On November 12, Kerry Construction Co., Ltd. announced that on November 12, 2021, it was announced by the relevant authorities on the website of the people's Government of Huangpu District, Shanghai. Zhuomiao Co., Ltd., a wholly-owned subsidiary of Kerry Construction Co., Ltd. has been identified as the main body of the selection phase of 198-1, 200-3, 064-01, 065-01, 066-01, 067-01, 070-01, 071-01, 072-01, 073-01 and Jiangxi South Road, Shandong South Road, Shengze Road and 070-02 Underground Space Parcel Project in Huangpu District, and to participate in the subsequent transfer of land use rights.

Kerry Construction said that the results of the transfer of land use rights and the details of the project would be publicized by the relevant land management departments in accordance with the arrangements for the subsequent transfer of land use rights.

According to the notice, no legally binding contract has been entered into for the site or the project, and if the acquisition of the site can be carried out, the transaction may constitute a major transaction for the company. however, it is also an eligible property acquisition as defined in Rule 14.04 (10C) of the listing rules.

The notice shows that the site is located in 198-1, 200-3, 064-01, 065-01, 066-01, 067-01, 070-01, 071-01, 072-01, 073-01 and Jiangxi South Road, Shandong South Road, Shengze Road, 070-02 Underground Space Parcel Historical style Protection Project.

According to the inquiry, some local media reports revealed that the total relocation cost of the site exceeded 20 billion, and the total investment is expected to be nearly 40 billion yuan.