Shenzhen Project

Shenzhen WIC Project Accelerates With Development Approval

Appraised Value Upon Completion at JPY 301 billion

The World Innovation Center (WIC) project, which our subsidiary, Shenzhen Crown (China) Electronics Co., Ltd. (hereinafter "Crown Electronics") is working on in Shenzhen, China, has received development approval from the authorities and will accelerate towards the start of construction in spring 2026. The project aims to attract major high-tech companies from Japan, Europe, and the United States, and to generate innovation through collaboration with companies from across China and startups in the Shenzhen area.

Located in Shenzhen, where many high-tech companies gather

Since being designated a Special Economic Zone by the Chinese government, Shenzhen has continued to develop, attracting a growing number of cutting-edge technology companies. Global companies such as Huawei, the telecommunications equipment manufacturer, BYD, the electric vehicle manufacturer, DJI, the drone company and Tencent, the IT company are headquartered here, and this city is also known as one of the world's leading startup clusters.

The Chinese government is promoting the development of the Guangdong-Hong Kong-Macau Greater Bay Area, which includes cities in Guangdong Province as well as Hong Kong and Macau, as a national project. Shenzhen is one of the central cities and is expected to continue to grow.

WIC is located at a 21,991 square meters site in the Futian District of central Shenzhen, on the former Crown Electronics factory site, which was approved for development earlier than other areas. It is located approximately 300 meters from Che-gong-miao Station, a subway station served by four lines. From Che-gong-miao Station, Shenzhen International Airport is approximately 30 minutes away, making it convenient for public transportation.

Over 200 companies from around the world will be move into the "building which will last for 100 years"

The WIC project will involve the construction of two office buildings 250 meters above ground and one residential building 150 meters above ground. The total construction area will be approximately 454,000 square meters (including the basement). The design will be handled by Nikken Sekkei Ltd., a major firm with experience in the design and supervision of various buildings and urban design. We will bring together the best of technology, aiming for a long-lasting, safe and secure "100-year building" for this construction. The office buildings will house over 200 major high-tech companies from over 30 countries, including Japan, the United States, and Europe.

Overview of the WIC Project

Access:                           Approximately 300m from Che-gong-miao Station, which is served by four subway lines.

Building Use:              Offices, residences, commercial facilities, public facilities, etc.

Site Area:                       21,991 square meters

Total Building Area:  Approximately 454,000 square meters (including basement)

Design:                           Nikken Sekkei Ltd., CAPOL International & Associates Group

Creating business with extensive experience in China

In 1977, shortly after the normalization of diplomatic relations between Japan and China, our company began manufacturing tape recorders in Shanghai at the request of the Chinese government. This was the first time a Japanese company had entered China since the normalization of diplomatic relations.

Later, as our business expanded, we established Crown Electronics in Shenzhen and obtained the right of using land for our factory. This land is now planned for development for WIC. In the 2000s, when China joined the World Trade Organization (WTO), we worked with various local governments to attract approximately 1,300 Japanese companies.

We will support business matching between 200 and more WIC tenant companies from 30 countries and the companies across China. We have already met with and agreed to cooperate with most of the authorities from 13 provinces and 4 municipalities in China, which are at the heart of the Chinese economy. We will actively develop our business as an innovation platform, acting as an intermediary between the Shenzhen area startups and the Japanese, American, and European companies, promoting joint development.

We also provide full-time support to WIC tenant companies, including lifestyle assistance and recruitment services. Based on our experience in China, we will provide a service that will satisfies the needs of overseas companies.

Valuation of JPY 301 billion, High profitability expected

WIC's tenants will receive business support and high-quality assistance, generating total annual rent of approximately JPY 28.8 billion. Innovation revenue from business matching and other activities is expected to reach JPY 7.5 billion annually at the start of operations. We will continue to focus on innovation, aiming to grow this revenue to a level equivalent to rent in the future.

According to a first-class real estate appraisal company recommended by Guangdong Province, the assessed value of WIC's real estate upon completion will be approximately JPY 301 billion (CNY 14.649 billion). Meanwhile, construction and land costs are expected to be approximately JPY 92.5 billion (CNY 4.5 billion), making this a highly profitable project. Land costs have been kept low because we are acquiring new right of using land for a former factory site that we currently own.

(Yen figures in this text are converted at the Tokyo foreign exchange market rate of JPY 20.55/RMB as of August 7.)

We will continue to hold detailed discussions with Shenzhen government and other relevant authorities in preparation for development. We will announce further details of the plan and schedule as they become finalized.

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