HILONG (01623) announced that on April 29, 2026, Hilong Marine Engineering (Hong Kong) Limited (Hilong Marine, an indirect wholly-owned subsidiary of the Company) entered into investment agreements with the Management Committee of Lüsigang Economic Development Zone in Qidong, Jiangsu. Under these agreements, the Qidong project company will participate in the land bidding process to acquire the right to use an industrial plot. Should the Qidong project company successfully win the bid for the land, the Qidong Natural Resources and Planning Bureau will execute a final agreement based on these investment agreements. The total consideration for the land, calculated at the starting bid price, amounts to RMB 68 million.
The subject matter of the investment agreements is the proposed acquisition of the right to use a state-owned industrial land parcel covering approximately 500 mu in total, located in the East Harbor Area of the Enclosed Port Basin in Lüsigang Economic Development Zone, Qidong City, Jiangsu Province, China. The land acquisition will be carried out in two phases, subject to approval from relevant authorities. The first phase covers an area of about 300 mu, while the second phase covers approximately 200 mu. Both phases are designated for industrial use under the marine engineering equipment manufacturing industry classification (C3737), with a land use term of 50 years as per applicable Chinese regulations.
Each phase of the land will be acquired through a public bidding process, with a starting bid price of RMB 136,000 per mu. The project involves investing in the construction of the "Hilong Marine High-End Equipment R&D, Manufacturing, and Operation Maintenance Service Base" on the land. The base will occupy a total area of approximately 333,000 square meters (about 500 mu). It will engage in the research, development, manufacturing, and sales of marine engineering products, including offshore platforms, modules, jackets, electrical and instrumentation products, skid-mounted products, and subsea products. Additionally, it will provide EPCIC services for platforms, modules, and jackets, along with oilfield equipment operation maintenance services and related technical support.
The Board believes that the acquisition of the industrial land use rights aligns with the Group's strategic development plan to expand its marine engineering capabilities and reposition its business towards integrated EPCIC contracting services. Lüsigang Economic Development Zone offers unique advantages, including deep-water port access and proximity to the Shanghai metropolitan area, which will provide strategic logistics benefits for the domestic distribution and international export of the Group's marine engineering products. Establishing the base will enable the Group to enhance its manufacturing capabilities in the marine engineering sector and better serve its clients in Europe, the Americas, Southeast Asia, the Middle East, and Africa.
The Directors consider the terms of the investment agreements and the proposed acquisition of the industrial land use rights to be fair and reasonable, and in the overall interests of the Company and its shareholders.
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