CHINA BOTON (03318) Signs Land Acquisition Agreement in Shenzhen's Nanshan District, Receives RMB 2.27 Billion Compensation, Resumes Trading on Dec 10

CHINA BOTON (03318) announced that on December 7, 2025, Shenzhen Boton (an indirect wholly-owned subsidiary of the company) entered into a land acquisition agreement with local authorities. Under the agreement, Shenzhen Boton will transfer the designated land and its use rights to the authorities in exchange for a cash compensation of RMB 2,271,913,552 (approximately HKD 2,495,015,463).

The land in question is located on Leli Road in Nanshan District, Shenzhen, Guangdong Province, covering a total area of approximately 64,662.42 square meters, including buildings on the site. The land will be reclaimed by local authorities under the agreement.

In September 2023, Shenzhen Boton received a notice from the Nanshan District government regarding the land preparation project for the Xili High-Speed Rail Hub and related projects (Xili Project). The government planned to reclaim the land for public interest purposes. Subsequently, Shenzhen Boton engaged in discussions with government officials to obtain further details, including background information, construction plans, compensation schemes, and related diagrams for the Xili Project.

The Xili Project is a significant transportation initiative and a transformative infrastructure project for Shenzhen, encompassing new residential and commercial buildings, community facilities, and public utilities. The acquisition of the land is expected to contribute substantially to the economic and urban development benefits of the Xili Project for the broader society.

Over the years and up to the date of this announcement, the group has established multiple factories in other major Chinese cities, such as Huizhou, Dongguan, Fuzhou, and Xiantao in Hubei, as well as in Indonesia. The land in question does not house any production lines critical to the group's business operations. Therefore, the board believes the acquisition will not materially adversely affect the group's operations or core business activities.

Additionally, the compensation amount exceeds the independent valuation of the land. The proceeds from the compensation will strengthen the group's working capital. The company has applied to the Hong Kong Stock Exchange for the resumption of share trading, effective from 9:00 AM on December 10, 2025.