Luen Fat Shares (002394): Signed Memorandum Of Understanding With Indonesian KIK

In April 8th, 002394.SZ announced that the company and Indonesian PT. Kawasan Industri Kendal (Kendall Industrial Park Limited, hereinafter referred to as "KIK") signed a memorandum of understanding on the purchase of land for investment in the textile and garment industry in the Indonesian Kendall Industrial Park on April 4, 2019.

The two sides have invested in the purchase of land in the Kendall Industrial Park for textile and garment industry, and KIK has provided cooperation intentions for the company to provide various infrastructure services, to win preferential policies for the company, to assist companies in handling various formalities, to ensure sufficient conditions for the production and operation of the company, and exclusive planning in the park.

According to the agreement, the two sides will begin further discussions on land purchase in May 10, 2019.

The agreement shall come into force on the date of signing, and shall remain fully valid within two years, but any party may terminate the agreement after a written notice of not less than six months.

The agreement can be amended according to the specific agreements signed by both parties. Any provision is invalid or unenforceable, and the validity of other provisions will not be affected.

According to the announcement, the memorandum of understanding signed by the company and KIK conforms to the strategic development plan of the company to adjust the layout of production. The signing of the agreement is conducive to the initial investment agreement of the company in the Kendall area of Indonesia.

The investment in Kendall area of Indonesia will help to strive for cooperation with foreign strategic customers, shorten the delivery date and consolidate the competitiveness of the company's products.

The implementation of the investment plan is conducive to further speeding up the overseas investment of the company.