Chu Kong Petroleum to sell Yunfu land for $3.8m

Chu Kong Petroleum and Natural Gas Steel Pipe (HKEX: 1938) announced the sale of a land parcel in Yunfu, Guangdong Province, China, to the Yunfu City Yun'an Land Reserve Centre. The agreed consideration for the disposal is RMB30.25 million, to be paid in installments through June 2027. The land, originally acquired in 2021 to establish a steel pipe production line, has remained undeveloped due to unresolved infrastructure conditions. The company expects to record a pre-tax gain of approximately RMB1.25 million from the transaction. The proceeds will be used for general working capital. The company stated that the transaction is considered beneficial, as it allows them to reduce investment risks and improve asset utilization efficiency.