According to the announcement by Jinsheng Group (Holdings) (00794) on the Zhitong Finance and Economics APP, as part of the government-led relocation arrangements for the reconstruction of the Tangxiayong community, the tenant of this property, Zhongzhou Paper (Shenzhen) Co., Ltd., has entered into a relocation compensation agreement with the relocation party and the owner on September 2, 2024. The total compensation amount is 2.86 million yuan.

It is reported that the property is located at No. 41 Innovation Road, Tangxiayong Community, Yanluo Street, Bao'an District, Shenzhen, China, including the building factory, dormitory, and supporting facilities.

The Group is mainly engaged in the manufacture and sale of corrugated paperboard and paper packaging products to customers with production bases in China. The property is leased under a lease agreement and is used by the Group as a production factory for corrugated paperboard and paper packaging products, as well as employee dormitories.

To implement this reconstruction plan, the company was notified by the relevant government departments to vacate the property for its business before the final deadline for relocation. It negotiated compensation matters with the relocation party and the owner to pay the costs of early termination of the lease agreement, including relocation costs and layoffs. Therefore, on September 2, 2024, the tenant entered into a relocation compensation agreement for the sale, and the Group is entitled to compensation.

The total amount of compensation of 2.86 million yuan was determined after fair negotiations by all parties and with reference to (including) the independent valuer appointed by the company adopting the cost method to evaluate the expected relocation costs and the losses due to the suspension of business caused by the early termination of the lease agreement, totaling 2.8547 million yuan payable statutory compensation market cap (independent valuation) as of August 20, 2024. According to the relocation compensation agreement, the compensation payable to the tenant will be used in full to pay the costs of early termination of the lease agreement, including the relocation costs and layoffs incurred by the Group due to vacating the property.