ITC Properties (00199) acquires a land parcel in Nantong, Jiangsu worth 2 billion RMB, planning to develop a green smart computing center and related businesses.

ITC PROPERTIES (ITC Properties Group Limited, 00199) announced that on July 2, 2026 (after trading hours), ITC Strategic Holding, a wholly-owned subsidiary of the company, entered into an agreement with Profit Tycoon, whereby: (a) ITC Strategic Holding (as the buyer) has conditionally agreed to acquire, and Profit Tycoon (as the seller) has conditionally agreed to sell, the sale shares; and (b) Profit Tycoon has conditionally agreed to transfer, and ITC Strategic Holding has conditionally agreed to acquire, the sale loan. The total consideration of HK$337 million will be settled as follows: (i) HK$170 million through the issuance of consideration notes; (ii) HK$114 million through the transfer of ITC Finance's entire issued share capital from a subsidiary of the company, ITC Property Management, as the seller, to Finest Edge, as the buyer; and (iii) HK$52.55 million in cash. Upon completion of the acquisition, ITC Strategic Holding will hold 20% of the issued share capital of PYI Investment. According to the terms of the agreement, following completion, ITC Strategic Holding and Profit Tycoon, as shareholders of PYI Investment, will enter into a shareholders' agreement with PYI Investment, specifying the rights and obligations of the parties, including the right of ITC PROPERTIES to appoint directors to the board of PYI Investment to promote the implementation of various development procedures in the area. As of the date of this announcement, PYI Investment owns two direct wholly-owned subsidiaries, namely (i) Glory Well Development, and (ii) Glory Well Property Investment Limited. Glory Well Development holds a 75% stake in Yong Tong Kai Investment. According to valuation reports and shareholding proportions disclosed in the announcement, Yong Tong Kai Investment's land parcels are valued at approximately RMB 2 billion. The core assets of the PYI Investment group are multiple land parcels held through the Yong Tong Kai Investment group, located in the Xiaoyangkou area of Rudong County, Jiangsu Province. This area is situated along the eastern coast of China with excellent geothermal geological conditions. As of the date of this announcement, Yong Tong Kai Investment group legally holds eight land use rights plots, with a total land area of approximately 11 million square meters, including an unused coastal land plot of approximately 10.55 million square meters in Yangkou Town. The area has successfully developed four high-output geothermal hot spring wells, with Yangshen 1 well producing 5,360 cubic meters of water per day at a temperature of 108 degrees Celsius, setting a record in the Yangtze River Delta region. Leveraging high-quality heat sources such as Yangshen 1 well (108C) and Geothermal 2 well (92C), there is another heat source waiting to be developed at a depth of 4,500 meters with a reservoir temperature of over 150C, which can be used for mature flash steam power generation technology. By designing and constructing a geothermal power generation system, it can meet the megawatt-level geothermal power generation demand in the region. Due to the natural advantages of geothermal power generation, which is not affected by climate or day-night cycles, it can provide stable, low-carbon base-load electricity supply for high-energy-consuming infrastructure in the region, effectively reducing electricity costs and significantly reducing carbon emissions. In addition, Rudong, Jiangsu is an important clean energy base in the Yangtze River Delta, forming a cluster of core assets for various green energy sources including geothermal, photovoltaic, offshore wind power, and liquefied natural gas (LNG). With the regional layout of offshore wind power and tidal flat photovoltaics, and the supporting National Yangkou Port LNG energy hub, it has created the largest national-scale demonstration project integrating power generation, hydrogen production, and energy storage to build a variety of clean energy sources synergistic complementary power supply systems. The synergy between unused land and various green resources in the region provides unique conditions for the construction of large-scale green artificial intelligence computing infrastructure. Benefiting from its location in the northern wing of the Yangtze River Delta and its proximity to the core AI demand market in Shanghai, this region has been connected to the Yangtze River Delta optical cable network system, which effectively reduces data latency with a shorter physical transmission distance, fully meeting the rigid requirements of AI computing and other businesses for low latency. By building an AI computing center in this area, in line with the national development guidelines for coordinated development of computing and electricity, the relevant core assets under the PYI Investment group have outstanding long-term strategic value and growth potential. Relying on the high-quality geothermal resources, as well as green energy resources such as wind power and photovoltaics in the region, and its core location in the computing supply of the Yangtze River Delta, this region plans to build a green AI computing center. After the acquisition is completed, the company will appoint directors to the board of PYI Investment group to promote the implementation of various development procedures in the area. According to the shareholders' agreement disclosed in the announcement, leveraging the land parcels held by the Yong Tong Kai Investment group and utilizing geothermal and green electricity resources to create a geothermal power generation and cooling integrated AI computing center, providing a closed-loop green energy comprehensive solution, constructing a geothermal + computing synergistic development model, building a zero-carbon green computing benchmark demonstration site, and ensuring that no less than 2 million square meters of land will be used to build AI computing centers and develop new businesses.