In response to the impact of the new coronavirus pneumonia epidemic, Nike’s main OEM shoe factory Fengtai passed the board of directors decision on the 6th to reduce the original leased land area of more than 48.55 hectares in Nan Ha Small Industrial Zone, Deling County, Binh Thuan Province, Vietnam. to more than 15.44 hectares, which is less than one-third of the original leased land, and the original land rent and underlying foundation fee totaled approximately US$17.4 million, which was also reduced to US$5.53 million.
Fengtai said that regarding the land for building a factory, the group will decide on the timetable for building a shoe factory based on the progress of the epidemic this year.
The land in Nan Ha Small Industrial Zone, Deling County, Binh Thuan Province, Vietnam, was originally leased by Vietnam Dona Standard Footwear Company (DS), a subsidiary of Fengtai. Due to consideration of the group’s overall operation plan, the board of directors decided to transfer the land on the 6th. It is leased to Vietnam Nam Ha Footwear Company (NH), a newly established subsidiary of Fengtai.
Fengtai stated that the rent paid by DS Company will be paid in equal amounts by NH Company to DS Company. After the transfer, NH Company will re-sign a land lease contract with the landowner and pay according to the contract conditions.
As for the resumption of work of its Indian factory, Fengtai’s financial department director Chen Liqin revealed that after Fengtai’s Indian factory applied for government approval, it will resume production with 50% of the attendance manpower starting from the 6th. Fengtai’s Indian factory accounts for 26% of its finished shoe output, second only to the group’s Vietnam factory which accounts for 52%, making it the group’s second largest shoe production base. After the Indian factory resumes production on the 6th, it will be conducive to the group’s order production scheduling. .
On May 14, 2019, the board of directors of Fengtai originally decided that Vietnam Dona Standard Footwear Company, a subsidiary of Vietnam Dona Standard Footwear Company, will lease land in Nan Ha Small Industrial Zone, Deling County, Binh Thuan Province, Vietnam, covering an area of more than 48.55 hectares. The land rent and the lower floor The total basic fee is VND 405 billion (equivalent to approximately US$17.4 million).
In response to the impact of the new coronavirus epidemic On the 6th, the board of directors of Fengtai decided to reduce the leased area to more than 15.44 hectares, with a total land lease amount of 129.2 billion VND (equivalent to approximately 5.53 million U.S. dollars), which is equivalent to a reduction of approximately 11.9 million U.S. dollars in land lease amount.
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