Shirble Department Store Holdings (China) Limited (00312) released an announcement regarding a connected transaction on the further extension of outstanding consultancy fees. The total overdue amount of RMB347.40 million, with approximately RMB16.30 million in accrued interest, will now be settled by 31 December 2030. Interest on the principal will continue to accrue from 1 January 2023 at the three-year RMB fixed deposit benchmark rate published by China Construction Bank.

The company attributes the extension to continued weakness in China’s real estate market, which affected the development and sales progress of the underlying property project. Priority of cashflows generated from the project is assigned to construction costs and bank loans under a government-supervised arrangement, leaving limited funds for other payables.

Shirble plans to convene an extraordinary general meeting (the “2026 EGM”) on 19 March 2026 to seek independent shareholders’ approval on the settlement extension. The company noted that if the agreement is not approved, it may initiate legal proceedings to reclaim the outstanding amount. The board believes that agreeing to extend the payment schedule would provide a more practical opportunity to recover the overdue sum than other available options.