Beijing Jingkelong (00814) issued an announcement that since the existing lease agreement will expire on December 31, 2023,...
According to the Zhitong Finance App, Beijing Jingkelong (00814) issued an announcement. Since the existing lease agreement expires on December 31, 2023, and the board of directors plans to continue leasing certain properties leased under the existing lease agreement, on December 15, 2023, (i) the company (as the lessee) signed the 2023 Chaofu Leasing Agreement, the 2023 Hongchao Weiye Lease Agreement 1, and the 2023 Jin Chaoyang Lease Agreement with Chaofu Company, Hongchao Weiye, and Jin Chaoyang (each as a lessor) respectively. The lessee) and Hongchao Weiye (as lessor) signed the 2023 Hongchao Weiye Leasing Agreement 2.
Properties to be leased under the 2023 Chaofu Leasing Agreement: the following five properties with a total construction area of 5606.92 square meters in Chaoyang District, Beijing, China (Chaofu Properties): (1) Building 4, Hongmiao Beili, Chaoyang District, Beijing; (2) No. 14, Gaojiayuan District 2, Chaoyang District, Beijing; (3) Building No. 9, Fatou Beili, Chaoyang District, Beijing; (4) South side of Building 22, Nongguangli, Chaoyang District, Beijing; and (5) Building 22, Nongguangli, Chaoyang District, Beijing.
Property to be leased under the 2023 Hongchao Weiye Leasing Agreement: Renew 43 properties with a total construction area of 77794.46 square meters in Chaoyang District, Beijing, China (Hongchao Weiye Property 1).
Property to be leased under the 2023 Hongchao Weiye Leasing Agreement 2: Renew the property located in Building 204, Shuanglong Nanli, Chaoyang District, Beijing, with a total construction area of 9051.6 square meters (Hongchao Weiye Property 2).
The announcement stated that since the Group is mainly engaged in retail and wholesale business of consumer goods for daily use, and mainly operates supermarkets and convenience stores, the Group needs to continue to rent a number of properties leased under existing lease agreements to maintain current retail and wholesale business. Given that the Group has long-term and stable strategic business relationships with Chaofu Company, Hongchao Weiye and Jin Chaoyang, directors (including independent non-executive directors) believe that continuing to lease properties under the 2023 lease agreement from Chaofu Company, Hongchao Weiye and Jin Chaoyang can ensure the stability and continuity of the Group's operations, benefit the Group, and save on administrative costs associated with finding comparable property replacements, as well as capital expenses related to relocation and renovation.