China Overseas Land & Investment Limited (COLI) has signed two new three-year framework agreements with fellow China State Construction Engineering Corporation (CSCEC) subsidiary China Overseas Property Holdings Limited (COPL), extending existing arrangements that expire on 30 June 2026.
Agreement Overview 1. New Services Framework Agreement • Scope: Property management and value-added services for COLI projects in mainland China, Hong Kong, Macau and other markets. • Term: 1 July 2026 – 30 June 2029. • Services Caps: – 2H26: RMB800.00 million – FY27: RMB1.50 billion – FY28: RMB1.65 billion – 1H29: RMB950.00 million • Pricing: Contracts to be awarded via competitive tender; terms must be no more favourable than those offered to independent third-party providers. • Conditions: Subject to COPL independent shareholder approval and compliance with Hong Kong Listing Rules.
2. New Property Management Utilities Charges Agreement • Scope: COPL will continue to consolidate and remit utilities charges for individual units and newly included public areas in commercial segments managed on COLI’s behalf. • Term: 1 July 2026 – 30 June 2029. • Utilities Charges Caps: – 2H26: RMB240.00 million – FY27: RMB390.00 million – FY28: RMB390.00 million – 1H29: RMB200.00 million • Pricing: Pass-through of actual costs paid to external utilities providers without mark-up.
Regulatory Position Because the applicable percentage ratios for each set of caps exceed 0.1 % but are below 5 %, the transactions constitute continuing connected transactions under Chapter 14A of the Listing Rules. They require announcement, reporting and annual review but are exempt from independent shareholder approval at COLI.
Rationale Management cites COPL’s scale, expertise and competitive pricing in property services, as well as streamlined collection of tenant utilities payments, as key benefits. The renewed framework ensures service continuity while maintaining tender-based cost discipline.
Governance and Controls COLI will apply standard tender procedures, quarterly cap monitoring by the finance team, annual review by the Audit and Risk Management Committee and the Board, and external auditor verification. Independent non-executive directors will review the transactions annually to confirm adherence to normal commercial terms.
Directors’ Participation Chairman Yan Jianguo and Vice-Chairman Zhuang Yong voluntarily abstained from voting; CEO Zhang Zhichao was absent. No other director abstentions were noted.
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