Lee & Man Paper (02314) and L & M Chemical (00746) jointly announced that on August 15, 2025, Jiangsu Paper, an indirect wholly-owned subsidiary of Lee & Man Paper (02314), and Jiangsu Chemical, an indirect wholly-owned subsidiary of L & M Chemical (00746), entered into a land transfer agreement. Under the agreement, Jiangsu Paper conditionally agreed to transfer the land use rights of a plot located in Changshu Economic and Technological Development Zone, Jiangsu Province, China to Jiangsu Chemical for a consideration of approximately RMB 67.53 million.
The land is situated at No. 6-8 Xinggang Road, Changshu Economic and Technological Development Zone, Jiangsu Province, China, with a total area of approximately 74,937 square meters. The land is designated for industrial use, and the land use rights will expire between October 12, 2059 and October 20, 2060. The original acquisition cost of the land use rights held by Jiangsu Paper in 2010 was approximately RMB 22.7 million.
For Lee & Man Paper, the land represents an idle portion of the land currently occupied by Jiangsu Paper and is not being used for its current production operations. The land disposal will help Jiangsu Paper optimize its asset structure and enhance the overall efficiency of internal land use within Jiangsu Paper. The additional income generated from the land disposal will also help strengthen Lee & Man Paper Group's financial position and support its business development.
For L & M Chemical, Jiangsu Chemical plans to expand its existing product lines, and the land is strategically located adjacent to Jiangsu Chemical's existing production facilities, offering geographical advantages and potential reduction in construction costs for new facilities. Additionally, the proximity to existing facilities will facilitate unified management, optimize safety production layout, and improve material transportation efficiency, thereby creating greater economic benefits and long-term development potential for L & M Chemical while enhancing overall operational efficiency and effectiveness.