Hilong Holding Limited Announces Major Industrial Land Acquisition in Jiangsu: Strategic Expansion in Marine Engineering

Key Highlights

• Discloseable Transaction: Hilong Holding Limited, through its wholly-owned subsidiary Hilong Marine Engineering (Hong Kong) Limited (“Hilong Marine”), has entered into investment agreements to acquire up to 500 mu (approx. 333,000 square meters) of industrial land in the Lvsigang Economic Development Zone, Qidong City, Jiangsu Province, China. The consideration for the land at starting bid prices is RMB 68 million.
• Two-Phase Land Acquisition: The acquisition will occur in two phases—Phase One for approximately 300 mu (RMB 40.8 million) and Phase Two for approximately 200 mu (RMB 27.2 million). Both phases are subject to the outcome of a public listing-and-bidding process. The land use term is 50 years, designated for marine engineering equipment manufacturing.
• New Project Development: The land will be used for the construction of the “Hilong Marine Engineering High-End Equipment Research, Manufacturing and Operation & Maintenance Service Base,” targeting advanced research, manufacturing, and service capabilities for offshore oil and gas engineering products and services.
• Strategic Significance: The location offers deep-water port access and proximity to Shanghai, providing major logistical advantages for both domestic and international operations. The investment aligns with Hilong’s strategy to enhance its EPCIC (Engineering, Procurement, Construction, Installation, and Commissioning) capabilities and expand its presence in global offshore markets.
• Timeline & Conditions: Construction for each phase is planned to begin within 6 months of successful bidding and to be completed within 18 months. If Hilong fails to win the public bid, the agreement for that phase becomes void.
• Regulatory & Shareholder Implications: The transaction qualifies as a discloseable transaction under Chapter 14 of the Hong Kong Listing Rules, given one or more percentage ratios exceed 5% but are less than 25%. It is subject to reporting and announcement requirements but does not require shareholder approval unless otherwise specified.
• Uncertainties & Risks: Success is contingent on winning the public bidding process and securing all necessary government approvals (project establishment, environmental, planning, construction). There is no guarantee that the project will proceed as planned, which may impact the company’s future operations and share value.

In-Depth Details for Investors

Investment Agreements Summary

On 29 April 2026, Hilong Marine and the Management Committee of Jiangsu Qidong Lvsigang Economic Development Zone signed two investment agreements. The agreements detail the process for Hilong to participate via a project company (to be established within 30 days) in a government-run public bidding for the designated industrial land. The total starting bid price for the entire 500 mu is RMB 68 million (RMB 136,000 per mu). The acquisition is split into two phases, and if Hilong’s project company fails to secure the land in either phase, the respective agreement becomes null and void.

• Phase One: ~300 mu, RMB 40.8 million (starting bid price)
• Phase Two: ~200 mu, RMB 27.2 million (starting bid price)

The land is classified for marine engineering equipment manufacturing (C3737) for a 50-year term. Construction of Phase One is targeted to begin within 6 months after successful bidding, with full completion and operations within 18 months. The same applies to Phase Two. The agreements are subject to price adjustments in the definitive agreement upon completion of the bidding process.

Project Overview

The new facility, the “Hilong Marine Engineering High-End Equipment Research, Manufacturing and Operation & Maintenance Service Base,” will focus on:

• R&D, manufacturing, and sales of marine engineering products (offshore platforms, modules, jackets, electrical and instrumentation products, skid-mounted and subsea products)
• Full EPCIC services for platforms, modules, and jackets
• Oilfield equipment operation, maintenance, and related technical services

This strategic development is intended to strengthen Hilong’s offshore engineering sector capabilities, improving service to clients globally (Europe, America, Southeast Asia, Middle East, Africa).

Strategic Rationale and Potential Shareholder Impact

The Board believes the acquisition is aligned with Hilong’s long-term strategy to reposition as an integrated marine engineering and EPCIC service provider. The site’s proximity to major ports and Shanghai is expected to yield significant logistical advantages, enhancing both domestic and export operations.

Potential Price Sensitivities and Risks:

• Conditionality: The project depends on winning the public bidding process and obtaining multiple regulatory approvals. Any failure in these processes can void the agreements and delay or cancel the project.
• Execution Risk: Delays or inability to commence or complete the project could impact the company’s strategic objectives and future earnings.
• Market Expansion: If successful, the new facility could significantly boost Hilong’s offshore engineering business and global competitiveness, potentially affecting its valuation and share price.

About the Parties

• Management Committee: The government body administering the Lvsigang Economic Development Zone, Qidong City, PRC.
• Hilong Group: A leading manufacturer and distributor of oil and gas drilling equipment, also providing oilfield and offshore engineering services globally, with business segments in drill pipes, oilfield services, and offshore engineering.
• Hilong Marine: An indirect wholly-owned subsidiary of Hilong Holding Limited, established in Hong Kong in 2013, focused on offshore engineering services.

The Management Committee and its ultimate beneficial owners are independent third parties, not connected persons to Hilong or its affiliates.

Disclaimer

This article is for informational purposes only and does not constitute investment advice. The transaction described is subject to various uncertainties, including public bidding outcomes and regulatory approvals. Investors are advised to exercise caution and consult with a financial advisor before making any investment decisions related to Hilong Holding Limited.

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