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Xiangyu Dredging Announcesthe Acquisition of Land in Yancheng City

Date£º9/5/2012 10:32:00 Popularity£º


Xiangyu Dredging Holdings Limitedis pleased to announce that on 7 May 2012, Jiangsu Xingyu (being treated as asubsidiary of the Company) entered into the Land Acquisition Agreement for the acquisition ofland use rights in respect of the Site located in Yancheng City, Jiangsu Province, the PRC at aconsideration of about RMB96.4 million (equivalent to about HK$118.6 million) for the Group¡¯sown use.

The Company has been growing at a rapid pace. To further enhance its operation efficiency, it plansto re-locate offices of the Company and its subsidiaries to a centralized headquarter. The YanduWestern District is a ¡®¡®High and New Technology District¡¯¡¯ in Yancheng City which has recentlyaccelerated its development by offering various financial incentive policies to new and growingenterprises that establish their headquarters in the District. The financial incentive policies offeredinclude one-off financial grant from the local government, or annual incentives which may beenjoyed for a specific number of years. In connection with the Company¡¯s expansion plan and inorder to be eligible for such incentive policies, the Group has entered into the Land AcquisitionAgreement.

The Company has agreed to advance or to procure its subsidiaries to advance toJiangyu Xingyu no more than RMB60 million (equivalent to about HK$73.8 million) to JiangsuXingyu for settling part of the consideration for the Land Acquisition.

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