SHUI ON LAND (00272.HK): Foshan Plot 7 Compensation Reset at RMB 800mn; Plot 8 at RMB 635.69mn Plus Sale Price

NewTimeSpace News: On 23 October 2026, Shui On Land Limited (the "Company") announced that it referred to its announcement dated 9 July 2021 and its circular dated 24 September 2021. These documents concerned the resumption of Plot 7 and Plot 8 under the land use right reserve agreements entered into between the Group, the Foshan Chancheng District Land Reserve Centre and the Foshan Chancheng District Zumiao Sub-district Office. In view of changes in the PRC property market since the reserve agreements were entered into, the Land Reserve Centre and the Sub-district Office held negotiations with Foshan Rui Fang and Foshan Rui Kang Tian Di (each an indirect wholly-owned subsidiary of the Company). On 23 October 2026, they entered into supplemental agreements: Foshan Rui Fang entered into the Plot 7 land use right reserve supplemental agreement, amending the cash compensation for the return of Plot 7 to RMB 800,000,000 (equivalent to approximately HK$933,532,000); and Foshan Rui Kang Tian Di entered into the Plot 8 land use right reserve supplemental agreement, amending the cash compensation for the return of Plot 8 to an amount equal to RMB 635,690,000 (equivalent to approximately HK$741,797,000) plus the actual sale price of Plot 8.

The announcement disclosed that Plot 7 comprises a site on the eastern side of Jianshe Street in Chancheng District, Foshan, with a total site area of approximately 8,109.35 square metres, zoned for office and commercial use and still undeveloped as at the date of the announcement; Plot 8 comprises a site on the southern side of Chengmentou Road in Chancheng District, Foshan, with a total site area of approximately 16,385 square metres, permitted for office and commercial use and likewise undeveloped. On payment, Foshan Rui Fang received in two tranches in December 2024 and January 2025 part of the original consideration for the resumption of Plot 7 amounting to approximately RMB 870,000,000 (equivalent to approximately HK$1,015,217,000), which will be applied towards the adjusted Plot 7 compensation. The excess of RMB 70,000,000 (equivalent to approximately HK$81,684,000) over the adjusted Plot 7 compensation will be refunded to the Land Reserve Centre within 60 days from the date on which the successful bidder pays the first tranche of consideration for part of Plot 7 (with an area of approximately 7,394.72 square metres). That part of Plot 7 was successfully bid by an independent third-party property developer in October 2026. Plot 8 is expected to be offered for public sale, and the Land Reserve Centre shall pay RMB 635,690,000 within 90 days from the date of signing of the Plot 8 supplemental agreement, with the remaining amount payable after the sale of Plot 8 on the same payment schedule and in the same proportion, within 60 days after the successful bidder pays each instalment of the sale price.

The Company stated that the carrying amounts of Plot 7 and Plot 8 as at 30 June 2026 were approximately RMB 650,000,000 (equivalent to approximately HK$758,495,000) and approximately RMB 900,000,000 (equivalent to approximately HK$1,050,224,000) respectively. After taking into account the potential taxes and other costs to be borne by the Group in connection with the land resumptions, and given that the auction date and sale price of Plot 8 have not yet been determined, the Company currently expects that the Group will not record a material gain or loss, and that the net proceeds will be used to repay the Group's outstanding debts and for general working capital. On the Listing Rules, as the highest applicable percentage ratio for the land use right reserve agreements exceeds 25% but is less than 75%, those agreements constitute a major transaction of the Company subject to the reporting, announcement, circular and shareholders' approval requirements; under Rule 14.36, the supplemental agreements constitute a material alteration of the terms of those agreements and the Company must re-comply with all applicable requirements under Chapter 14. The Company has obtained written approval under Rule 14.44 from Shui On Properties Limited, Shui On Investment Limited and New Rainbow Investments Limited (all controlled by Shui On Company Limited and together forming a closely allied group of shareholders), holding 1,725,493,996, 2,756,414,318 and 29,847,937 shares respectively, representing approximately 56.21% of the issued share capital in aggregate, so no extraordinary general meeting is required to consider the supplemental agreements; a circular containing further details of the supplemental agreements is expected to be despatched on or before 13 November 2026 for information only.