Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

(incorporated in Hong Kong under the Companies Ordinance with limited liability)

(Stock code: 285)

Website: http://www.byd-electronic.com

CONTINUING CONNECTED TRANSACTIONS SUPPLEMENTAL LEASE AGREEMENTS NEW LEASE AGREEMENTS AND SUPPLEMENTAL COMPREHENSIVE SERVICES MASTER AGREEMENT

Reference is made to the Announcement of the Company dated 6 November 2015 in relation to the renewal of certain continuing connected transactions of the Company including, among others, (i) the leasing of factories and premises by BYD Group to the Group pursuant to the Existing Lease Agreements; and (ii) the sharing of Ancillary Services with the BYD Group pursuant to the Existing Comprehensive Services Master Agreement.

The Board announces that on 28 April 2017, the Group entered into (i) the Supplemental Lease Agreements and the New Lease Agreements; and (ii) the Supplemental Comprehensive Services Master Agreement, with the BYD Group.

As BYD is the controlling Shareholder of the Company indirectly interested in approximately 65.76% of the issued share capital of the Company as at the date of this announcement, each of BYD and its subsidiaries (being the associates of BYD) is a connected person of the Company. Therefore, the transactions contemplated under (i) the Supplemental Lease Agreements and the New Lease Agreements and (ii) the Supplemental Comprehensive Services Master Agreement constitute continuing connected transactions of the Group under Chapter 14A of the Listing Rules.

Since one or more of the applicable percentage ratio stipulated under Rule 14.07 of the Listing Rules in respect of the annual caps under (i) the Existing Lease Agreements (as amended by the Supplemental Lease Agreements) and the New Lease Agreements (on an aggregate basis); and

(ii) the Existing Comprehensive Services Master Agreement (as amended by the Supplemental Comprehensive Services Master Agreement), for the two years ending 31 December 2018 exceed 0.1% but do not exceed 5%, the Continuing Connected Transactions under (i) the Existing Lease Agreements (as amended by the Supplemental Lease Agreements) and the New Lease Agreements (on an aggregate basis); and (ii) the Existing Comprehensive Services Master Agreement (as amended by the Supplemental Comprehensive Services Master Agreement), are subject to the reporting, announcement and annual review requirements, but exempt from the independent shareholders' approval requirement under Chapter 14A of the Listing Rules.

  1. INTRODUCTION

    Reference is made to the Announcement of the Company dated 6 November 2015 in relation to the renewal of certain continuing connected transactions of the Company including, among others, (i) the leasing of factories and premises by BYD Group to the Group pursuant to the Existing Lease Agreements and (ii) the sharing of Ancillary Services with the BYD Group pursuant to the Existing Comprehensive Services Master Agreement.

    The Board announces that on 28 April 2017, the Group entered into (i) the Supplemental Lease Agreements and the New Lease Agreements; and (ii) the Supplemental Comprehensive Services Master Agreement, with the BYD Group.

  2. CONTINUING CONNECTED TRANSACTIONS
  3. Leasing of factories and premises by BYD Group to the Group

    As disclosed in the Announcement, the Group has entered into the Existing Lease Agreements with BYD Group. On 28 April 2017, the Group entered into the Supplemental Lease Agreements to such Existing Lease Agreements. A summary of the principal terms of the Supplemental Lease Agreements is set out below.

  4. Supplemental Lease Agreements

  5. Supplemental Baolong Lease Agreement

    Pursuant to the Existing Baolong Lease Agreement entered into on 6 November 2015 between BYD and BYD Precision (an indirect wholly-owned subsidiary of the Company), BYD has agreed to lease to BYD Precision certain factory and office premises situated at 深圳市龍崗區寶龍工業 園 (Baolong Industrial Park, Longgang District, Shenzhen*) with an aggregate gross floor area of 282,245.76 square metres at a monthly rental of RMB1,975,720.32, settled on a quarterly basis, for a term commencing from 1 January 2016 to 31 December 2018.

    On 28 April 2017, BYD and BYD Precision entered into the Supplemental Baolong Lease Agreement to adjust (i) the aggregate leasing area under the Existing Baolong Lease Agreement to a gross floor area of not exceeding 325,842.71 square metres; and (ii) the monthly rental to not exceeding RMB6,806,381.47, with effect from 1 May 2017.

    Save as disclosed above, all other terms and conditions of the Existing Baolong Lease Agreement remain unchanged.

