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PETALING JAYA (Sept 28): GUH Holdings Bhd said its wholly owned subsidiary, GUH Circuit Industry (Suzhou) Co Ltd, has received the final CNY39.0 million (RM23.72 million) compensation payment for the repossession of its state-owned land use rights in Suzhou, China, completing the disposal.
It said in a Bursa Malaysia filing on Monday (Sept 28) that the payment from the Suzhou High-tech Zone Shishan Business Innovation District Management Office had brought total compensation received by GUH Suzhou to CNY195.01 million, or RM114.90 million based on the exchange rates applied to the respective payments. GUH said the disposal is deemed completed.
The transaction involved the repossession of state-owned land use rights over a 53,324.56 sq m industrial site at 588 Changjiang Road in the Suzhou High-Tech Zone. The site contained three factory buildings and five auxiliary buildings, and previously housed GUH Suzhou’s printed circuit board plant. The compensation covered the land use rights, buildings, fixtures, non-relocated assets and landscaping plants.
GUH Suzhou signed the compensation agreement in February 2025. Its PCB plant had ceased operations in December 2021, after the Suzhou government announced urbanisation plans that included the rezoning of industrial areas for future commercial or residential development.
The final tranche had originally been due by June 30, 2026. In April, GUH agreed, at the management office’s request, to extend the payment timeline to Sept 30. The company said the extension would not constitute a breach of the agreements and agreed to waive late-payment interest or penalties for that period.
When it announced the agreement, GUH outlined plans to allocate the proceeds towards new investments, business expansion, working capital, debt repayment and disposal expenses. It also estimated a net pro forma gain of RM95.31 million using the exchange rate and assumptions in its February 2025 filing. The Sept 28 completion announcement did not disclose a final realised gain.
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