Hong Kong IPO disclosure precedents · 4 companies, 4 items
Leased property actually used for purposes inconsistent with the use stated on the land use right certificate or title, risking penalties or challenge to the lease even if the lessee is generally not fined.
Compliance matters are read from filings since 24 August 2026.
As of the Latest Practicable Date, the actual land use of one of our leased properties for business operations was office, which is inconsistent with its approved land use as specified in its land use right certificate of industrial land.
Business · p. 198
As advised by our PRC Legal Adviser, under relevant PRC laws and regulations, it is the lessor (not the tenants) may be ordered to make rectification within a prescribed time limit, and if there are illegal gains, a fine of one to three times the illegal gains capped at RMB30,000 may be imposed on the lessor.
Business · p. 199
In addition, as of the Latest Practicable Date, one of our leased properties currently used for office purposes is legally designated as industrial land in its land use right certificate.
Among our leased properties, the actual usage of one leased property was inconsistent with the usage set out in its title certificate or relevant authorization document.
Business · p. 181
As advised by our PRC Legal Advisor, the inconsistent usage may affect our continued us of such premises.
Business · p. 181
Moreover, upon the completion of our new Wuxi facility, which is currently under construction, we expect this issue to be entirely resolved.
As of the Latest Practicable Date, the actual use of two leased properties did not fit the prescribed scope of usage shown on the relevant ownership certificates.
Business · p. 176
administrative penalties may be imposed on the owners if the properties are leased for usage incompatible with the prescribed scope, and our usage of such leased properties with usage defects may be interrupted. However, as a tenant, we are not subject to any penalties in this regard.
Business · p. 176
two of our leased properties were subject to discrepancies between their actual use and the use descriptions reflected in the relevant property certificates.
As of the Latest Practicable Date, the actual usages of eleven leased properties with an aggregate GFA of approximately 14,502.4 square meters, representing approximately 59.4% of our total leased GFA, were used for purposes inconsistent with their usages as recorded in their property ownership certificates.
Business · p. 222
Based on the above, our PRC Legal Advisor is of the view that we would not be subject to any administrative penalties, but may not be able to occupy and use such leased properties if the lease was challenged by any interested party or if the lessor was penalized by the competent government authority.
Business · p. 222
As of the Latest Practicable Date, the actual usages of certain leased properties were used for purposes inconsistent with their usages as recorded in their property ownership certificates, which may also challenge or interrupt our use and occupation of the relevant properties if the lessors are ordered by the relevant authorities to rectify within a time limit.