CREALITY (03388) has announced its decision to participate in a public tender process aimed at securing the land use rights for a plot located in the Huanan Logistics Park, Minzhi Subdistrict, Longhua District, Shenzhen, Guangdong Province, China. This proposed land acquisition is part of the company's broader initiative to establish a new headquarters and innovation center for its additive manufacturing operations.
The project is designed to consolidate the group's research and development, product innovation, application development, demonstration, customer service, and corporate management functions related to its additive manufacturing business. Should the company emerge as the successful bidder for the proposed land acquisition, it will be required to adhere to all relevant land planning, construction, and other applicable regulations before moving forward with the project.
As of the date of this announcement, no formal agreements or contracts have been entered into with the relevant government authorities regarding the proposed land acquisition. The transaction remains contingent upon the outcome of the public tender process and the final approval of the pertinent government departments.
The group is planning to construct a new additive manufacturing headquarters and research and development innovation base on the land, which will serve as a cornerstone for supporting its business expansion, technological innovation, operational improvements, talent recruitment, industry collaboration, and long-term growth trajectory. The board believes that the proposed transaction aligns with the company's development strategy and long-term business objectives.
The consideration for the proposed land acquisition will be determined based on the market price of the relevant parcel, which will be assessed by a non-profit valuation institution organized by the municipal-level natural resources authority in accordance with applicable regulations. Consequently, the board considers the proposed land acquisition to be fair and reasonable, and in the best interests of the company and its shareholders as a whole.