BUCD renews key related party deals with controlling shareholder BUCG

Beijing Urban Construction Design & Development Group Co. Limited (BUCD) announced the renewal of its Integrated Services Framework Agreement and Property and Land Leasing Framework Agreement with Beijing Urban Construction Group Co., Ltd. (BUCG), its controlling shareholder. Both agreements are set for a further three-year term, effective from January 1, 2026, to December 31, 2028. This renewal ensures the continued provision of integrated services by BUCD to BUCG and vice versa, as well as the leasing of properties and land for office and operational use.

The estimated annual caps for the integrated services indicate substantial financial commitments. BUCD expects to generate RMB680m, RMB720m, and RMB760m in revenue from BUCG for the years ending December 31, 2026, 2027, and 2028, respectively. Conversely, expenditures incurred by BUCD for services from BUCG are projected at RMB590m, RMB620m, and RMB660m for the same periods. Additionally, annual expenditure for leasing properties and land from BUCG is capped at RMB23m for each of the three years.

As BUCG holds a 42.34% interest in BUCD, these renewals constitute continuing connected transactions under Hong Kong Listing Rules. An Extraordinary General Meeting will be convened to seek shareholder approval for the Integrated Services Framework Agreement and its proposed annual caps.