Sinoma Science & Technology property sale set to boost net profit by 11.7bn yuan

Sinoma Science & Technology announced that its wholly-owned subsidiary, Suzhou Non-Metallic Minerals Industrial Design & Research Institute Co., Ltd., will have its property at Sanxiang Road, Suzhou, acquired by the People's Government of Gusu District, Suzhou City. The acquisition, driven by public interest, involves the recovery of land use rights and the building, referred to as "Sanxiang Road Building." Suzhou Non-Metallic Minerals Research Institute is expected to receive compensation totaling 18,140.86 million yuan.

The transaction, which includes monetary compensation and supplementary agreements for business license subsidies and rent-clearing losses, is projected to increase Sinoma Science & Technology's net profit attributable to parent company by approximately 11,742.92 million yuan. This amount exceeds 10% of the company's net profit from the previous year. The company's board of directors approved the resolution with seven votes in favor.

The property, valued at 14,249.95 million yuan by market comparison method, had a book net value of 1,104.64 million yuan as of August 31, 2025, reflecting a significant appraisal increase. The compensation will be used for the company's daily operations, positively impacting its financial performance. The transaction also includes personnel arrangements for six employees, ensuring normal production and operations will not be affected.