New City Development Group Limited (New City Dev) has released further details on the pending government requisition of its Guangzhou Changliu Industrial Park and the associated compensation arrangements.

Land requisition status • In May 2025 Guangzhou Changliu Investment Company Limited received formal notice that the industrial park falls within Guangzhou’s New Central Axis redevelopment. • Negotiations with the Haizhu District Land Requisition Office have produced a provisional compensation figure of RMB525.00 million (approximately HK$584.00 million), excluding demolition costs. • An advance payment of RMB270.00 million was received in late October 2025 to settle bank loans, remove mortgages and prepare the site; the sum does not constitute the final compensation agreement. • Guangzhou Changliu has requested a right of first refusal should the land be tendered after redevelopment; this request is undergoing government approval.

Settlement with principal tenant • Guangdong Changna Investment Development Company Limited, lessee of most of the park, claims the 20-year lease (commenced January 2024) cannot continue because of the requisition. • Following legal advice, New City Dev agreed in principle to compensate Guangdong Changna with RMB180.00 million, calculated on the remaining 18-year term (10 years’ rent basis after deductions). • Guangdong Changna has proposed one-year notes at 4% interest for the RMB180.00 million; terms remain subject to a final government compensation agreement.

Balance-sheet implications (pro-forma) • Investment properties would fall by HK$540.00 million (53% of total assets) if the park is acquired. • Assuming HK$584.00 million compensation, net assets would rise roughly 8% and bank liabilities would decline by HK$263.00 million (56% of total liabilities).

Income-statement implications • 2025 unaudited rental and operating income was HK$48.00 million. Loss of the property would cut annual revenue by about 85% but lower related expenses by roughly HK$60.00 million, lifting profit by an estimated 14%.

Planned allocation of compensation (subject to finalisation) 1. RMB270.00 million to repay government advances. 2. RMB180.00 million to settle the notes to Guangdong Changna and partners. 3. RMB15.00 million to repay a subsidiary loan for the Xintang Project. 4. RMB20.00 million for 2026 operating expenses. 5. RMB24.00 million to cover arbitration liabilities to Guangdong Changna. 6. RMB16.00 million as general working capital.

Next steps No legally binding land-requisition agreement has been signed. Dedicated personnel are maintaining dialogue with the Haizhu District authorities. The board considers the settlement the most economical route to safeguard assets and avoid litigation risk. Further announcements will be made once definitive agreements are executed.

Shareholders and potential investors are advised to exercise caution when dealing in New City Dev shares.