ROYALE HOME Enters into Lease Agreement for Production Facility in Qingyuan

Stock News
05/06

ROYALE HOME has announced that on May 6, 2026, Qingyuan Yuyuan, an indirect wholly-owned subsidiary of the company acting as the lessee, entered into a lease agreement with Hengcheng, an indirect subsidiary of the company's controlling shareholder Science City Group acting as the lessor. Under the terms and conditions of the agreement, Hengcheng has agreed to lease the property to Qingyuan Yuyuan for a period of three years, from January 1, 2026, to December 31, 2028, inclusive. The property is identified as Production Plant No. 4 located at 20 Yingde Royal Avenue, Qingyuan City, Guangdong Province, China, with a total floor area of 17,363 square meters. This facility was previously the main production site for the group's furniture manufacturing operations. Following the completion of the disposal of Hengcheng, the group negotiated the lease arrangement with Science City Group to ensure uninterrupted production operations despite the change in equity. The execution of the lease agreement provides a legal foundation for the group to continue utilizing substantially the same production facilities for furniture manufacturing and sales, avoiding relocation costs and minimizing risks associated with production disruption, thereby supporting the stability of the group's daily operations.

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