China Boton sells land in Shenzhen for $2.27bn government resumption deal

China Boton Group Company Limited has entered into a Land Resumption Agreement for the surrender of land and land use rights in Nanshan District, Shenzhen. Its indirect wholly-owned subsidiary Shenzhen Boton signed the agreement with the local authority on December 7, 2025, involving a cash compensation of 2,271,913,552 yuan. This transaction constitutes a very substantial disposal, requiring shareholders' approval.

The proposed land, with an aggregate site area of approximately 64,662 square meters, is being resumed for the Xili high-speed rail hub and related projects. China Boton expects to record an unaudited pre-tax gain of approximately 2,380,666,871 yuan from the land resumption, inclusive of an early completion bonus. The net proceeds, estimated at 1,768,446,850 yuan, will be used to repay bank borrowings (1,250,000,000 yuan) and for general working capital (518,446,850 yuan).

Trading in the company's shares, halted on December 8, 2025, is set to resume on December 10, 2025. The board believes the land resumption will not materially impact the group’s operations, as production lines for its business segments are no longer maintained on the proposed land.