Beijing Urban Construction Design renews property lease with BUCG

Beijing Urban Construction Design & Development Group Co. (the "Company") has announced further information regarding the renewal of its Property and Land Leasing Framework Agreement with BUCG for the three financial years ending 31 December 2028. Under the renewed agreement, rent payables will be recognized as right-of-use assets, with proposed annual caps set at RMB54 million for 2026, RMB35 million for 2027, and RMB17 million for 2028.

The company's decision to renew the lease was based on historical transaction figures, prevailing high office property rental rates in Beijing (RMB305 to RMB350 per sq.m. per month for Grade A offices), and BUCG's commitment to no annual rent increases. The company conducted extensive investigations into alternative office buildings, including rental levels, location, and amenities, concluding that renewing the lease with BUCG is in the best interest of the company and its shareholders.

These continuing connected transactions, with percentage ratios exceeding 0.1% but less than 5%, are subject to reporting, announcement, and annual review requirements but are exempt from independent shareholders' approval under Hong Kong Listing Rules. The announcement was made on November 18, 2025, by order of the board, with Pei Hongwei as chairman.