F-1/A: Shanghai Supreme Tech Leases Office Space in Shanghai's Putuo District

Shanghai Supreme Technology Co., Ltd. secures a one-year lease for office space in Shanghai's Putuo District, commencing December 20, 2024.

Summary

• Shanghai Supreme Technology Co., Ltd. has entered into a lease agreement with Shanghai XiYang Property Management Co., Ltd. for property located at Room 903, 1288 Zhen Nan Road, Putuo District, Shanghai.
• The lease covers a floor area of approximately 372.59 square meters designated for industrial use as a business office.
• The lease term is from December 20, 2024, to December 19, 2025.
• The monthly rent is RMB 36,265.40, with a payment structure of '3 months' rent as deposit plus 2 months' rent,' totaling RMB 108,796.20 for the deposit and RMB 72,530.80 for the security deposit.
• The property management fee is RMB 8.00 per square meter per month, payable quarterly to Kangjian Plaza Property Management Company.
• The agreement outlines rights and obligations for both parties regarding property use, maintenance, and potential contract termination.

Sentiment

Score: 7

Explanation: The document is a standard lease agreement, indicating a neutral to slightly positive sentiment due to the company securing necessary operational space.

Positives

• The lease agreement includes a rent reduction of two months if Party B fulfills the contract as agreed and does not commit any breach of contract during the lease term.
• Party A allows Party B to design and renovate the property according to its business needs.

Negatives

• Party B is responsible for paying all other expenses incurred from commercial activities conducted in the property.
• Party B must obtain written consent from Party A for subleasing.
• Neither party shall unilaterally terminate the contract without authorization, otherwise, the defaulting party shall be liable for breach of contract and shall compensate the non-defaulting party with a penalty equivalent to 3 months' rent as stipulated in this contract.

Risks

• Unauthorized changes to the property's use can result in contract termination.
• Failure to pay rent or property management fees on time can lead to contract termination and deposit confiscation.
• Unilateral termination of the contract results in penalties.
• Party B is responsible for the safety of individuals and property within the leased property during the lease term.

Future Outlook

The lease provides Shanghai Supreme Technology Co., Ltd. with office space for one year, with potential for renewal upon mutual agreement.

Industry Context

This lease agreement reflects standard practices in Shanghai's commercial property market, with terms addressing rent, property management, and usage rights.

Comparison to Industry Standards

• The lease rate of 3.2 yuan/square meter/day is within the typical range for industrial-zoned office spaces in Putuo District, Shanghai, but specific comparisons would require more granular data on comparable properties.
• Companies like Regus or WeWork offer flexible office solutions, but this lease provides dedicated space, which may be more suitable for Shanghai Supreme Technology Co., Ltd.'s needs.
• The lease terms, including deposit and payment schedules, are consistent with standard commercial leasing practices in China.

Stakeholder Impact

• Shareholders: Securing office space supports ongoing business operations.
• Employees: Provides a physical location for work.
• Customers: Ensures continued service and operations.

Next Steps

• Shanghai Supreme Technology Co., Ltd. will take possession of the property on December 20, 2024.
• Party B will submit design drawings and construction plans to Party A prior to commencing any renovation.
• Party B will need to apply for internet access through Party A.

Key Dates

Keywords

lease agreement, Shanghai Supreme Technology, Shanghai XiYang Property Management, property lease, commercial lease, office space, industrial property, rent, security deposit, property management fees