Gelonghui July 24th 丨Lisi Group Holdings (00526.HK) announced that in July 2023, Ningbo Xinjiangxia Supermarket Chain Co., Ltd. (“Ningbo Xinjiang Building”), an indirect wholly-owned subsidiary of the Company, received a notice from the demolition office in Qiuai Town, Yinzhou District, Ningbo City (“Government Notice”). According to the government notice, Ningbo Xinjiangsha was informed that its properties in Qiu'ai Town are located at (a) position respectivelyuntoShengmo Road, Qiuai Town, Yinzhou District, Ningbo City, with a land area of about 3,087.6 square meters (“land 1”); and (b) two plots of land with a land area of about 757.98 square meters (“land 2”, together with land 1, collectively referred to as “such land”) will be taken back by the local government of Yinzhou District, Ningbo City, China (“land reclamation matters”).
On July 24, 2023, Ningbo Xinjiangsha and Ningbo Yinzhou District Housing Demolition Service Center (“Demolition Center”) (which is a department of the Qiu'ai Town Demolition Office (“Demolition Office”), Yinzhou District, Ningbo City (“Demolition Office”) signed a land takeover agreement on the withdrawal of land use rights for Land 1 and all buildings, structures and ancillary objects located there (“Land 1 Restitution Agreement”).Compensation plus land 1 incentive and additional funds totaled RMB 44.9409 million.
On the same day, Ningbo Xinjiangxia signed another land reclamation agreement with the Demolition Office, which relates to the land use rights and location of the revocation of land 2untoAll buildings, structures and attachments of the Department (“Land 2 Restitution Agreement”, together with the Land 1 Restitution Agreement”, collectively referred to as the “Land Restitution Matters Agreement”). According to these land revocation agreements, Ningbo Xinjiangsha will return land use rights to such land to the local government.Compensation plus 2 land incentives totals RMB 129 million.
Considering the total compensation of approximately RMB 174 million, it is anticipated that the Group will record an estimated net income of approximately RMB 131 million before tax due to land recovery matters. The estimated net proceeds do not take into account any costs and expenses incurred in connection with land reclamation matters and relocation, as well as any Chinese corporate income tax or other related tax expenses that will or may be collected.