【Shengyue-KY】Announcement by Subsidiary Jinjiang Chengchang Footwear Co., Ltd. on Land Use Rights Recovery by Jinjiang Municipal Government
The Jinjiang Municipal Government has reclaimed three parcels of land use rights from Shengyue-KY's subsidiary, Jinjiang Chengchang Footwear Co., Ltd. The company has fully impaired the assets and is currently negotiating compensation terms.
📋 Article Processing Timeline
- 📰 Published: June 15, 2026 at 09:00
- 🔍 Collected: June 16, 2026 at 17:00 (32h 0m after Published)
- 🤖 AI Analyzed: June 16, 2026 at 18:34 (1h 34m after Collected)
1. Date of Event: June 15, 2026
2. Company Name: Jinjiang Chengchang Footwear Co., Ltd.
3. Relationship with Company (Parent or Subsidiary): Subsidiary
4. Mutual Shareholding Ratio: Not applicable
5. Reason for Occurrence: The Jinjiang Municipal Government has reclaimed three parcels of land use rights located in Lianyu Community, Qingyang Street, belonging to Jinjiang Chengchang Footwear Co., Ltd.
6. Response Measures: On January 20, 2026, the Jinjiang Municipal Government reclaimed three parcels of land use rights located in Lianyu Community, Qingyang Street, held by Jinjiang Chengchang Footwear Co., Ltd., and the municipal real estate registration center canceled the real estate ownership certificates. The consolidated company had already recognized a 100% impairment loss on these three land use rights as of December 31, 2025, amounting to 193,719 thousand yuan, and derecognized the assets in the first quarter of 2026. Compensation for the land use rights recovery will be determined through a contract to be signed with the government; as of March 31, 2026, no such contract has been finalized. The company will continue to communicate with local government authorities to clarify the details of the land recovery and related compensation arrangements. Subsequent actions will be taken based on evaluation results and relevant legal provisions, with timely disclosure of information to protect the interests of the company and its shareholders.
7. Other Matters to be Disclosed: None
2. Company Name: Jinjiang Chengchang Footwear Co., Ltd.
3. Relationship with Company (Parent or Subsidiary): Subsidiary
4. Mutual Shareholding Ratio: Not applicable
5. Reason for Occurrence: The Jinjiang Municipal Government has reclaimed three parcels of land use rights located in Lianyu Community, Qingyang Street, belonging to Jinjiang Chengchang Footwear Co., Ltd.
6. Response Measures: On January 20, 2026, the Jinjiang Municipal Government reclaimed three parcels of land use rights located in Lianyu Community, Qingyang Street, held by Jinjiang Chengchang Footwear Co., Ltd., and the municipal real estate registration center canceled the real estate ownership certificates. The consolidated company had already recognized a 100% impairment loss on these three land use rights as of December 31, 2025, amounting to 193,719 thousand yuan, and derecognized the assets in the first quarter of 2026. Compensation for the land use rights recovery will be determined through a contract to be signed with the government; as of March 31, 2026, no such contract has been finalized. The company will continue to communicate with local government authorities to clarify the details of the land recovery and related compensation arrangements. Subsequent actions will be taken based on evaluation results and relevant legal provisions, with timely disclosure of information to protect the interests of the company and its shareholders.
7. Other Matters to be Disclosed: None
FAQ
Is the land recovery legally justified?
Under Chinese law, local governments can reclaim land use rights for urban planning or public interest, provided proper procedures are followed.
What is impairment accounting?
Impairment is an accounting process to reduce the book value of an asset when its market value declines. 100% impairment means the asset is considered worthless.
On which Taiwan exchange is Shengyue-KY listed?
Shengyue-KY is listed on the Taipei Exchange (TPEx) under stock code 4444.