China ZhengTong Auto Services Holdings Limited (ZHENGTONGAUTO) executed a Property Lease and Services Framework Agreement with controlling shareholder Xiamen ITG Holding Group Co., Ltd. on 16 July 2026. The agreement covers the lease of various premises—primarily 4S store sites, offices and parking spaces—together with related property management and ancillary services for the period from 16 July 2026 to 15 July 2027.

The annual transaction cap is set at RMB20.00 million, reflecting anticipated increases in leased space and service scope following the recent acquisition of Xiamen Xindeco ITG Automobile Group. For reference, aggregated historical payments to ITG Holding-equivalent entities (restated to include the acquired units) were RMB8.30 million in 2023, RMB10.39 million in 2024 and RMB12.60 million in 2025.

Pricing for each specific lease will be negotiated at arm’s length, benchmarked against prevailing market rates for comparable properties and services. Ahead of signing individual contracts, the Group will conduct market searches and data comparisons to ensure terms are no less favourable than those offered by independent third parties.

Given that ITG Holding controls approximately 90.71% of ZHENGTONGAUTO, the arrangement constitutes a continuing connected transaction under Chapter 14A of the Hong Kong Listing Rules. The highest applicable percentage ratio exceeds 0.1% but remains below 5%, triggering reporting, annual review and announcement requirements while exempting the deal from independent shareholders’ approval.

To keep the transaction volume within the stipulated cap and safeguard minority interests, ZHENGTONGAUTO has instituted internal monitoring by its administrative and finance departments, with annual reviews to be conducted by external auditors and the company’s independent non-executive directors.

Management cites continuity of operations, avoidance of relocation and renovation costs, and access to a reliable property services provider as primary reasons for entering the framework agreement. Directors connected to ITG Holding abstained from voting on the board resolution; all remaining directors consider the terms fair, reasonable and in the company’s ordinary course of business.