KWG Group extends key Guangzhou property lease, adjusts annual caps

KWG Group Holdings Limited announced the extension of its property lease agreement for the IFP Property in Guangzhou, China. On September 30, 2025, Guangzhou Junzhao Real Estate Management Co., Ltd., a wholly-owned subsidiary of KWG, entered into the 2025 Extension Agreement with Guangzhou Kai Chuang Business Investments Group Company Limited as the lessee. This extends the lease of unit 301, Level 3, International Finance Place, with a gross floor area of approximately 1,924.51 sq.m., from October 1, 2025, to January 31, 2026. The effective monthly rental fee is RMB267,506.89.

This transaction constitutes a continuing connected transaction for KWG Group, as Mr. KONG, an executive director and chief executive officer, indirectly owns 100% equity interests in the lessee. The aggregated annual caps for the Property Lease Agreements have been revised, with the 2025 cap increasing to RMB15,792,078, the 2026 cap to RMB10,461,882, and the 2027 cap set at RMB216,123.

The rental fees were determined based on existing lease agreements and prevailing market rates for comparable properties. The company expects to earn rental fee income at market rates, with the lessee bearing all operational costs and risks. The directors consider the agreement to be on normal commercial terms and in the interest of the company and its shareholders.