China to pay GUH Holdings RM119m for compulsory purchase of Suzhou industrial land

• In a filing on Thursday, GUH said its wholly-owned subsidiary GUH Circuit Industry (Suzhou) Co Ltd has entered into a compensation agreement with the Suzhou High-Tech Zone Shishan Business Innovation District Management Office (SHZ Management Office) for the compulsory disposal of the land measuring a total of 53,324.56 sq metres.

KUALA LUMPUR (Feb 13): Electronic circuit board maker GUH Holdings Bhd (KL:GUH) is transferring its industrial land in Suzhou, China, to the Chinese government, for 195 million yuan (RM119.83 million), as part of the city’s urban development.

In a filing on Thursday, GUH said its wholly-owned subsidiary GUH Circuit Industry (Suzhou) Co Ltd has entered into a compensation agreement with the Suzhou High-Tech Zone Shishan Business Innovation District Management Office (SHZ Management Office) for the compulsory disposal of the land measuring a total of 53,324.56 sq metres.

GUH’s Suzhou venture was valued at RM12.84 million as of Dec 31, 2024. GUH said that the group is expected to secure a pro forma gain of RM95.31 million from the disposal. The compensation amount is expected to be settled in four tranches, GUH said.

“The board believes that the compensation amount is reasonable and is therefore keen to complete this disposal expeditiously,” it said.

The industrial land comprises three industrial factory buildings and five auxiliary buildings. GUH Suzhou operates an office and a factory for its printed circuit board (PCB). Operations ceased in December 2021, after the Chinese government unveiled plans to urbanise the city.

The proposed disposal is subject to shareholders’ approval at an extraordinary general meeting (EGM), to be convened at a later date.

The loss-making outfit expects the proposed disposal to be completed in the first quarter of 2026, barring any unforeseen circumstances and subject to all required approvals being obtained.

Shares of GUH closed unchanged at 37.5 sen on Thursday, valuing the group at RM105.8 million.

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