Lianyang Intelligent Holdings (01561.HK) announced that the land use right transfer agreement entered into between Wanghui Guangzhou (formerly known as Guangzhou Yuanhui) and Zengcheng Company on September 10, 2012, and the land acquisition was completed on or before December 31, 2021. However, despite repeated requests from Wanghui Guangzhou, Zengcheng still failed to complete the necessary registration and approval procedures and obtain the necessary approvals and permits for the land acquisition by the deadline, in violation of the agreement, including failure to facilitate the completion of the State-owned Land use Certificate, the Construction Land Planning license and a number of other approval and permit-related registration procedures.
The Group is studying the costs and benefits of a number of options, including legal action, to protect its legitimate interest in the acquisition of the land. The company considers that the breach of contract and the delay or failure to complete the land acquisition by the other party will not have any material adverse impact on the business operation or financial position of the Group, provided that the Group will take all actions it deems necessary and appropriate, to protect the interests of the company and its shareholders.