We refer to the Company’s announcement dated 1 August 2025 in relation to the announcement made to The Stock Exchange of Hong Kong Limited (“The HKEx”) by Parkson Retail Group Limited (“PRGL”), a 54.97% owned subsidiary of Parkson Holdings Berhad (“PHB” or the “Company”) listed on The HKEx, in relation to the successful tender for a tenancy of the property in Mianyang City, Sichuan Province, the People’s Republic of China (“PRC”) (“Earlier Announcement”).
Unless otherwise stated, the terms used throughout this announcement shall have the same meaning as defined in the Earlier Announcement.
On 20 August 2025, PRGL had announced the entering into of a cooperation agreement on even date between Mianyang Shangma Parkson Plaza Commercial Management Co., Ltd. (“Tenant”), an indirect wholly-owned subsidiary of PRGL, and Mianyang New Investment Industrial Co., Ltd. in respect of the tenancy of Level 5 of the Talent Apartments Project located at Mianyang Science and Technology City New District in Mianyang City, Sichuan Province, the PRC (“Property”) for a term of 20 years, commencing from the actual date on which the Tenant begins commercial operations at the Property, tentatively scheduled for 1 July 2026 (“Cooperation Agreement”) (“Tenancy”). A copy of PRGL’s announcement is attached herewith.
Pursuant to the International Financial Reporting Standard 16 - Leases (“IFRS 16”) issued by the International Accounting Standards Board, the Tenancy under the Cooperation Agreement requires the PRGL Group to recognise the Property as a right-of-use asset, the amount of which is approximately Rmb14.3 million (equivalent to approximately RM8.4 million). Thus, the entering into of the Cooperation Agreement and the transactions contemplated thereunder will be regarded as an acquisition of asset by the PRGL Group under the Rules Governing the Listing of Securities on The HKEx (“Listing Rules”) (“Acquisition of Asset”).
For the purpose of this announcement, an exchange rate of Rmb1.00: RM0.59 is assumed.
As the highest applicable percentage ratio in respect of the consideration for the Acquisition of Asset recognised by the PRGL Group pursuant to IFRS 16 is more than 5% but less than 25%, the entering into of the Cooperation Agreement constitutes a discloseable transaction for PRGL, and is therefore subject to reporting and announcement requirements but is exempted from circular and shareholders’ approval requirements under Chapter 14 of the Listing Rules.
The Acquisition of Asset does not have a material impact on the earnings of the PHB Group for the financial year ending 31 December 2025 and the net assets of the PHB Group based on the audited consolidated statement of financial position of the Company as at 31 December 2024.