Skyworth Digital (HKG:0751) said that it has received in-principle consent in relation to a change of use of the land in Shenzhen at which its Gongming Plant is located. The 114,916-square-metre land has a total construction area of 174,997 square metres.

The Gongming Plant is currently used for manufacturing certain television products for overseas market. The plant's production facilities are expected to be relocated to the group's Shiyan Plant, which is also in Shenzhen, within this year.

Most of the group's production facilities have been relocated from the Gongming Plant to the Shiyan Plant, the group's largest production plant.

Under the city upgrading programme of the Shenzhen government, in-principal consent has been granted by the relevant authority to change the use of the Gongming Plant land from industrial to a mix of office, commercial, residential and public facility uses with a new construction area of 423,290 square metres. Based on preliminary assessment, the total investment for this redevelopment project could potentially reach RMB2 billion (HK$2.5 billion) with a funding requirement of RMB950 million (HK$1.2 billion).

Skyworth Digital, in view that property development is not its core business, and the redevelopment project will likely require the group to allocate significant financial resources for funding, intends to seek an appropriate party to be its partner for the redevelopment project in order to reduce the risk and the financial burden which may be involved.

Source:chinesestock