China Wacan Group Company Limited (1920) disclosed the signing of a three-year Lease Agreement for a new principal place of business in Hong Kong. The agreement was entered into with Hongville Limited on May 19, 2025 (after trading hours), specifying a monthly rental fee of HK$332,541 for premises with a gross floor area of approximately 3,359 square feet. The term commenced on April 16, 2025.

According to the announcement, the right-of-use assets related to this new lease are valued at approximately HK$9,432,000, determined based on present value of total lease payments under Hong Kong Financial Reporting Standards. A deposit of HK$1,504,832 (calculated as four months’ rent and service charges) was placed as security for payment and performance obligations. The Company reports that this move, which expands office space significantly, aims to accommodate increasing manpower for future business development.

The transaction is classified as a discloseable transaction based on the corresponding percentage ratios under the Listing Rules, leading to notification and announcement requirements without the need for shareholder approval. The announcement explains its delayed publication stemmed from a misunderstanding of how the Listing Rules apply to office leases. To ensure compliance going forward, the Company has outlined specific remedial measures, including enhanced internal approval procedures, staff training, and early legal consultation for future transactions.