Shenzhou International renews key lease with connected party, ensuring operational continuity

Shenzhou International Group Holdings Limited announced a connected transaction involving a new lease agreement between its wholly-owned subsidiary, Shenzhou Knitting, and Shenzhou Properties. The agreement, dated December 8, 2025, covers a three-year term from January 1, 2026, to December 31, 2028, for properties essential to the group's apparel production and staff accommodation. Shenzhou Properties is considered a connected person due to its ownership structure, which includes Mr. Jianrong Ma, the chairman and an executive director, and SZ Nova Renascens, an associate of Mr. Jianrong Ma.

The monthly rent for the properties totals RMB3,233,169 across 148,407.04 square meters, determined through arm's length negotiation and validated by an independent valuer as fair and reasonable, inclusive of value-added tax. The estimated value of the right-of-use assets to be recognized by the group under the lease agreement is approximately RMB106,966,539 (unaudited).

This transaction is categorized as a connected transaction under Chapter 14 of the Listing Rules. As applicable percentage ratios for the right-of-use assets exceed 0.1% but are less than 5%, the transaction is exempt from circular and independent shareholders' approval requirements under Rule 14A.76(2) of the Listing Rules, but remains subject to reporting and announcement requirements. The board, including independent non-executive directors, views the terms as fair, reasonable, and in the best interests of the company and shareholders.