We attach herewith the announcement made to The Stock Exchange of Hong Kong Limited ("The HKEx") on 9 September 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 major transaction on the renewal of tenancy in Nanchang City, Jiangxi Province, the People's Republic of China ("PRC").
On 9 September 2026, PRGL had announced that Jiangxi Parkson Retail Co., Ltd., an indirect wholly-owned subsidiary of PRGL, had on even date entered into the Nanchang Renewal Agreement with Jiangxi Kaimei Development Co., Ltd. in respect of the renewal of the tenancy of a basement-level floor and levels 1 to 4 above the ground floor of the premises located at No. 177, Zhongshan Road, Nanchang City, Jiangxi Province, the PRC ("Nanchang Property") for a term from 1 January 2027 to 31 December 2041 ("Nanchang Renewal Agreement").
Pursuant to the International Financial Reporting Standard 16 - Leases, the PRGL Group is to recognise the Nanchang Property as a right-of-use asset. The entering into of the Nanchang Renewal 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"), with consideration of approximately Rmb185.0 million (equivalent to approximately RM111.0 million), calculated based on the present value of the rent payments under the Nanchang Renewal Agreement ("Acquisition of Asset").
For the purpose of this announcement, an exchange rate of Rmb1.00: RM0.60 is assumed.
The entering into of the Nanchang Renewal Agreement constitutes a major transaction for PRGL as the highest applicable percentage ratio exceeds 25% but is less than 100%, and is therefore subject to announcement, circular and shareholders' approval requirements under Chapter 14 of the Listing Rules. In this regard, the written approval of a closely allied group of shareholders interested in an aggregate of 1,448,270,000 ordinary shares of HK$0.02 each, representing approximately 54.97% of the total number of issued shares of PRGL, on the entering into of the Nanchang Renewal Agreement and the transactions contemplated thereunder has been accepted in lieu of holding a general meeting of PRGL pursuant to Rule 14.44 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 2025.