As of the Latest Practicable Date, two of our leased properties, with an aggregate GFA of approximately 286 sq.m. accounting for less than 1% of the total GFA of our properties in use and used for our staff accommodation, are situated on allocated land and the lease of such properties had not been approved by the competent authorities as required under applicable PRC laws and regulations.
Business · 第 175 页
As advised by our PRC Legal Advisor, if the competent authorities determine that the relevant leases are void, we would not be subject to any administrative penalties with respect to these properties, but our lease may be affected, and, as a result, we may be required to vacate the premises, in which case we would be entitled to request the return of prepaid rent.
In 2024, our Company entered into a lease agreement with Shaoguan Resources for properties with an aggregate land area of approximately 3,653,806.13 sq.m., for a term from 1 January 2024 to 31 December 2026, at a monthly rent of RMB2.49 million.
Business · 第 145 页
As at the Latest Practicable Date, Shaoguan Resources had not obtained the approval of the competent authorities for the leasing of the allocated land.
Business · 第 145 页
Guangdong Rising Holdings, as the holding company of Shaoguan Resources, submitted an application to the Guangdong Provincial Department of Natural Resources on 26 August 2026 for approval of the overall land disposition plan, including conversion by way of capital contribution and authorized operation.
广西玉柴船电动力股份有限公司Guangxi Yuchai Marine and Genset Power Co., Ltd.
承租划拨土地及地上房产未取得主管部门批准
As of the Latest Practicable Date, the Leased Land and three out of eight land parcels in Yulin with an aggregate gross floor area of 93,644.1 sq.m. were allocated land, the leasing of the Leased Land and the properties built on such three land parcels had not obtained valid approvals from the local land and housing administrative authorities.
Business · 第 157 页
As of the Latest Practicable Date, the land parcel we leased was allocated land and certain of our leased properties were also located on allocated land.
Risk Factors · 第 39 页
GYMCL, our Controlling Shareholder, has undertaken to indemnify us if we were to incur any reasonable costs, charges, expenses, penalties and other liabilities in connection with the abovementioned legal defects.
广西玉柴船电动力股份有限公司Guangxi Yuchai Marine and Genset Power Co., Ltd.
大部分租赁房产未取得有效产权证明
As of the Latest Practicable Date, we had not been provided by the relevant lessors with valid title certificates for the leased properties with an aggregate gross floor area of 111,471.7 sq.m. located on seven out of eight land parcels in Yulin as well as the properties located on the Leased Land, primarily because the construction application procedures for relevant leased properties were incomplete.
Business · 第 157 页
As advised by our PRC Legal Advisor, we, as the lessee, will generally not be subject to administrative penalties for leasing and using such properties for which valid title certificates have not been obtained.