Beijing Capital Jiaye Property Services Co., Limited (Beijing Jiaye) has signed a relocation compensation agreement dated 27 March 2026 with Haicheng Xingtai, its parent Beijing Urban Construction Group (BUCG), and related parties. Under the terms, Haicheng Xingtai will pay the Beijing Jiaye group a total of RMB57.81 million to offset losses stemming from the compulsory closure and removal of the Group’s wholly owned Xingfa Gas Station in Beijing’s Haidian District.
The compensation covers the termination of Xingfa’s operating rights and the dismantling of on-site buildings, structures and equipment occupying a 1,788.94 m² site. Payment will be made in two tranches: an initial 80% (RMB46.25 million) within 20 days of the agreement’s effective date upon handover of vacated premises, followed by the remaining 20% (RMB11.56 million) once final clearance conditions are met. Funds will be remitted directly to designated accounts of Beijing Jiaye and its wholly owned subsidiary, Beijing Urban Construction Group Properties (BUCGP).
Management estimates an unaudited net gain of approximately RMB48.17 million from the transaction after deducting an appraised RMB3.64 million value of relocated assets and about RMB6 million in relocation expenses. The proceeds will be used as general working capital.
Because BUCG is Beijing Jiaye’s controlling shareholder (combined 74.15% stake), and Haicheng Xingtai is an associate of BUCG, the agreement constitutes a connected transaction under Chapter 14A of the Hong Kong Listing Rules; it is also a disclosable transaction under Chapter 14, with applicable percentage ratios exceeding 5% but below 25%. The deal therefore requires reporting, announcement, and approval by independent shareholders. BUCG and its associates will abstain from voting at the forthcoming general meeting. A circular with full details and an independent financial adviser’s opinion is slated for dispatch on or before 29 April 2026.
The relocation aligns with Haidian District’s urban village reconstruction agenda, while the agreement delineates each party’s responsibilities, aiming to mitigate legal and compliance risks and protect shareholder interests.