Land Lease Agreement and Properties Lease Agreement. The Properties and the Land are premises which, for the time being, the Company does not need to utilise. The entering into of the Land Lease Agreement and the Properties Lease Agreement will increase the efficient utilisation rate of the assets of the Company, which will help increase the returns to the Shareholders, and which is in the interests of the Company and its Shareholders as a whole.
Land Lease Agreement and Properties Lease Agreement. As at the date of this announcement, YTO beneficially owns approximately 48.81% equity interest in the Company and is the immediate controlling shareholder of the Company. Accordingly, YTO is a connected person of the Company and the transactions contemplated under the Land Lease Agreement and the Properties Lease Agreement constitute continuing connected transactions of the Company under the Listing Rules. The transactions contemplated under the Land Lease Agreement and the Properties Lease Agreement are required to be aggregated pursuant to Rule 14A.81 of the Listing Rules. As all of the applicable percentage ratios (after aggregation) are less than 0.1%, the transactions contemplated under the Land Lease Agreement and the Properties Lease Agreement fall to be de minimis transactions and are exempt from the reporting, announcement and independent shareholders’ approval requirements under the Listing Rules. The disclosure made in this announcement is made on a voluntary basis in accordance with the announcement published by the Company on the even day on the Shanghai Stock Exchange.
