Zhitong Finance App News, Dali Group (00029) issued an announcement. On December 14, 2023, Dynamic (B.V.I.) Limited Dali Co., Ltd. (Dali Company, Zhenhua shareholders and wholly-owned subsidiary of the company) and the Nanshan Administration (Planning Administration) of the Shenzhen Municipal Bureau of Planning and Natural Resources (Planning Administration) signed a concession contract for state-owned construction land use rights in Shenzhen. At the same time, Zhenhua's joint venture partner also signed a Shenzhen state-owned construction land use rights contract with the Planning Administration and agreed to sell K709-0004 plot to the joint venture partner.

On December 14, 2023, Dulli and the Planning Authority also signed a supplementary agreement to the group land concession contract, confirming that after the signing of the group land concession contract and the joint venture partner land concession contract, compensation issues relating to existing land have been completely resolved, and Dulli has no right to file any other compensation claims with the government.

The Planning Administration, Dali Company, and Shenzhen Dali Real Estate Development Co., Ltd. (Shenzhen Dali Real Estate, a wholly-owned subsidiary of the company established in accordance with Chinese law) signed a second supplementary agreement to the Group's land concession contract on December 15, 2023. Based on this, the Planning Administration agreed to change the land use rights for the land distributed by the Group from Dali to Shenzhen Dali Real Estate.

The new land is divided into two plots of land (that is, land allocation by the group and land allocation by the joint venture partner), and the land allocation is the result of fair negotiations between the group and the joint venture partner and the Planning Authority. The Group and the joint venture partner have agreed that neither party is required to pay any compensation to the other party for this land allocation.

The land distributed by the Group (K709-0003) is located east of Houhai Avenue, south of Shekou New Street, north of Wanghai Road and west of land distributed by joint venture partners, and covers an area of about 65,000 square meters, while the developable construction area is about 179,000 square meters (including 143,000 square meters of residential development, 29,000 square meters of commercial developable construction area and other supporting facilities). The land distributed by the joint venture partner (K709-0004) is located west of the center of the city, south of Shekou New Street, north of Wanghai Road and east of the land distributed by the group, and covers an area of about 44,000 square meters, while the developable construction area is about 217,000 square meters (including 126,000 square meters of residential development area, 81,000 square meters of commercial development area and other supporting facilities). Both parcels of land can be developed for multiple uses. Land allocation by the Joint Venture Partner and Construction Land Planning Permits for Land Allocation by the Group have been issued by the Planning Authority to the Joint Venture Partner and the Group in August 2023 respectively.

The announcement stated that with the development and development of the area surrounding the land distributed by the Group, the potential future development value of the land distributed by the Group will benefit the Group and further contribute to the company's business performance. The terms of the Group's land concession contract are fair and reasonable, and conform to the overall interests of the company and shareholders.