Fourace Industries Secures RMB27.3 Million Compensation for Shenzhen Land Lease Variation

An update from Fourace Industries Group Holdings Limited ( (HK:1455) ) is now available.

Fourace Industries Group Holdings Limited has entered into a Compensation Allocation Agreement under which its wholly owned subsidiary, as lessee, will receive RMB27.3 million in cash from Shenzhen Matian Shiwei Cooperative Stock Company Limited for variations to existing lease agreements on part of its Shenzhen factory land, triggered by a government-led redevelopment plan in Gongming Jiangshi District. On the same day, the parties also signed a Supplemental Lease Agreement to formally amend the lease terms to reflect the partial land resumption, with the company stating that the redevelopment and associated adjustments are not expected to have a material impact on its operations or production, and that the transaction, classified as a discloseable transaction under Hong Kong listing rules, follows arm’s length negotiations on compensation for affected buildings and land use.

The most recent analyst rating on (HK:1455) stock is a Buy with a HK$0.24 price target. To see the full list of analyst forecasts on Fourace Industries Group Holdings Limited stock, see the HK:1455 Stock Forecast page.

More about Fourace Industries Group Holdings Limited

Fourace Industries Group Holdings Limited, incorporated in the Cayman Islands and listed in Hong Kong, operates manufacturing facilities including a Shenzhen factory on leased land in Gongming Jiangshi District, Shenzhen, where part of the site is used for staff quarters and warehousing. The group relies on long-term lease arrangements for key production and support facilities in mainland China, making land use rights and related agreements an important element of its operating setup.

Average Trading Volume: 410,096

Technical Sentiment Signal: Strong Buy

Current Market Cap: HK$295.3M

For an in-depth examination of 1455 stock, go to TipRanks’ Overview page.