Cathay Group Holdings renews Beijing headquarters lease with significant rent cut

Cathay Group Holdings Inc. has entered into new lease agreements for its headquarters in Beijing, effective from January 1, 2026, to December 31, 2028. The company’s subsidiaries and consolidated entities will continue to lease the premises from Pu Shulin, the executive director and controlling shareholder.

The aggregate rental amount for these 2026 Lease Agreements will be approximately RMB7.5 million, representing a significant reduction of approximately 47% compared to the 2023 Lease Agreements. The rent is payable as a one-time payment upon signing.

This renewal involves six separate lease agreements covering various office units within Wanda Plaza. The group expects to recognize right-of-use assets valued at approximately RMB7.5 million under these agreements. Colliers Appraisal & Advisory Services Co., Ltd., an independent valuer, has confirmed the terms and rent are fair and consistent with prevailing market rentals.

Given Pu Shulin's role, these transactions are classified as connected transactions under Chapter 14A of the Listing Rules. The applicable percentage ratios are between 0.1% and 5%, subjecting the transactions to reporting and announcement requirements but exempting them from independent shareholders’ approval. The directors, excluding Pu Shulin and Luo, view the terms as fair and in the best interest of the company and its shareholders.