To all lessees,

To implement the Policy Measures of Shanghai Municipality for Going All Out to Fight the Epidemic and Promote the Development of Enterprises, the Detailed Rules of Shanghai Municipality for Reduction and Exemption of House Rent for Micro and Small Enterprises and Individual Businesses released by the Shanghai Municipal State-owned Assets Supervision and Administration Commission (SHSASAC), as well as the policy for reduction and exemption of house rent for micro and small enterprises and individual businesses, ease the burden of micro and small enterprises and individual businesses, and help them out, we hereby issue an announcement as follows on relevant matters:

I Implementation Subjects

Shanghai State-Owned Assets Management Co., Ltd. under Shanghai International Group Co., Ltd. and its subsidiary: Shanghai Guozhi Property Development Co., Ltd.; SIG Asset Management Co., Ltd. and its subsidiaries: Shanghai International Group Mansion Co., Ltd., New Shanghai International Building Co., Ltd., Shanghai Qiaohe Property Co., Ltd., Sofitel Shanghai Hyland Co., Ltd., Fudan SIG Academic Exchange Center and Shanghai Xiayang Lake Investment Management Co., Ltd.

II Applicable Targets

Micro and small enterprises and individual businesses (hereinafter referred to as "final lessees") that finally lease houses from the above-mentioned implementation subjects for production and operation purposes. Micro and small enterprises shall be identified in accordance with the Measures for Dividing Large, Medium, Small and Micro Enterprises Statistically (2017) and the Notice on Printing and Issuing the Regulations on the Standard of Financial Enterprise Division (Yin Fa [2015] No. 309); individual businesses refer to operators registered as "individual businesses" on business licenses.

III Ways of Rent Reduction and Exemption

(i) Period of reduction and exemption

The implementation subjects shall partly exempt final lessees from rent in 2022.

First, all final lessees in the areas involved may be exempt from three months of rent in 2022; and be entitled to proportional exemption if the term of lease is less than one year in 2022.

Second, during the validity period of lease contracts, the final lessees in the sub-districts (towns) identified as medium and high-risk epidemic areas for COVID-19 in 2022, or those that have been closed down, suspended operations and been subject to property requisition as required by relevant departments, or those that have posted annual losses may be exempt from an extra three months of rent in 2022 upon submitting any of the above-mentioned evidentiary materials (6 months of rent in total). Final lessees may be entitled to proportional exemption if the term of lease is less than one year in 2022.

(iii) Ways of exemption and reduction

Under the principles of convenience and efficiency, the implementation subjects may reduce or exempt rent in ways such as direct exemption, deduction from future rent and refund.

Only final lessees, rather than sublessors, are entitled to the reduction and exemption policy.

IV Application and Acceptance

(i) Shanghai State-Owned Assets Management Co., Ltd.

1. Service window

Service hours: 9:00 AM-5:30 PM (Monday-Friday)

2. Application materials

The applicant shall submit stamped materials as follows, including

(a) Rent exemption application;

(b) The lease contract signed by the applicant with the implementation subject or the sublessor;

(c) The duplicate of the applicant's new business license;

(d) The name of the applicant's controlling shareholder and equity ratio;

(e) The applicant's financial statements (balance sheets, income statements) and tax returns in 2021, as well as other evidentiary materials of small and micro enterprises (e.g. the notice of social insurance premium payment containing the number of employees issued by Shanghai in December 2021);

(f) Evidentiary materials of medium and high-risk epidemic areas for COVID-19, or notices of closedown, suspension and requisition issued by relevant departments; and

(g) Other materials required by the implementation subject.

3. Ways of acceptance

The application shall be examined and verified before being accepted online or offline, scanned copies of application materials shall be sent to the dedicated mailbox, and stamped originals shall be submitted before the application deadline.

The applicant shall be responsible for the authenticity and integrity of the information and relevant materials provided, and bear full responsibility for any consequences thus incurred if application materials are verified to be unauthentic.

4. Application deadline

Reduction and exemption: May 20, 2022 for current lessees; one week after the date of lease for new lessees in 2022. Any lessee that fails to apply within the time limit shall be deemed to have waived the right.

Extra reduction and exemption: Any lessee that fails to apply before January 6, 2023 shall be deemed to have waived the right.

(ii) SIG Asset Management Co., Ltd.

1. Service windows

      Service hours: 9:00 AM-5:30 PM (Monday-Friday)

2. Application materials

The applicant shall submit stamped materials as follows, including

(a) Rent exemption application;

(b) The lease contract signed by the applicant with the implementation subject or the sublessor;

(c) The duplicate of the applicant's new business license;

(d) The applicant's company information, including industry, business scope, the number of employees, revenues, total assets and size;

(e) The applicant's financial statements and audit reports in 2021, as well as other supporting documents that can prove the applicant meets the standards of small and micro enterprises (including evidentiary materials of the actual controller);

(f) Power of attorney for rent reduction and exemption application, which shall contain information including the contact and its telephone (mobile phone) number; and

(g) Other materials required by the implementation subject.

3. Ways of acceptance

The applicant shall, in ways such as e-mail and express delivery, directly file a rent reduction and exemption application with the implementation subject that has signed a lease contract with the applicant, and submit relevant documents.

If the applicant meets the requirements of rent reduction and exemption upon examination, examination opinions shall be offered in writing. The amount of rent reduction and exemption for the applicant shall be subject to a written notice.

The applicant shall honestly submit information and materials, and be responsible for the authenticity, accuracy and integrity of submitted information and application materials. If the information and materials submitted by the applicant are found to be unauthentic, inaccurate and incomplete, the implementation subject has the right to reject the application and require the applicant to return the reduced or exempted part.

4. Application deadline

Reduction and exemption: May 20, 2022 for current lessees; one week after the date of lease for new lessees in 2022. Any lessee that fails to apply within the time limit shall be deemed to have waived the right.

Extra reduction and exemption: Any lessee that fails to apply before January 6, 2023 shall be deemed to have waived the right.

V Consultation and Supervision

(i) Shanghai International Group Co., Ltd.

(ii) Shanghai State-Owned Assets Management Co., Ltd.

 (iii) SIG Asset Management Co., Ltd.

VI Others

In case of any policy adjustment by Shanghai or SHSASAC during the implementation of the policy, we will adjust the above-mentioned matters accordingly.

This announcement is hereby issued.