Evergrande Property Services Group Limited (“Evergrande Property Services”) has outlined the scale and terms of continuing connected transactions with its controlling shareholder China Evergrande Group (In Liquidation) after the expiry of the 2023 framework agreements on 31 December 2025. Although new framework agreements could not be executed—owing to liquidators’ reluctance to enter long-term contracts during ongoing liquidation—1,788 outstanding individual contracts will continue to govern dealings between the two sides in 2026.
Key 2026 caps • Property-related services: Estimated maximum aggregate transaction amount capped at RMB 83.80 million, derived from 1,645 active service contracts covering: – Property Management Services: RMB 56.10 million – Pre-delivery Services: RMB 9.00 million – Cleaning Services: RMB 2.60 million – Acceptance Services: RMB 6.10 million – Repair & Maintenance Services: RMB 10.00 million
• Leasing of car-parking spaces: Estimated maximum transaction amount set at RMB 190.70 million under 179 lease agreements. Rent payable to China Evergrande ranges from 47%–70% of sub-lease income, benchmarked to market rates.
Historical performance – Property-related services: Actual billings fell from RMB 109.20 million in 2023 to RMB 30.50 million in 2025—well below the respective caps of RMB 478.50 million, RMB 457.50 million and RMB 487.10 million. – Car-park leasing: Revenue rose to RMB 182.70 million in 2024 before easing to RMB 167.70 million in 2025, against annual caps of RMB 477.80 million, RMB 488.40 million and RMB 493.70 million.
Pricing and payment terms • Service fees are fixed or cost-plus, determined after arm’s-length benchmarking to market rates for comparable third-party projects. • For car-park leases, Evergrande Property Services remits rental only after collecting income from sub-tenants; no advance payments are made. • All unit prices adhere to government-guided ceilings where applicable and are no less favourable than terms offered to or by independent third parties.
Internal oversight Monthly reviews by the finance department, annual scrutiny by independent non-executive directors, and external auditor checks remain in place to ensure caps are observed and commercial terms remain fair.
Independent Financial Adviser view Ample Capital Limited concludes that contract tenors exceeding three years for property management, pre-delivery services and car-park leasing reflect industry practice and safeguard operational continuity, especially given real-estate development cycles and the administrative constraints posed by China Evergrande’s liquidation.
Regulatory status Because estimated 2026 transaction amounts represent less than 5% of applicable percentage ratios, the deals are subject to reporting, annual review and announcement requirements under Chapter 14A of the Hong Kong Listing Rules but are exempt from independent shareholders’ approval. Non-executive directors Mr Sang Quan and Mr Lin Wuchang, both holding positions within China Evergrande, abstained from the Board vote approving the continued performance of the agreements.
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