OPINION FROM THE INDEPENDENT FINANCIAL ADVISER. As the duration of the Tenancy Agreement exceeds three years, pursuant to Rule 14A.52 of the Listing Rules, the Company has engaged Xxxxx as the independent financial adviser to explain why a longer period for the Tenancy Agreement is required and to confirm whether it is normal business practice for the tenancy agreement of this type to be of such duration. In rendering its opinion, Xxxxx has relied on the statements, information and representations contained or referred to in this announcement and/or provided by the Company, the Directors and the Management, and taken into consideration of the following principal factors:
OPINION FROM THE INDEPENDENT FINANCIAL ADVISER. As the term of the individual agreements under the Master Finance Lease (2022) Agreement may exceed three years, pursuant to Rule 14A.52 of the Listing Rules, the Company has appointed Pelican Financial Limited as the Independent Financial Adviser to issue an independent opinion which is stated below. The Independent Financial Adviser has taken into account the following factors when formulating its independent opinion pursuant to Rule 14A.52 of the Listing Rules:
OPINION FROM THE INDEPENDENT FINANCIAL ADVISER. As the duration of the New Tenancy Agreement and the Existing Tenancy Agreement (as amended by the Amendment Agreement) exceed three years, pursuant to Rule 14A.52 of the Listing Rules, the Company has engaged Halcyon Capital as the independent financial adviser to explain why a longer period for the New Tenancy Agreement and the Existing Tenancy Agreement (as amended by the Amendment Agreement) is required and to confirm whether it is normal business practice for the New Tenancy Agreement and the Existing Tenancy Agreement (as amended by the Amendment Agreement) to be of such duration. In formulating its opinion, Halcyon Capital has taken into consideration the following principal factors:
OPINION FROM THE INDEPENDENT FINANCIAL ADVISER. Since the duration of the Lease Agreement (as supplemented by the Supplemental Agreements) is longer than three years, the Company has appointed Gram Capital must as its independent financial adviser to explain why the Lease Agreement (as supplemented by the Supplemental Agreements) requires a longer period and to confirm that it is normal business practice for agreements of this type to be of such duration. In assessing the reasons for the duration of the Lease Agreement (as supplemented by the Supplemental Agreements) to be longer than three years, Gram Capital have considered the following factors:
(i) according to 《 華 强 上 步 片 區 產 業 空 間 供 給 側 改 革 專 項 政 策 》 (Huaqiang Shangbu District Industrial Space Supply-side Reform Specific Policy*), the Shenzhen Futian government shall grant subsidy to any qualified operating units of the properties located in applicable regions, provided that, among other things, such properties are leased for no less than five years. Shenzhen i-Valley, being the operating unit of the Properties (which are within the applicable regions), will become a qualified operating unit if the period for leasing of the Properties is not less than five years.
(ii) there will be substantial capital expenditure incurred by Shenzhen i-Valley in the renovation of the Properties. It is in the interest of the Group to secure a longer term of lease and avoid frequent relocation which may be costly;
(iii) leasing of the Properties could expedite the development of the Group’s value-innovation business through the renovation of old properties, and in turn establish a benchmark for quality project operations, which is expected to bring a positive impact on the Group’s development of cross-regional projects in the future. It is to the benefit of the Group to keep the renovated properties at a stable location for longer-term; and
(iv) the Group expects to re-lease the renovated Properties to the Group’s clients. The term of individual agreement(s) in respect of the leasing of renovated Properties will not exceed the term of the Lease Agreement (as supplemented by the Supplemental Agreements). A longer term of individual agreement(s) would allow the Group to have a more stable source of income and greater flexibilities. In considering whether it is normal business practice for agreements of similar nature with the lease of properties to have a term of such duration, Gram Capital identified transactions entered into by companies listed on the Stock Exchange...
OPINION FROM THE INDEPENDENT FINANCIAL ADVISER. As the term of the Property Leasing Framework Agreement exceeds three years, pursuant to Rule 14A.52 of the Listing Rules, the Company has appointed Pelican Financial as the independent financial adviser to advise the reasons for the Property Leasing Framework Agreement to have a term exceeding three years and to confirm that it is normal business practice for agreements of this type to be of such duration. In rendering the opinion pursuant to Rule 14A.52 of the Listing Rules, Pelican Financial has taken into consideration the following factors:
OPINION FROM THE INDEPENDENT FINANCIAL ADVISER. As the term of the Zhanjiang Water Supply Agreement exceeds three years, pursuant to Rule 14A.52 of the Listing Rules, the Company has appointed the Independent Financial Adviser to explain why the Zhanjiang Water Supply Agreement requires a term longer than three years and to confirm that it is normal business practice for agreements of this type to be of such duration. In assessing the reasons for the duration of the Zhanjiang Water Supply Agreement to be longer than three years, the Independent Financial Adviser considered the following:
OPINION FROM THE INDEPENDENT FINANCIAL ADVISER. As the term of the contractual arrangements exceeds three years, pursuant to Rule 14A.52 of the Listing Rules, the Company has appointed Xxxxxxxx as the Independent Financial Adviser to explain why a term exceeding three years is required and to confirm that it is normal business practice for agreements of this type to be of such duration. In rendering the opinion pursuant to Rule 14A.52 of the Listing Rules, Xxxxxxxx has taken into consideration the following factors:
OPINION FROM THE INDEPENDENT FINANCIAL ADVISER. According to Rule 14A.52 of the Listing Rules, the duration of the Tenancy Agreement must not exceed three years except in special circumstances where the nature of the transaction requires the Tenancy Agreement to be of a duration which is longer than three years. Accordingly, Xxxxxxxx has been appointed to explain why a longer period for the Tenancy Agreement is required and to confirm that it is normal business practice for agreements of such type to be of such duration. In arriving at its opinion, Xxxxxxxx has relied on the information provided by the Company, including, but not limited to, this announcement, the draft Tenancy Agreement and the comparable agreements entered into between the Group and independent third parties. In considering whether it is normal business practice for an agreement of a similar nature to the Tenancy Agreement to have a term of such duration, Somerley has reviewed three lease agreements entered into by the Group on one hand and independent third parties on the other in respect of the properties located in the PRC with similar uses and noted that each of them has a lease term of 20 years. In addition, Xxxxxxxx also identified and reviewed 55 comparable transactions involving the leasing of properties in the PRC for operation of retail stores, department stores or hypermarkets (the “Comparable Transactions”). The Comparable Transactions selected by Xxxxxxxx are based on the following criteria: (i) one of the parties to each of such transactions involves a company listed on the Stock Exchange;
