Texwinca Holdings (00321.HK) announced on June 28 that its subsidiary Guangzhou Lingke and Guangzhou Development Zone Key Projects Promotion Center indirectly wholly-owned by the company had signed a land acquisition and compensation agreement on June 26, 2024. According to this agreement, Guangzhou Lingke will receive a total of RMB 98.17 million as compensation for relocation.

The scope of the land and building acquisition includes (1) original buildings, structures, attachments, and surface attachments; and (2) land use rights. The land and buildings are located at No. 56, Bulin Road, Yonghe Economic Zone, Guangzhou Development Zone, Guangdong Province, China, with a land area of 20,776 square meters and a building area of 21,628.6233 square meters.

The land and buildings acquired by the Guangzhou Development Zone Key Projects Promotion Center this time will mainly be used for future development in the Huangpu District. Guangzhou Lingke has made reasonable arrangements for follow-up transition matters for this relocation and is expected to not have a significant negative impact on its business operations after the relocation. The compensation for acquisition will be used for Guangzhou Lingke's general operating funds and business development. Its management ensures the reasonable use of the compensation. This acquisition compensation is expected to help the group obtain assets replacement income, supplement the group's cash flow, reduce external financing costs, and provide cash security for the current operation and future overall development of the group.