approximately HK$341.07 million), payable in four instalments tied to mortgage cancellation, application filing, administrative approval and land hand-over. • Independent valuer assessed the parcel at RMB306.88 million; the agreed sum therefore carries a slight premium.

Financial impact • Net book value of the land and buildings: RMB108.24 million. • After deducting estimated taxes and expenses, the Group expects an unaudited disposal gain of about RMB195.81 million (HK$216.79 million). • Pro-forma figures show 2025 consolidated profit would rise from HK$4.09 million to HK$193.59 million, while total assets would edge up to HK$3.51 billion and total liabilities fall to HK$2.35 billion. • Proceeds are earmarked for bank-loan repayment; outstanding borrowings stood at RMB800.51 million at the latest practicable date.

Operational notes • The Cuicheng Road plants generated HK$707.44 million in 2025, representing 33 % of Group revenue. Production and office operations will be relocated over two months to adjacent land owned by Fong’s National Engineering (Guangdong), which has available capacity following recent upgrades. • Management estimates relocation costs at RMB4.93 million and has included RMB15.83 million of business-interruption compensation in the valuation.

Governance and timetable • A special general meeting will be held on 28 May 2026 to seek shareholder approval; the board—except non-executive director Mr Kevin Fong who raised valuation concerns—considers the terms fair and reasonable. • The register of members will close from 22 May to 28 May 2026 for voting eligibility.

Upon completion, the Group will concentrate its dyeing-and-finishing machinery production on a single Zhongshan campus, enhance land-use efficiency and improve liquidity through the cash inflow from the compensation.