Parkson Retail Group Limited has entered into a Shanghai Renewal Agreement with Shanghai Changning Real Estate, extending the lease of its Hongqiao flagship store in Changning District from 1 July 2026 to 31 December 2036.

• Scope and scale: The tenancy covers 49,480.35 sq.m. across two interconnected buildings at 789 and 889 Tianshan Road, spanning levels LG1/L1 to L6.

• Rental terms: Fixed monthly rent is set at RMB5.19 million (tax-inclusive) from July 2026 to September 2031, rising 3 % to RMB5.34 million from October 2031 to December 2036. The landlord will grant a total of 10 rent-free months over the term plus two three-month renovation rent-free periods (July–September 2027 and October–December 2032).

• Financial impact: Under IFRS 16 the Group will recognise a right-of-use asset and corresponding lease liability of approximately RMB374.50 million at commencement. Annual depreciation is estimated at RMB35.40 million.

• Cash commitments: A security deposit of RMB15.58 million has been arranged (RMB8.10 million carried forward, RMB7.48 million already paid). All rental and related costs will be funded from internal resources.

• Landlord upgrades: Shanghai Changning Real Estate will fund up to RMB16.56 million for equipment upgrades, including lifts, HVAC, power supply, plumbing and fire-protection systems.

• Sub-lease structure: About 46,191 sq.m. will continue to be sub-let to joint-venture operator Parkson Newcore at a pass-through rent equal to the unit rent in the renewal.

• Strategic rationale: Management cites the store’s prime location, established customer base and long-term cost visibility as drivers for extending the lease, viewing the asset as key to the Group’s Shanghai retail strategy.

• Transaction classification: The present-value lease consideration exceeds 100 % of the Group’s size tests, making the renewal a “very substantial acquisition” under Chapter 14 of the Listing Rules.

• Shareholder approval: An extraordinary general meeting will be held electronically on 30 June 2026 to seek approval for the renewal. Completion is conditional on shareholder consent.