China Boton Group Resumes Trading, Soars 55.56% to 52-Week High; Signs Land Acquisition Agreement with Shenzhen Government - Reuters/AP

Key points at a glance:

China Boton Group (HK.3318) resumed trading on December 10th. The opening price was 2.800 Hong Kong dollars, rising by 55.56% at one point to a 52-week high. The closing price at 3 pm was 2.090 Hong Kong dollars, up 16.11%, with a trading volume of 11.55 million shares and a turnover of 24.96 million Hong Kong dollars. The company announced that its subsidiary, Shenzhen Boton, signed a land acquisition agreement with the Nanshan District Government of Shenzhen on December 7th. The Nanshan District will reclaim approximately 64,662.42 square meters of land on Leli Road for the construction of the Xili High-speed Rail Hub. Shenzhen Boton will receive a compensation of 2.272 billion yuan and an advance delivery bonus of 222 million yuan. The company expects to record a pre-tax profit of approximately 2.38 billion yuan. The total compensation amount is approximately 2.5 billion yuan (equivalent to approximately 2.74 billion Hong Kong dollars), higher than the company's market value of 2.204 billion Hong Kong dollars on that day. The net proceeds of approximately 1.768 billion yuan will be used to repay bank loans, while approximately 518 million yuan will be used as general operating funds. On December 10, 2025, China Boton Group Limited (stock code: HK.3318) resumed trading on the Hong Kong Stock Exchange. According to data, China Boton Group opened at 2.800 Hong Kong dollars this morning, a significant increase from the previous day's closing price of 1.800 Hong Kong dollars, with an increase of up to 55.56% at one point, reaching a 52-week high.

At the close of trading at 3:00 PM, the stock price was reported at HK$2.090, an increase of 16.11%. The total trading volume for the day was 11.55 million shares, with a total turnover of HK$24.96 million. The company's total market value is HK$2.258 billion.

The company released an announcement last night (December 9th), disclosing information regarding land acquisition and resumption of transactions.

According to the announcement, China Boton Group's indirectly wholly-owned subsidiary, Shenzhen Boton, entered into a "Land Acquisition Agreement" with the government department of Nanshan District, Shenzhen on December 7, 2025. The government will acquire a piece of land located on Leli Road in Nanshan District, Shenzhen (with a total area of approximately 64,662.42 square meters) for the construction of the Xili High-speed Rail Hub and related projects.

According to the data disclosed in the announcement:

Compensation amount: Local authorities will pay Shenzhen Borton a cash compensation of RMB 2,271,913,552 (approximately HKD 2.495 billion). Additional bonus: If the land can be vacated and delivered ahead of schedule, an early completion bonus of RMB 222,472,334 (approximately HKD 2.44 billion) will also be awarded. Expected revenue: The company expects to record pre-tax revenue of approximately RMB 2.38 billion from this transaction. Data comparison: According to the agreement, the total cash compensation expected to be received by the company (approximately RMB 2.5 billion, equivalent to approximately HKD 2.74 billion) exceeds the company's total market value as of 3 pm today (HKD 2.204 billion). The announcement states that the net amount of RMB 1.768 billion will be used as follows: approximately RMB 1.25 billion for repayment of bank loans; approximately RMB 518 million for general operating funds.

Image source: China Boton Group