[Caihua News] Financial International (01355.HK) announced that on November 8, 2021, (I) Shenzhen surplus is an inter-company wholly-owned subsidiary (as a tenant), and (ii) Shenzhen Nanshan is an inter-company wholly-owned subsidiary (as the guarantor of Shenzhen profit). Enter into a supplementary lease agreement with (iii) Shenzhen Chuanghua (as the landlord) to renew the 2019 lease agreement so that Shenzhen surplus will continue to lease the properties to Shenzhen Chuanghua after the expiry of the 2019 lease agreement until 31 December 2023.
These properties are the 1st floor and 3rd to 6th floors of Yilida Elite complex on Nanshan Road, Nanshan District, Shenzhen City, China. The leased area, according to the 2019 lease agreement, is about 7079 square meters.
According to the supplementary tenancy agreement, the total rent payable for the whole term of the lease is about RMB 12.9 million (excluding property management fees).
Nanshan Hotel Co., Ltd., which is a wholly-owned subsidiary, is mainly engaged in investment holding business.
Shenzhen Chuanghua is a limited company established in China. Shenzhen Chuanghua's business scope includes the production, processing and operation of certain electrical / telecommunications equipment and machinery, the operation of car parks and the rental of self-owned properties.
The Group has been operating accommodation projects in these properties in Nanshan District, Shenzhen, China for more than 10 years, and the accommodation project now provides 189 rooms. The Group intends to continue to lease these properties for its accommodation project in Nanshan District through a supplementary lease agreement with Shenzhen Chuanghua.
The terms of the Supplementary tenancy Agreement are determined by Shenzhen Yingli, Shenzhen Nanshan and Shenzhen Chuanghua after fair negotiation, and the rental and property management fees of the Supplementary tenancy Agreement are the same as those of the 2019 Lease Agreement. The rent and other payments payable by Shenzhen Ying under the Supplementary tenancy Agreement are expected to be disbursed from the internal resources of the Group.