Scorching Dragon Holdings Ltd. (Scorching Dragon, formerly Dragon King Group) announced that its indirect wholly owned unit, TF F & B Ltd., signed a Letter of Offer with AEON Stores (Hong Kong) Co., Ltd. on 26 March 2026 to licence Shop L004 on the ground floor of AEON’s Lai Chi Kok Store for a new Cantonese restaurant branded “Tong Arch”.

The lease runs from 1 April 2026 to 31 March 2028, covering approximately 7,410 sq ft. Key terms include: • Basic licence fee: HKD 0.10 million per month, with a 45-day rent-free period from 1 April to 15 May 2026. • Turnover fee: 9 % on monthly gross receipts exceeding HKD 1.50 million. • Management fee: HKD 0.03 million per month. • Promotional levy: HKD 0.01 million per month. • Rates: 5 % of quarterly licence fees. • Deposit: HKD 0.60 million (equivalent to four months of basic licence, management and promotional charges plus rates).

Under HKFRS 16, the arrangement will be recognised as a right-of-use asset of about HKD 2.20 million on Scorching Dragon’s balance sheet.

Management highlighted that the site, located within a mature middle-class residential catchment, allows seating for up to 200 patrons and requires only minor refurbishment, facilitating a swift and cost-efficient opening targeted for May 2026. The move follows the Group’s January 2026 launch of its Mongkok (Dragon King) Seafood Restaurant and supports ongoing efforts to rebuild and diversify its restaurant portfolio after the October 2025 operational disruption.

The transaction qualifies as a “discloseable transaction” under GEM Listing Rule 19.06, triggering announcement requirements but not shareholder approval. Trading in Scorching Dragon shares (Stock Code: 08493) has been suspended since 20 October 2025 and will remain so pending further notice.