China's Bolton (03318) received 2,272 billion yuan in cash compensation for land acquisition agreements with local authorities in Nanshan District of Shenzhen and resumed trading on December 10

According to Zhitong Finance App, China's Bolton (03318) announced that on December 7, 2025, Shenzhen Bolton (an indirect wholly-owned subsidiary of the Company) signed a land acquisition agreement with local authorities. Shenzhen Bolton shall hand over the proposed land and land use rights to the local department in exchange for cash compensation of RMB 2,271,913,552 (equivalent to approximately HK$2,495,015,463).

According to reports, the land to be expropriated is a plot of land located on Leli Road, Nanshan District, Shenzhen, Guangdong Province, China. The total land area is about 64,662.42 square meters, including buildings on this land, which is to be taken back by the local department in accordance with the land acquisition agreement.

In September 2023, Shenzhen Bolton received a letter from the Nanshan District Local Government informing them of the land preparation project for the Xili High Speed Rail Hub and related projects (Xili Project), and plans to take back the land to be expropriated on the grounds of public interest. Afterwards, Shenzhen Bolton immediately initiated discussions and discussions with government officials of the Xili project to seek further information, including background information, construction plans, compensation plans, and related diagrams and maps of the Xili high-speed rail hub and related land preparation projects.

According to reports, the Xili Project is an important transportation project and a transformation infrastructure project in Shenzhen. It also includes the construction of new residential and commercial buildings, community facilities, and utilities. The proposed land expropriation will make a significant contribution to the Xili project's economy and urban development to benefit the country and society.

In those years and up to the date of this announcement, the Group has set up a number of factories in other major cities in China (such as Huizhou, Dongguan, Fuzhou and Xiantao, Hubei), as well as factories in Indonesia. There are no production lines to maintain the Group's business divisions on the land to be expropriated. Therefore, the Board believes that the land acquisition will not have any significant adverse impact on the Group's operations and main business activities.

Furthermore, the amount of compensation is higher than the independent valuation of the land to be expropriated. The Company will benefit from compensation payments, which will enhance the Group's working capital.

The Company has applied to the Stock Exchange to resume share trading on the Stock Exchange from 9:00 a.m. on December 10, 2025.