GUH

GUH Holdings Bhd has revised the payment schedule for its 195 million yuan (RM119.83 million) disposal of industrial land in Suzhou, China, following a delay linked to new documentation requirements imposed by Chinese tax authorities.

In a filing with Bursa Malaysia, the group said its wholly owned subsidiary, GUH Circuit Industry (Suzhou) Co Ltd, has signed a supplementary agreement with the Suzhou High-tech Zone Shishan Business Innovation District Management Office to amend the terms of the original compensation agreement signed in February.

The disposal involves the repossession of GUH Suzhou’s state-owned land use rights by the local government, in line with China’s land administration laws.

While the compensation amount remains unchanged at 195.01 million yuan, the parties have agreed to extend the payment timeline due to delays in GUH Suzhou’s land return application, which is a required document to trigger the initial payment.

GUH said the delay arose from recent changes in the Chinese tax authority’s requirements for Land Value-Added Tax (LVAT) exemption applications.

As a result, the expected payment milestones, originally set to begin in April 2025, have now been pushed to as late as June 2026.

The first payment is now expected by the end of September 2025, with subsequent instalments to follow through the first half of 2026.

Each payment may also be made in multiple tranches.

The group stressed that the revised agreement does not alter the financial effects of the disposal as previously disclosed in its circular to shareholders.

The key commercial terms of the deal also remain intact, as approved at GUH’s EGM on May 26, 2025.

GUH expects the disposal to be completed in the second half of 2026, barring unforeseen circumstances. — TMR

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