KWUNGS AROMA (01925) released details regarding a series of agreements to acquire three parcels of land in Thailand. These transactions are intended to support the company’s expansion of overseas production capabilities, building on its existing facilities in China and Vietnam.

On 26 May 2025, a wholly-owned subsidiary initially agreed to purchase three plots (Sale Land I, II, and III) covering a total site area of 33,106, 33,927, and 19,140 square meters respectively. The aggregate consideration for all three was THB146.86 million, determined through arm’s-length negotiation and with reference to prevailing market prices. A reservation fee of THB44.06 million has already been paid.

As the Thai subsidiary has not yet secured government approvals to directly own the land, an arrangement was put in place with a third party—who will temporarily hold the properties. In line with this, the company will extend a THB113.96 million loan to facilitate the remaining payment. Once formal approval is obtained from the relevant authorities, the land is expected to be transferred back to the Thai subsidiary at the agreed total purchase price. A mortgage over two of the plots (Sale Land I and II) will serve as security for the loan.

Under Hong Kong listing rules, the magnitude of these transactions qualifies them as disclosable, based on the aggregate consideration. The company notes that the transactions will be financed with internal resources and do not pose material risks to cash flow or overall operations.