  6. Supplemental Huizhou Lease Agreement

    Pursuant to the Existing Huizhou Lease Agreement entered into on 6 November 2015 between BYD Huizhou (a 55% directly owned and 45% indirectly owned subsidiary of BYD) and Huizhou Electronic (an indirect wholly-owned subsidiary of the Company), BYD Huizhou has agreed to lease to Huizhou Electronic certain factory buildings situated at 惠州市大亞 灣經濟技術開發區響水河 (Xiangshui River, Dayawan Economic Technology Development District, Huizhou*) with an aggregate gross floor area of 82,442 square metres at a monthly rental of RMB577,094, settled on a quarterly basis, for a term commencing from 1 January 2016 to 31 December 2018.

    On 28 April 2017, BYD Huizhou and Huizhou Electronic entered into the Supplemental Huizhou Lease Agreement to adjust (i) the aggregate leasing area under the Existing Huizhou Lease Agreement to a gross floor area of not exceeding 392,321.91 square metres; and (ii) the monthly rental to not exceeding RMB4,707,862.92, with effect from 1 May 2017.

    Save as disclosed above, all other terms and conditions of the Existing Huizhou Lease Agreement remain unchanged.

  7. Supplemental Beijing Lease Agreement

    Pursuant to the Existing Beijing Lease Agreement entered into on 6 November 2015 between BYD Beijing (a 75.625% directly owned and 24.238% indirectly owned subsidiary of BYD) and BYD Precision (an indirect wholly-owned subsidiary of the Company), BYD Beijing has agreed to lease to BYD Precision certain premises situated at the 3rd and 4th floors and part of the 2nd floor of certain factory building at 北京市通洲區科創 東五街1號 (No. 1 Kechuang East Fifth Street, Tongzhou District, Beijing*), with an aggregate area of approximately 7,105 square metres at a monthly rental of RMB76,023.50, settled on a monthly basis, for a term commencing from 1 January 2016 to 31 December 2018.

    On 28 April 2017, BYD Beijing and BYD Precision entered into the Supplemental Beijing Lease Agreement to adjust (i) the aggregate leasing area under the Existing Beijing Lease Agreement to a gross floor area of not exceeding 6,911.38 square metres; and (ii) the monthly rental to not exceeding RMB138,227.60, with effect from 1 May 2017.

    Save as disclosed above, all other terms and conditions of the Existing Beijing Lease Agreement remain unchanged.

  8. Supplemental Xi'an Lease Agreement

    Pursuant to the Existing Xi'an Lease Agreement entered into on 6 November 2015 between BYD Auto (a 99% directly owned subsidiary of BYD) and BYD Xi'an (an indirect wholly-owned subsidiary of the Company), BYD Auto has agreed to lease to BYD Xi'an certain factory and premises situated at 西安市高新區新型工業園亞迪路二號 (2 Yadi Road, Xinxing Industrial Area, Gaoxin District, Xi'an City*), with an aggregate area of approximately 43,911.38 square metres at a monthly rental of RMB658,670.70, settled on a monthly basis, for a term commencing from 1 December 2015 to 30 November 2018.

    On 28 April 2017, BYD Auto and BYD Xi'an entered into the Supplemental Xi'an Lease Agreement to adjust (i) the aggregate leasing area under the Existing Xi'an Lease Agreement to a gross floor area of not exceeding 184,682.08 square metres; (ii) the monthly rental to not exceeding RMB3,693,641.60, with effect from the date of this Supplemental Lease Agreement; and (iii) the term of the lease to 31 December 2018. This Supplemental Lease Agreement shall be effective on 1 May 2017.

    Save as disclosed above, all other terms and conditions of the Existing Xi'an Lease Agreement remain unchanged.

  9. Supplemental Xi'an Land Lease Agreement

  10. Pursuant to the Existing Xi'an Land Lease Agreement entered into on 6 November 2015 between BYD Auto (a 99% directly owned subsidiary of BYD) and BYD Xi'an (an indirect wholly-owned subsidiary of the Company), BYD Auto has agreed to lease to BYD Xi'an certain land situated at 西安市高新區新型工業園亞迪路二號 (2 Yadi Road, Xinxing Industrial Area, Gaoxin District, Xi'an City*), with an aggregate area of approximately 26,000 square metres at a monthly rental of RMB78,000, settled on a monthly basis, for a term commencing from 1 January 2016 to 31 December 2018.

    On 28 April 2017, BYD Auto and BYD Xi'an entered into the Supplemental Xi'an Land Lease Agreement to adjust (i) the aggregate leasing area under the Existing Xi'an Land Lease Agreement to not exceeding 28,600 square metres and; (ii) the monthly rental to not exceeding RMB143,000, with effect from 1 May 2017.

    Save as disclosed above, all other terms and conditions of the Existing Xi'an Land Lease Agreement remain unchanged.

BYD Electronic (International) Co. Ltd. published this content on 28 April 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 28 April 2017 15:19:15 UTC.

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