According to Zhitong Finance App, Shangshi City Development (00563) announced that on August 27, 2026, Qianji Shanghai, an indirect wholly-owned subsidiary of the Company, signed a lease agreement with the lessor. Qianji Shanghai agreed to lease the property from the lessor, that is, 12 floors located in building 89 Jiangsu North Road, Changning District, Shanghai, China to operate residential apartments under the Group's brand. The lease can be renewed every three years from the date the independent shareholders approve the lease agreement at the special shareholders' meeting. 
According to reports, the property is part of a building called “Shangyao Xinya Building” located at No. 89 Jiangsu North Road, Changning District, Shanghai, China. The property covers the 3rd to 14th floors of the building, with a total floor area of about 10,359.40 square meters. The property can be used for commercial, office, or residential purposes. Furthermore, according to the lease, the tenant is entitled to use the 12 underground parking spaces in the building free of charge.
The property is located in a prime location in Changning District, Shanghai, at the intersection of the three major commercial districts (Zhongshan Park, Caojiadu and Universal Port). The property has convenient transportation. It is about 700 meters walking distance from Longde Road Station of Metro Line 11 and Line 13. It can be transferred to Line 2, Line 3, Line 4 and Line 14, connecting all major commercial areas in Shanghai, making the property enjoy the transportation advantages of six subway lines in total. The surrounding area also has complete public facilities, business and living facilities, and the density of office staff is high. The property's current physical condition and layout can easily be converted into a residential unit, and no major structural changes are expected. Taken together, these factors significantly reduced the implementation risks and capital expenses required to raise the property to the standard of rentable housing, thereby increasing the Group's overall potential return in this transaction.
Since the lessor group has no operating requirements for the property and is interested in leasing it, the Company believes this is an advantageous opportunity to lease the entire property (i.e. the 12 floors of the building) and further split it into smaller units and sublease it to individual tenants to obtain profits. According to the preliminary operating plan, the property is expected to provide about 240 residential units after completion of renovation, with an average unit area of about 40.5 square meters. The unit types will include single apartments with shared facilities to one-bedroom and two-bedroom apartments. The target audience is young white-collar tenants working in the surrounding Zhongshan Park commercial area.
The company believes that the Zhongshan Park commercial area shows strong rental demand potential, and that there is still a gap in the branded apartment market in the district, and the current supply of branded apartments is limited. As a result, the property can be positioned as a mid-range condominium for white-collar tenants, thus avoiding direct competition with the lower end market. By targeting this underserved market segment, the Group expects to obtain a more stable rental rate and return on rent than in a more saturated market segment, while at the same time establishing a unique brand image in the region.