Luzhou Laojiao Co.,Ltd announced reference is made to the announcement of the Bank dated August 29, 2024 in relation to, among other things, the entering into of the Existing Property Services Agreement between Luzhou Bank Co. Ltd. (the Bank) and Luzhou Laojiao Property Service Co. Ltd. (Laojiao Property Service), an indirect wholly-owned subsidiary of Luzhou Laojiao Group Co.
Ltd. on August 29, 2024. The Existing Property Services Agreement and its annual cap will expire on July 23, 2025. Pursuant to the terms of the Existing Property Services Agreement, during the service period, the Bank will decide whether to enter into a service contract for the following year based on the quality of the services provided by Laojiao Property Service and the Bank's assessment and evaluation of Laojiao Property Service.
After the Bank's assessment and evaluation of the services provided by Laojiao Property Service, the Bank has decided to engage Laojiao Property Service to continue to provide integrated property services to the Bank for the Business Building of the Head Office. On July 17, 2025, the Bank entered into the Property Services Agreement with Laojiao Property Service. The term of the Property Services Agreement is from July 24, 2025 to July 23, 2026, with a maximum annual property service fee (tax inclusive) of RMB 8,980,000.
Parties: The Bank; and Luzhou Laojiao Property Service Co. Ltd., as the service provider. Term: From July 24, 2025 to July 23, 2026.
During the service period, the Bank will decide whether to enter into the service contract for the following year based on the quality of services provided by Laojiao Property Service and the Bank's evaluation of Laojiao Property Service. Subject matter: Laojiao Property Service shall provide integrated property services for the Business Building of the Head Office during the term of the Property Services Agreement. Property services include, but are not limited to, comprehensive property management, customer (conference) service management, project management, management of security order maintenance, management of environmental maintenance and management of catering services.
Service fee and payment arrangements: The maximum annual property service fee (tax inclusive) under the Property Services Agreement is RMB 8,980,000, which translates into a monthly service fee (tax inclusive) of RMB 748,333.34, and the service fee shall be settled on a monthly basis based on the actual number of people served within such monthly service fee. The service fee may be elevated by the parties by way of a separate supplementary agreement, according to the staffing needs for the Bank's property service. In the event that the final amount of the service fee exceeds the aforesaid amount, the Bank will, if necessary, make appropriate disclosure separately in accordance with the requirements of the Listing Rules in due course. The Bank shall pay the property service fee to Laojiao Property Service on a monthly basis for the services provided under the Property Services Agreement.
Before making the monthly payment, the Bank shall assess the quality of the property services provided by Laojiao Property Service for that month, and the property service fee shall only be paid if the property services provided meet the corresponding standards. The total assessment score is set at 100, and the actual amount of the property service fee payable by the Bank shall be adjusted according to the following mechanism: in the case where the total score of the monthly assessment is 90 or above, the Bank shall pay the property service fee for that month in full; in the case where the total score of the monthly assessment is between 80 and 89, the Bank shall deduct 1% from the property service fee for that month as a penalty; in the case where the total score of the monthly assessment is between 70 and 79, the Bank shall deduct 5% from the property service fee for that month as a penalty; in the case where the total score of the monthly assessment is between 60 and 69, the Bank shall deduct 10% from the property service fee for that month as a penalty; and in the case where the total score of the monthly assessment is below 60, the Bank shall deduct 20% from the property service fee for that month as a penalty. Additionally, if the assessment score is below 80 for three consecutive months, or if inadequate service or management by Laojiao Property Service leads to negative impacts or unfavorable comments on the Bank, or causes complaints or negative evaluations from higher authorities regarding the Bank, the Bank reserves the right to terminate the Property Services Agreement and hold Laojiao Property Service accountable for any breach of agreement.
Pricing basis: The maximum annual property service fee is determined through the Bank's procurement process, which was conducted in the form of public tender, after arm's length negotiation between the parties on normal commercial terms and taking into account the following factors: the location, type and scale of the property; the scale, scope, content and standard of the services to be provided; the anticipated operational cost for providing such services; the historical service fee charged by the former independent third-party service provider for the provision of integrated property services for the Business Building of the Head Office; and the prevailing market fee generally charged by independent third-party service providers for provision of similar services.
