China Railway Construction Corporation Limited (“CRCC” or “the Company”) announced that it has entered into a New Property Leasing Framework Agreement with its controlling shareholder, China Railway Construction Corporation (“CRCCG”), on October 30, 2025. The New Property Leasing Framework Agreement governs the leasing of certain CRCCG-owned properties to the Company from January 1, 2026, to December 31, 2026.
CRCC estimates that the total expenditure under the New Property Leasing Framework Agreement and the Land Use Rights Leasing Framework Agreement for the year ending December 31, 2026, will be capped at RMB200 million. According to the announcement, CRCCG currently holds a 51.23% equity interest in CRCC, rendering these agreements continuing connected transactions under the Hong Kong Listing Rules.
The announcement notes that the Original Property Leasing Framework Agreement signed on December 27, 2024, will expire on December 31, 2025. The Company’s new arrangement with CRCCG sets out pricing based on reference to prevailing market rates, the location and condition of the leased properties, and independent valuations when applicable. Additionally, CRCC states that the arrangement is designed to meet its business development needs and includes provisions for possible lease extensions or renewals in compliance with relevant regulations.
Historical transaction amounts for leasing properties and land use rights under existing agreements were around RMB134 million and RMB136 million for 2023 and 2024, respectively. For the nine months ended September 30, 2025, approximately RMB35.28 million was incurred. CRCC expects the newly set annual cap of RMB200 million for 2026 to accommodate potential increases in leasing requirements.
Under the Hong Kong Listing Rules, as the highest applicable percentage ratio for these transactions exceeds 0.1% but remains below 5%, the New Property Leasing Framework Agreement and the Land Use Rights Leasing Framework Agreement are subject to reporting, announcement, and annual review requirements. The arrangement is exempt from the circular and independent shareholders’ approval requirements. The Company’s board of directors, including independent non-executive directors, considers the agreements to be fair and reasonable, on normal commercial terms, and in the best interests of both the Company and its shareholders.
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