Shengyao Industry Subsidiary Jingyun Technology Sells Industrial Land in Tainan's Xinying Industrial Park for 9.2 Billion Yen

Shengyao Industry (2438-TW), a listed optoelectronics company, had its subsidiary Jingyun Technology sell a 4892-ping industrial factory site in Tainan's Xinying Industrial Park through Heishi Bi International Property. The sale price was 9.2 billion yen, with Rongzhong Technology as the winning bidder. The land consists of two factory areas at Xinzhong Road 5 and Siwei Road 22, with a total building area of approximately 3815 ping. The sale price exceeded the base price of 8.2 billion yen by 12.2%, with a per-ping price of approximately 165,000 yen. Jingyun Technology's main revenue sources in the past included panel-related recycling, acid washing, and related labor income. However, due to changes in industrial structure, production adjustments by major manufacturers, and changes in market demand, its business scale has significantly decreased. The outlook for short-term business recovery is uncertain. For asset utilization, group capital allocation, and overall business transformation, Jingyun Technology carefully evaluated and sold the land through a public auction. The industrial real estate market in Tainan has seen rising land prices due to factors such as industrial investment in the south, expansion of the semiconductor supply chain, return of Taiwanese businesses, and decentralization of production bases. According to the Ministry of the Interior's published urban land price index, Tainan's industrial zone land price index increased by approximately 4.1% year-on-year in the first half of 2024, the highest growth rate among all counties and cities in Taiwan, indicating that industrial investment has gradually spread from the Southern Science Park to surrounding industrial clusters and transportation hubs. Tainan's Xinying Industrial Park is a mature manufacturing cluster in southern Taiwan, covering approximately 124 hectares and primarily including industries such as metal products, basic metals, machinery equipment, plastics, and chemical products. The park is adjacent to the Xinying Interchange of National Highway 1, offering convenient north-south transportation and connecting the industrial axis of Tainan and Chiayi, providing locational advantages for enterprises that value supply chain efficiency and regional layout. Heishi Bi International Property's General Manager Jan Kuei-Chi said that this transaction is not simply selling the land based on its unit price but rather converting the advantages of existing factory buildings, dual factory configuration, transportation conditions, and mature industrial clusters into operational value that buyers can measure. For enterprises, shortening the time for site selection, planning, and construction by one to two years often creates benefits far greater than the difference in land unit prices. Jan Kuei-Chi further pointed out that in recent years, enterprises evaluating industrial real estate have shifted from simply comparing land prices to comprehensively considering factors such as 'moving-in time, operational efficiency, construction costs, supply chain location, and asset scarcity.' In particular, with rising construction costs and lengthening factory construction review times, industrial assets with legal existing factories, complete ownership, and a certain base scale have become more competitive in the market. Xinying is located between the industrial axis of Tainan and Chiayi, with a mature industrial cluster. The Tainan City Government is continuously promoting development plans such as the Xinying Interchange Special Zone and the North Core 2-1 Industrial Park. The successful sale of this large industrial factory site not only reflects the real demand for immediately usable industrial assets but also shows that the demand for industrial real estate in Tainan is gradually extending from the Southern Science Park and the surrounding urban areas to the Xibei region with transportation advantages and industrial foundations.