The consideration sum includes the “earnest money” of RMB2.5 million, which has already been paid. The balance has to be paid by July 22.
The group says it intends to build a manufacturing facility on the parcel, which will house its service centre and one of its toy manufacturing facilities. This comes after Combine Will International sold certain parcels of land in Shenshan industrial area, Hengli town, also in Dongguan city, announced on Nov 8, 2024.
According to Combine Will’s statement, the term of transfer is 50 years and the property will be delivered to the group before July 12. Once the term expires, Combine Will has to submit an extension application around one year before the date of expiry.
Should there be no renewal of the contract, the buildings, structures, as well as ancillary facilities added within the property, will be owned by the Tianraobu village JSEC upon withdrawal of the land right. DCWTT will not be compensated.
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The construction on the property will have to begin on Oct 12 and be completed by July 12, 2027. If there is any delay of a year or less, DCWTT will have to pay Tianraobu village JSEC liquidated damages at 1% of the transfer price daily till it begins construction.
If the sale consideration isn’t paid by the stipulated date, DCWTT will have to pay Tianraobu village JSEC 0.01% of the overdue amount daily. This will follow the last day of the period for payment specified until the actual date of payment. However, if the payment is overdue for over 60 days, Tianraobu village JSEC will be entitled to terminate the land transfer contract and the earnest money will not be refunded.
The book value and net tangible asset (NTA) value of the Tianraobu property as at June 23, the effective date of the land transfer contract, is RMB12.4 million or $2.2 million.
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The proposed acquisition will be funded by the group’s internal resources.
Shares in Combine Will closed at $1.13 on July 17.
