Guangdong Investment Executes Lessee Framework Agreement with Guangdong Yuehai Water, Sets Annual Lease Caps at up to RMB 110.00 Million

On 2 November 2026, Guangdong Investment Limited (“Guangdong Investment”) signed a Lessee Framework Agreement with Guangdong Yuehai Water Co., Ltd., a wholly owned subsidiary of its ultimate parent Guangdong Holdings. The pact governs the leasing of properties—including shopping centres and offices—and construction equipment from Guangdong Holdings Group to Guangdong Investment and its subsidiaries for the period 2 November 2026 to 31 December 2028.

The agreement introduces combined annual caps of RMB 32.00 million for the remainder of 2026 (properties: RMB 20.00 million; equipment: RMB 12.00 million) and RMB 110.00 million for each of 2027 and 2028 (properties: RMB 80.00 million; equipment: RMB 30.00 million). These ceilings are based on historical usage, anticipated expansion—particularly additional office leases in the newly opened Yueshui Center in Shenzhen—and expected rental inflation.

Historically, Guangdong Investment booked property lease expenses and right-of-use assets of RMB 4.18 million in 2024, RMB 6.18 million in 2025, and RMB 10.58 million for the nine months to 30 September 2026. Corresponding figures for equipment leases were RMB 1.58 million, RMB 9.72 million, and RMB 1.25 million, respectively.

Rental charges under forthcoming specific agreements will be set after arm’s-length negotiations, benchmarked against prevailing market rates and independent valuations. Payments may be made annually, semi-annually, quarterly or monthly.

The framework supports Guangdong Investment’s ongoing operations at assets such as the Yuehai Tiandi Shopping Centre in Guangzhou and strengthens synergies with Guangdong Holdings through continued access to strategic properties and equipment.

Because Guangdong Holdings controls approximately 58.26 % of Guangdong Investment, Guangdong Yuehai Water is classified as a connected person under Hong Kong Listing Rules. The aggregate percentage ratios for the new caps exceed 0.1 % but remain below 5 %, rendering the transactions subject to reporting, annual review and announcement requirements yet exempt from independent shareholders’ approval pursuant to Rule 14A.76(2).

Guangdong Investment has instituted layered internal controls, including pre-execution reviews of each specific lease, semi-annual utilisation monitoring with an 80 % alert threshold, and annual assessments by independent directors and external auditors to ensure compliance with the framework and market-based pricing.