China Gaoxian unit leases out Chinese properties for $971,000

SINGAPORE - Mainboard-listed yarn supplier China Gaoxian Fibre Fabric Holdings announced on Tuesday night (Nov 27) that its wholly owned subsidiary Zhejiang Huagang Polyester Industrial Co will lease out hostel units and part of its production plant in Zhejiang Province for a total annual rent income of 4.9 million yuan (S$971,000).

Zhejiang Huagang entered into lease and supplemental agreements with six lessees to lease out 111 hostel units and 25,140 square metres of its Huagang production plant for periods ranging from two years and eight months to nearly five years. According to the terms and conditions of the agreements, the leasees will settle the annual rental fees one year in advance.

Noting that it has considered various options to revive the company, the board said the annual income generated by leasing out the unused space in the production plant will go towards the group's operating expenses.