Tianhong Textile (02678.HK) Intends To Purchase Vietnam'S Block From Chairman Hong Tianzhu To Build A Factory Building.

02678.HK announced that in December 23, 2019, the company contracted an indirect wholly owned subsidiary of Tianhong knitting and Haihe industrial zone to acquire a construction site in the Haihe industrial area of Haihe River, Guangning Province, Haihe industrial area, with a land area of about 512 thousand and 400 square meters and its infrastructure built. The first phase of the land area is about 249. The cost of 904.5 square meters is RMB 106 million yuan.

According to the agreement, the Haihe industrial area will be delivered to the Tianhong knitting by the end of December 2019 or other dates of the contracting parties. The second phase will be delivered at the end of December 2021 or before, but only after the completion of the second phase of the plot and the vacancy tube from the Haihe County Land Development Center to acquire the second phase of the plot will be realized. Haihe industrial zone will undertake to complete infrastructure and roads around the site.

It is reported that the Haihe industrial area was established in Vietnam. Zhu Yongxiang, the chairman and executive director of Hong Kong Tianzhu and the group's joint chief executive officer and executive director, respectively, had 78% and 22% interest respectively. Haihe industrial area is mainly engaged in infrastructure development.

Earlier, a group of Affiliated Companies has acquired several blocks of Haihe industrial area to build factories for producing textile products. After the reorganization of China's knitted fabric dyeing business, the Group intends to establish a large scale knitted fabric dyeing production base in Vietnam. Therefore, the group decided to purchase the land for building factories and expand the investment scale of the group in this field.