On 25 November 2025, Sundy Service Group Co. Ltd (Stock Code: 9608) released a supplemental announcement regarding (i) the acquisition of a property and (ii) the renewal of connected transactions for 2026 to 2028. The announcement supplements details initially disclosed on 19 November 2025.
The announcement clarifies that the property in question has not been leased during the two preceding financial years, resulting in no rental income or net profit for that period. Under International Financial Reporting Standards 16, the Group will recognize right-of-use assets and corresponding liabilities once any leased premises are made available for use.
The announcement states that annual caps for right-of-use assets under the new master lease arrangement are set at RMB12 million for each of the three years ending 31 December 2026, 2027, and 2028. These caps account for short-term lease expenses and variable rental payments tied to sales generated from the leased premises.
Details about the pricing policies for related property management services are also provided. Service fees are generally determined through a bidding or selection process and are guided by factors including project size, location, and budgeted operational expenses. In cases lacking local government pricing guidance, arm’s length negotiations and comparisons with historical and market data are used to determine fees.
For purchases under the new master purchase agreement involving beverages or food items subject to government-regulated pricing, the announcement references adherence to established national regulations. For items not covered by such regulations, prevailing market prices and comparisons with independent suppliers form the basis of pricing. If quotations from independent sources offer more favorable terms, the transaction with the related party will not proceed.
According to the supplemental announcement, all other material information remains unchanged from the initial 19 November 2025 announcement. The Board of Sundy Service Group Co. Ltd currently consists of four executive directors and three independent non-executive directors.