Jimu Group Limited has entered into a 35-month tenancy agreement for a new retail store in Kowloon, Hong Kong.

Key terms • Tenant: Art Kingdom Limited, an indirect wholly-owned subsidiary of Jimu Group • Landlord: Fully King Trading Limited (independent third party) • Premises: Shop 1D (store room) on the ground floor and whole first floor of Cheong Fu Mansion, 2–6 Fife Street, Kowloon • Lease period: 1 August 2026–30 June 2029 • Monthly rent: HK$55,000, payable on the first day of each month • Aggregate rent: HK$1.76 million, with a rent-free period from 1 August 2026 to 31 October 2026 • Funding: internal resources

Accounting impact In accordance with HKFRS 16, the group will recognise right-of-use assets of approximately HK$1.48 million, calculated as the present value of aggregate lease payments discounted at 12.13%.

Regulatory classification The lease exceeds the 5% but falls below the 25% threshold of the applicable percentage ratios under the GEM Listing Rules, making it a discloseable transaction subject to reporting and announcement requirements under Chapter 19.

Strategic rationale Management states that leasing sizeable retail space is integral to maintaining scale and expanding market share in its core footwear, apparel and sports-related peripheral products businesses. The rental terms were reached at arm’s length with reference to prevailing market rates.