Yuexiu Services Group Limited (06626) announced the signing of a 2026 Bank Deposits and Ancillary Services Agreement with Chong Hing Bank (CHB), a subsidiary of Yue Xiu Enterprises (Holdings) Limited (YXE) and therefore a connected person under the Listing Rules. This new arrangement renews the terms of the expiring 2023 Bank Deposits Agreement and broadens its scope to include additional deposit-related services.

According to the announcement, the 2023 Bank Deposits Agreement is set to expire on 31 December 2025. The newly signed agreement will commence on 1 January 2026, subject to approval by independent shareholders, and continue until 31 December 2028. Under the agreement, Yuexiu Services may place deposits with CHB and receive ancillary services such as potential dividend distribution. The aggregate highest daily outstanding balance is capped at RMB2.5 billion for each of 2026, 2027, and 2028, reflecting anticipated cash needs and possible major transactions of the group.

CHB’s interest rates and other terms will be aligned with market standards. The final rates are determined with reference to offers from at least two other independent banks in Hong Kong or Chinese Mainland and, where relevant, benchmarked against rates set by the People’s Bank of China. The agreement also stipulates that no additional service fees will be charged for ancillary services.

Because CHB is considered a connected person of Yuexiu Services under the Listing Rules, and the highest applicable percentage ratio for deposit caps exceeds 5%, the agreement constitutes a continuing connected transaction. It is subject to reporting, announcement, annual review, and independent shareholders’ approval requirements. A circular providing further details, including advice from an independent financial adviser, will be dispatched to shareholders on or before 5 December 2025. The announcement cautions that the agreement and its transactions may or may not proceed, depending on the outcome of the shareholder vote.