Midea Real Estate Announces RMB 1.87 Billion Renewal of Five Connected-Transaction Frameworks for 2027-2029

Bulletin Express11-04

Midea Real Estate Holding Limited (Midea Real Estate) has executed five new framework agreements with related parties Midea Holding, Midea Construction and Midea Group Co., Ltd., securing the continuation of key connected-party transactions for the three years from 1 January 2027 to 31 December 2029.

The 2027 agreements cover: 1) Construction Project Management Services (provider: Midea Real Estate; customers: Midea Holding and Midea Construction); 2) Property Management Services (provider: Midea Real Estate; customers: Midea Holding and Midea Construction); 3) Commercial Property Leasing (lessor: Midea Construction; lessee: Midea Real Estate); 4) Real Estate Technology Products & Services (provider: Midea Real Estate; customer: Midea Construction); and 5) Smart Technology Products Purchases (supplier: Midea Group; customer: Midea Real Estate).

Proposed annual spending/receipts caps (inclusive of tax) are as follows: • Construction Project Management: RMB 710.00 million (2027), RMB 806.00 million (2028), RMB 858.00 million (2029). • Property Management: RMB 300.00 million, RMB 310.00 million, RMB 340.00 million. • Commercial Property Leasing: RMB 30.00 million, RMB 30.00 million, RMB 31.00 million. • Real Estate Technology Products & Services: RMB 100.00 million, RMB 110.00 million, RMB 130.00 million. • Smart Technology Products Purchases: RMB 25.00 million, RMB 27.00 million, RMB 30.00 million.

Historical utilisation remains within existing 2026 caps. For example, construction project-management billings up to 30 September 2026 totalled RMB 524.8 million annualised, versus a 2026 cap of RMB 1.34 billion; property-management revenue annualised at RMB 255.9 million, against a RMB 502.00 million cap; and smart-technology product purchases annualised at RMB 19.60 million, well below the RMB 250.00 million limit.

Under Hong Kong Listing Rules, the construction and property-management frameworks each exceed the 5% percentage ratio threshold; their new caps therefore require independent shareholder approval as well as reporting and annual review. The leasing, real-estate technology and smart-product agreements fall between 0.1% and 5%, triggering reporting and annual-review obligations but not shareholder approval. An Independent Board Committee of three independent non-executive directors has been formed, with Rainbow Capital (HK) Limited appointed as independent financial adviser. A circular and EGM notice are scheduled for despatch on or around 25 November 2026.

Management cites long-standing operational synergies with the Midea Holding, Midea Construction and Midea Group platforms, additional revenue streams (except for the purchase agreement), and assured supply and pricing advantages for smart-technology products as key rationales. Internal control measures include benchmark pricing, multi-level approval, quarterly compliance reviews and annual scrutiny by external auditors to ensure that all transactions remain on normal commercial terms and within the stipulated caps.

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