Kingdom Holdings Limited (528) disclosed that its indirect wholly-owned subsidiary, Zhejiang Jinyuan, has signed an engineering, procurement, and construction (EPC) agreement (the “Master Agreement”) with Zhejiang Haichen for a total consideration of RMB72 million. This figure comprises a RMB70 million contract price and up to RMB2 million in early-completion bonuses. The agreement covers procurement services, construction operations, and project management for a new high-grade linen yarn facility in Egypt, with a targeted annual output of 3,800 tons.

Under the Master Agreement, Kingdom Linen, a subsidiary of Zhejiang Jinyuan, also entered into two sub-contracts: a Procurement & Installation Contract with Hangzhou Lixuan worth RMB51 million and a Construction & Project Management Contract with Haichen Egypt worth RMB19 million. Both contracts stipulate segmented payment schedules tied to construction milestones. The plant, to be sited in the Sadat Industrial Zone, is expected to commence construction on 24 October 2025 and finish by 15 September 2026.

This investment expands Kingdom Holdings’ linen production capacity in a region identified as strategically advantageous. The company anticipates potential benefits from local tax incentives, reduced labor and energy costs, and possible preferential access to European Union markets for exports. According to the announcement, the transaction meets the criteria of a discloseable transaction under Chapter 14 of the Listing Rules and is subject to reporting and announcement requirements. Kingdom Holdings remains one of the PRC’s leading exporters of linen yarn and views this project as an avenue for long-term growth.