Scorching Dragon Holdings Limited (S. DRAGON) has terminated a previously announced two-year lease for Shop B, Ground Floor, Laws Commercial Plaza, No. 788 Cheung Sha Wan Road, Kowloon, and simultaneously executed a revised 18-month tenancy for the same premises.

The earlier agreement, signed on 10 July 2026 and classified as a major transaction under Chapter 19 of the GEM Listing Rules, was cancelled on 30 July 2026 through a termination agreement between indirect subsidiary TF F&B Limited and landlord Land City International Limited. Both parties waived all claims, and the initial HK$0.15 million deposit paid under the original contract is being carried forward to the new arrangement.

Under the New Letter of Offer, the tenancy begins on 1 August 2026 and ends on 31 January 2028, with an option for a further 18-month renewal. Key commercial terms include: • Monthly basic rent: HK$0.15 million (inclusive of management and air-conditioning fees). • Turnover rent: 12 % of monthly gross takings above HK$1.00 million, payable in arrears. • Rent-free period: 45 days (1 Aug – 14 Sep 2026). • Security deposit: HK$0.60 million, including the HK$0.15 million initial deposit. • Renewal terms: minimum monthly basic rent of HK$0.15 million and turnover rent of 14 % on sales exceeding HK$1.00 million.

The arrangement enables earlier site access for fitting-out works and trims overall rental exposure versus the cancelled two-year lease. The premises will house “Tong Arch Joie Kitchen,” a modern Hong Kong-style restaurant slated to open in August 2026, expanding the Group’s Cantonese dining portfolio, which already includes three outlets launched in 2026.

In accordance with HKFRS 16, the new lease will result in recognition of a right-of-use asset of approximately HK$2.40 million. Because the relevant percentage ratios exceed 5 % but remain below 25 %, the deal is deemed a discloseable transaction; only announcement and notification requirements apply, with no need for shareholder approval.

Trading in S. DRAGON shares has been suspended since 20 October 2025 and will remain so pending fulfilment of resumption guidance. Stakeholders are advised to exercise caution when dealing in the company’s securities.