Ares Asia Limited has executed a lease-renewal agreement with Reignwood International Investment (Group) Company Limited, a wholly owned subsidiary of the controlling shareholder Reignwood International Holdings. The new term covers two years and 364 days, running from 16 July 2026 to 14 July 2029, and keeps the group’s principal place of business at a 1,269-square-foot unit on Level 96 of the International Commerce Centre, Kowloon.

Key commercial terms • Monthly base rent: HK$81,201.92, payable in advance. • Monthly air-conditioning and property-management charges: approximately HK$14,337.21, subject to building-management adjustments. • Rates and utilities: apportioned to floor area and borne by the lessee. • Security deposit: HK$294,204.69 (equivalent to about 3.6 months’ rent).

Accounting impact In compliance with HKFRS 16, Ares Asia will recognise a right-of-use asset and corresponding lease liability at the lease commencement date. The unaudited right-of-use asset is estimated at approximately HK$3.27 million, reflecting the present value of non-cancellable lease payments over the new term.

Strategic rationale Management cites three operational priorities for the renewal: 1) maintaining business stability; 2) avoiding disruption associated with relocation; and 3) containing unnecessary relocation costs. The monthly rent was determined through arm’s-length discussions and benchmarked against recent market transactions in the same building.

Regulatory classification • Discloseable transaction: the highest applicable percentage ratio, based on the right-of-use asset value, exceeds 5% but is below 25%, triggering reporting and announcement obligations under Chapter 14 of the Hong Kong Listing Rules. • Connected transaction: the lessor is an associate of controlling shareholder Dr. Chanchai Ruayrungruang. As the consideration is below HK$10 million, the deal is exempt from independent shareholders’ approval but remains subject to disclosure under Chapter 14A. Non-executive director Ms. Ruayrungruang Woraphanit, daughter of Dr. Ruayrungruang and an executive within Reignwood Group, abstained from the board vote on the lease renewal.

Corporate background Ares Asia focuses on trading coal and other commodities, sourcing primarily from Indonesia and the Philippines for customers in Mainland China and Vietnam. The Reignwood Group, the landlord’s parent, is a diversified conglomerate with interests spanning energy drinks, leisure properties and commercial real estate in the PRC.

The board considers the lease-renewal terms fair, reasonable and in the interests of shareholders as a whole.