China Asia Valley Details Phased R&D and Factory Development Backed by Flexible Financing

An announcement from China Asia Valley Group Limited ( (HK:0063) ) is now available.

China Asia Valley Group Limited has provided further details on its planned capital injection into You Wei, clarifying the development blueprint for a parcel of land in the PRC that will host research and development buildings, a plant, three factory blocks, a dormitory and a basement totaling about 21,000 square meters. Construction will be rolled out in five phases over up to five years, with each phase to be rented out separately based on tenant demand.

The company has committed to invest RMB77.65 million in the land within five years, with an estimated RMB120 million earmarked for the initial construction phase, while subsequent spending will hinge on leasing progress. Management notes that the land, valued at roughly RMB120 million, can be pledged for bank financing, and that supportive responses from PRC banks and a loan commitment from the controlling shareholder provide funding flexibility, while a Shenzhen-based subsidiary will oversee and closely monitor project costs and progress.

The most recent analyst rating on (HK:0063) stock is a Hold with a HK$0.06 price target. To see the full list of analyst forecasts on China Asia Valley Group Limited stock, see the HK:0063 Stock Forecast page.

More about China Asia Valley Group Limited

China Asia Valley Group Limited, incorporated in Bermuda and listed in Hong Kong, operates through subsidiaries in Mainland China, including Zhongyan Jianshe Construction (Shenzhen) Co., Limited. The group is involved in property development and construction-related activities, with a focus on developing industrial and research facilities for tenant use.

Average Trading Volume: 106,706

Technical Sentiment Signal: Strong Sell

Current Market Cap: HK$349.4M

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