REASONS FOR AND BENEFITS OF THE TENANCY AGREEMENT. The current principal place of business of the Company is at the same building of the Premises. In order to cope with the continuous development of the Group, the Premises have been rented for use as the Company’s additional office space. The terms of the Tenancy Agreement were arrived at after arm’s length negotiation between the parties to the Tenancy Agreement. The Directors (including the independent non- executive Directors) are of the view that the Tenancy Agreement has been entered into on normal commercial terms and in the ordinary and usual course of business of the Group, and the Tenancy Agreement and its annual caps are fair and reasonable and in the interests of the Group and the Shareholders as a whole. None of the Directors have a material interest in the Tenancy Agreement. However, in view of good corporate governance practices, Xx. Xxxx Xxxxxxxxxx, Xx. Xxx Xxxxx and Xx. Xxxx Xxxxxx, each of them being both a Director of the Company and a director of CE Hong Kong, had abstained from voting on the relevant Board resolution approving the Tenancy Agreement and its annual caps.
REASONS FOR AND BENEFITS OF THE TENANCY AGREEMENT. The Directors are of the view that (i) the current office premises of Litmus is unable to cope with the increase in demand in use of its office premises due to the continuous business development of Litmus; (ii) the Property is geographically located in an area where there is concentration of companies in the rail transit industry and is able to meet the development needs of Litmus; and (iii) the Tenancy Agreement represents an opportunity for the Group to expand its operations in Beijing at a prime business location without substantial costs incurred. The Directors (including the independent non-executive Directors) are of the opinion that the transaction contemplated under the Tenancy Agreement is entered into in the ordinary and usual course of business of the Group, and the Tenancy Agreement (together with the rent, property service fees and other fees payable) has been entered into on normal commercial terms after arm’s length negotiations between the parties, and the terms of the transaction contemplated under the Tenancy Agreement (together with the rent, property service fees and other fees payable) are fair and reasonable and in the interests of the Company and the Shareholders as a whole.
REASONS FOR AND BENEFITS OF THE TENANCY AGREEMENT. To cope with the Group’s business expansion and therefore the needs for extra storage space, in particular, for the facilitation and preparation of the future opening and operation of the Group’s Kai Tak Project, the Group considers to lease additional storage space at a location that is logistically convenient. Given the advantageous location of the Premises, which is in the same building as the leased premises under the Previous Tenancy Agreement and that the layout and fixtures of the Premises are of a nature and type suitable for the intended storage use of the Group, the lease of the Premises is considered to be appropriate and beneficial to the Group as it should provide operational efficiency when used together with the premises under the Previous Tenancy Agreement. The terms of the Tenancy Agreement, including but not limited to the rental rate, were arrived at after arm’s length negotiation between the parties, having considered, among others, the location advantage of the Premises and the prevailing market rates of nearby properties comparable to the Premises. The Board, including the independent non-executive Directors, is of the view that (i) the terms of the Tenancy Agreement are fair and reasonable; (ii) the transaction under the Tenancy Agreement is conducted on normal commercial terms and in the ordinary and usual course of business of the Group; and (iii) the entering into of the Tenancy Agreement and the transaction thereunder are in the interests of the Group and the Shareholders as a whole.
REASONS FOR AND BENEFITS OF THE TENANCY AGREEMENT. The Company considers that the location of the Premises is suitable for the opening of a new AEON store, which at the same time expands the Group’s store network and coverage as a whole. The Company is also of the view that with AEON Mall being a head tenant of the Shopping Centre, both the Premises and other parts of the Shopping Centre will be operated in accordance with similar AEON standards. This should generate an integrated shopping environment and as a result, provide excellent AEON services to the Group’s customers and improve customer satisfaction. The terms of the Tenancy Agreement are arrived at after arm’s length negotiations between AEON Mall and AEON GD, and based on the information available to the Company, the Company understands that the principal terms of the Tenancy Agreement are no less favourable than the principal terms of the tenancy agreement between AEON Mall and the Building Developer with respect to the Premises. Based on (i) the abovementioned views of Somerley on the reasonableness of the duration of the Tenancy Agreement and (ii) the commercial reasons set out above, the Directors (including the independent non-executive Directors) are of the opinion that:
REASONS FOR AND BENEFITS OF THE TENANCY AGREEMENT. The Group is principally engaged in (i) the manufacturing, processing and retailing of traditional Chinese medicine which includes Chinese medicinal products sold under the brand name of “Xxx Xxxx Tong” and a range of products manufactured by selected medicinal materials with traditional prescription, mainly in the PRC and Hong Kong; (ii) the processing and retailing of western pharmaceutical and personal care products under the brand names of “Madame Pearl’s” and “Pearl’s”; (iii) property investment; and (iv) management and sale of properties in agricultural produce exchange markets through its subsidiary, China Agri-Products Exchange Limited. The entering into of the Tenancy Agreement will enable the Group to lease a retail space in a prime residential location in Hong Kong to attract local demand for its household medical care and health products from residents nearby. The terms of the Tenancy Agreement were reached on an arm’s length basis with reference to similar properties of size, terms (including rental rate), location and the prevailing market conditions in the vicinity. Having considered the foregoing, the Directors (including the independent non-executive Directors) consider that the entering into of the Tenancy Agreement to be in the ordinary course of business of the Group and on normal commercial terms which are fair and reasonable, and that the Tenancy Agreement and the transactions contemplated thereunder are in the interests of the Company and its Shareholders as a whole.
