Summary by Futu AI
Cong Hai Investment Limited announces a new Property Management Services Framework Agreement with its direct non-wholly-owned subsidiary, Cong Hai Property Management. The new agreement will enter into force on 30 January 2024 and replace the existing framework agreement and will be valid until 31 December 2026. This is a response to the existing ceiling of 88% for service fee contracts from 1 January to 9 May 2024 under the original agreement, which is close to the 80% threshold of the internal control standard. The new agreement sets new annual caps for 2024 to 2026 at RMB4.5 billion, US$5.2 billion and US$5.7 billion, respectively. Cantonese Properties is managed as a contact of Cantonghai Holdings and Cantonese Hai Holdings is the ultimate controlling shareholder of Cantonhai Investments, so the transaction under the new agreement constitutes a continuing connected transaction. The terms of the new agreement and the new cap are considered to be fair and reasonable and in the overall interests of the company and its shareholders.
