SINOFERT inks three-year RMB43 million 2026 lease cap with Junmao Real Estate for 6,368 sq m at Beijing’s Youan International Tower

Sinofert Holdings Limited (SINOFERT, 00297) announced that its indirect wholly owned subsidiary, Sinochem Fertilizer, signed a three-year Lease Framework Agreement with Beijing Junmao Real Estate on 30 June 2026.

Key terms • Properties: two full office floors, four warehouse floors and the B1 canteen in Youan International Tower, Fengtai District, Beijing, totalling up to 6,368.39 sq m. • Lease period: 1 July 2026 – 30 June 2029. • Rent ceilings (inclusive of tax): – Office space: ≤ RMB7.20/sq m/day; monthly cap RMB1.22 million. – Warehouse space: ≤ RMB5.50/sq m/day; monthly cap RMB0.09 million. – Canteen: ≤ RMB4.40/sq m/day; monthly cap RMB0.04 million. • Security deposit: RMB4.03 million, payable within five business days of signing. • Payments: quarterly in advance; individual tenancy agreements will set final area and unit rent within the above limits.

Annual transaction caps under HKFRS 16 (rental expenses plus right-of-use assets) have been set as follows: – FY2026: RMB42.95 million – FY2027: RMB35.79 million – FY2028: RMB21.47 million – 1H 2029: RMB7.16 million

Historical lease spending on Youan International Tower totalled RMB8.87 million in 2023, RMB12.23 million in 2024 and RMB11.79 million in 2025. The new arrangement expands the maximum leasable area by roughly 82 % versus previous agreements and lifts the aggregate monthly rent cap by about 57.8 % to RMB1.34 million.

Regulatory position Sinochem Holdings, which holds approximately 52.65 % of SINOFERT, is the ultimate controlling shareholder; Junmao Real Estate is its indirect subsidiary. The lease therefore constitutes a continuing connected transaction under HKEX Listing Rule 14A. As the highest applicable percentage ratio is above 0.1 % but below 5 %, the deal requires announcement and reporting only; no independent shareholders’ approval is needed.

Rationale Management views continued tenancy in the same premises as essential for operational stability and for avoiding relocation and refurbishment costs. The board, including all independent non-executive directors, considers the terms fair, reasonable and in the interests of the company and shareholders.

Control measures SINOFERT will benchmark rents against comparable local properties, monitor utilisation and payments, and conduct annual internal and external audits to ensure compliance with the Lease Framework Agreement and Listing Rules.