REASONS FOR AND BENEFITS OF THE TENANCY AGREEMENT. The Group is principally engaged in catering businesses and securities trading. The Premises will be used as the principal office of the Group. The aggregate rentals payable under the Tenancy Agreement were arrived after arm’s length negotiation between the parties to the Tenancy Agreement and determined with reference to, amongst other things, the current market rent payable for property similar to the subject property and of comparable utility. The Directors (including the independent non-executive Directors) are of the view that the abovementioned rentals are fair, reasonable and in line with the market level, and the entry into the Tenancy Agreement is in the interests of the Group and its Shareholders as a whole.
REASONS FOR AND BENEFITS OF THE TENANCY AGREEMENT. In negotiating the rent under the Tenancy Agreement, the Board made reference to the current leasing market conditions, the market rent of comparable premises in the vicinity of Unimix Industrial Centre and the tenancy agreements that had been entered into by UPL with other independent third parties in respect of certain units of Unimix Industrial Centre. The Premises were vacant before leasing to Wing Tai Corporation Limited. The terms and conditions of the Tenancy Agreement have been negotiated on an arm’s length basis and the Tenancy Agreement was entered into in the ordinary and usual course of business of the Company. The Board (including the independent non-executive directors) considers that, given the prevailing market conditions, the transaction is fair and reasonable and in the interests of the Company and its shareholders as a whole. The transaction will benefit the Company as it allow its subsidiary to lock in a quality tenant paying rent at market rates for the premises concerned.
REASONS FOR AND BENEFITS OF THE TENANCY AGREEMENT. The current principal place of business of the Company is at the same building of the Premises. In order to cope with the continuous development of the Group, the Premises have been rented for use as the Company’s additional office space. The terms of the Tenancy Agreement were arrived at after arm’s length negotiation between the parties to the Tenancy Agreement. The Directors (including the independent non-executive Directors) are of the view that the Tenancy Agreement has been entered into on normal commercial terms and in the ordinary and usual course of business of the Group, the terms of the Tenancy Agreement are fair and reasonable and that the Tenancy Agreement is in the interests of the Group and the Shareholders as a whole. None of the Directors have a material interest in the Tenancy Agreement. However, in view of good corporate governance practices, Xx. Xxx Xxxxx, being both a Director of the Company and a director of CE Hong Kong, had abstained from voting on the relevant Board resolutions approving the Tenancy Agreement.
REASONS FOR AND BENEFITS OF THE TENANCY AGREEMENT. The Beijing Premises will primarily be used by the Group as the Tenant’s headquarters in Beijing, the PRC. The Directors (including the independent non-executive Directors) consider that the terms of the Tenancy Agreement (including the monthly management fees and monthly rental payable to CB Property Management Co. during the Renovation Period and the term of the tenancy respectively under the Tenancy Agreement, the fees payable to CB Property Management Co. under other related agreements and the annual caps) are on normal commercial terms, fair and reasonable and in the interests of the Shareholders as a whole. Xx. Xxx Xxxx, a non-executive Director, is the Assistant President of CITIC Limited, which is a wholly-owned subsidiary of CITIC Group. Accordingly, Xx. Xxx Xxxx has abstained from voting on the board resolutions approving the entering into of the Tenancy Agreement. Other than this, the Directors do not have a material interest in the Tenancy Agreement. LISTING RULES IMPLICATIONS CB Property Management Co. is a wholly-owned subsidiary of CITIC Group, the ultimate holding company of the Company. Accordingly, the entering into of the Tenancy Agreement constitutes a continuing connected transaction for the Company under Chapter 14A of the Listing Rules. Since the highest applicable percentage ratio set out in Rule 14.07 of the Listing Rules calculated with reference to the annual caps for the Tenancy Agreement is more than 0.1% but less than 5%, such continuing connected transaction is subject to the reporting and announcement requirements but exempt from the independent shareholders’ approval requirement under Chapter 14A of the Listing Rules.
REASONS FOR AND BENEFITS OF THE TENANCY AGREEMENT. As the Group consider that (i) the Premises are suitable for the usage as a manufacturing plant and staff dormitories; and (ii) reasonable rental terms were agreed, the Tenant entered into the Tenancy Agreement with the Landlord. The terms of the Tenancy Agreement have been negotiated on an arm’s length basis between the Tenant and the Landlord and are on normal comercial terms. The monthly rental of the Premises have been arrived at by reference to (i) gross floor area and location of the Premises; (ii) the prevailing market conditions. The Directors, including the independent non-executive Directors, consider that the Tenancy Agreement is entered into after arm’s length negotiations, in the usual and ordinary course of business of the Company and on normal commercial terms which are fair and reasonable and in the interests of the Company and the Shareholders as a whole. Xx. Xxx I-Xxx and Xx Xx Xxx Xxxx are directors of Asia Optical by which AOIL is wholly owned. To avoid any possible conflict of interest, the abovementioned directors have abstained from voting on the relevant Board resolutions approving the Tenancy Agreement and the transactions contemplated thereunder. Save as disclosed above, none of the Directors has a material interest in the transactions contemplated under the Tenancy Agreement and was required to abstain from voting on the relevant Board resolutions approving the Tenancy Agreement and the transactions contemplated thereunder.
