We attach herewith the announcement made to The Stock Exchange of Hong Kong Limited ("The HKEx") on 13 March 2026 by Parkson Retail Group Limited ("PRGL"), listed on The HKEx and a 54.97% owned subsidiary of Parkson Holdings Berhad ("PHB" or the "Company") in relation to the discloseable transaction on the renewal of tenancy in Mianyang City, Sichuan Province, the People’s Republic of China ("PRC") ("Property").
On 13 March 2026, PRGL had announced that Mianyang Fulin Parkson Plaza Co., Ltd., an indirect wholly-owned subsidiary of PRGL, had on even date entered into a renewal tenancy agreement with Sichuan Mianyang Fulin Real Estate Development Co., Ltd. in respect of the renewal of the tenancy of the Property for a term of 10 years, commencing from 25 October 2027 ("Mianyang Renewal Agreement").
Pursuant to the International Financial Reporting Standard 16 – Leases, the PRGL Group is to recognise the Property as a right-of-use asset. The entering into of the Mianyang Renewal Agreement 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"), with consideration of approximately Rmb72 million (equivalent to approximately RM41 million), being the present value of the rent payments under the Mianyang Renewal Agreement ("Acquisition of Asset").
For the purpose of this announcement, an exchange rate of Rmb1.00: RM0.57 is assumed.
The entering into of the Mianyang Renewal Agreement constitutes a discloseable transaction for PRGL as the highest applicable percentage ratio exceeds 5% but is less than 25%, 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 2026 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.