Core Points - The company has approved a proposal regarding the leasing of its properties to enhance asset utilization and improve operational efficiency [1][3][4] - The board meeting was held on December 1, 2025, with all seven directors present, and the proposal was unanimously approved [1][4] - The leasing agreements involve multiple properties located on Huaihai Middle Road in Shanghai, with a focus on long-term rental contracts [3][4][18] Summary by Sections Board Meeting - The 10th meeting of the 10th board of directors was convened on December 1, 2025, with all directors present [1] - The proposal regarding property leasing was passed with 7 votes in favor, 0 against, and 0 abstentions [1][4] Property Leasing Overview - The company has entered into a cooperation agreement with Shanghai Huaye Xingkong Enterprise Management Co., Ltd. for leasing properties located at 795, 795-2, 795-3, and 809 Jia Huaihai Middle Road [3][4] - The leasing aims to activate company assets and improve operational efficiency [3][18] Property Details - Property 1: 795 Huaihai Middle Road, with an area of 8,173.34 square meters, owned by the company [6] - Property 2: 809 Jia Huaihai Middle Road, with an area of 3,013.36 square meters, owned by the company's subsidiary [6] - Property 3: 795-2 and 795-3 Huaihai Middle Road, with a total area of 160.73 square meters, owned by the company [6] Leasing Contracts - The first contract has a rental period of up to 15 years, with the first phase starting from March 8, 2026, to March 7, 2036, and a rental fee of RMB 10.5 million in the first year, increasing by 5% every three years [9][10] - The second contract has a rental period of up to 10 years, starting from March 8, 2026, with a first-year rental fee of RMB 2.47 million, also increasing by 5% every three years [17] - The third contract is for a smaller property with a first-year rental fee of RMB 3.5 million, following the same increment structure [13] Impact on the Company - The leasing agreements are expected to generate stable rental income and optimize the company's operational structure [18] - The long-term nature of the leases may present risks related to non-performance, but the company will actively manage its assets [18]