On 23 February 2026, 1957 & Co. (Hospitality) Limited (Stock Code: 8495) reported that a new tenancy agreement was signed for the lease renewal of Shop No. 108 on Level 1 of East Point City in Tseung Kwan O. The agreement extends the term for three years, from 19 April 2026 to 18 April 2029, enabling continued operation of the Shanghainese restaurant under the Modern Shanghai brand.

According to the announcement, the monthly basic rental is approximately HK$0.30 million, with service and management charges of about HK$0.09 million and a promotion levy of about HK$0.01 million, all payable in advance. The transaction also includes a turnover rent of 11.50%, charged in arrears each month if applicable. The new tenancy agreement’s total consideration is approximately HK$10.90 million, covered by internal resources. A deposit of about HK$1.20 million currently held under the existing lease will be retained as the security deposit under the new terms.

In accordance with HKFRS 16, the renewal leads to recognition of a right-of-use asset amounting to about HK$10.10 million, representing the present value of lease payments, initial direct costs, and estimated reinstatement costs, discounted at around 5.03%. This renewal qualifies as a discloseable transaction under Chapter 19 of the GEM Listing Rules, as its applicable percentage ratio exceeds 5% but is below 25%, requiring reporting and announcement but not shareholder approval.

The existing tenancy agreement expires on 18 April 2026, and the company indicates that renewing this lease should positively benefit ongoing operations, given the historical performance of the restaurant. 1957 & Co. (Hospitality) Limited and its subsidiaries principally engage in operating full-service restaurants in Hong Kong and the People’s Republic of China. The tenant, Modern Shanghai (YOHO Midtown) Restaurant Limited, is an indirect 60%-owned subsidiary of 1957 & Co. (Hospitality) Limited.