• On 29 May 2026, Parkson Retail Group’s wholly owned subsidiary, Kunming Yun Shun He Retail Development Co., Ltd., executed a “Second Business Entrusted Management Agreement” with Brilliant Group Co., Ltd. for the atrium of Bolian Plaza in Kunming, Yunnan Province.
• Term & Scope: The agreement extends the existing entrustment for the Property Atrium from 1 October 2026 to 15 January 2038 (or earlier if the underlying lease ends). It covers business management, operations, planning and marketing for the designated areas within the mall.
• Financial Terms: – Management fee set at RMB1.25 million per quarter, payable through deductions from a recoupment amount of RMB5.83 million owed by the landlord at the expiry of the first agreement. – If the contract is revoked or cancelled, the landlord must refund any remaining pre-paid fees within 30 days and pay liquidated damages of RMB15.00 million plus any additional direct and indirect losses.
• Accounting Impact: Under IFRS 16, Parkson will recognise a right-of-use asset of approximately RMB33.50 million, classifying the transaction as an asset acquisition. The size test ratios under Hong Kong Listing Rule 14.07 fall between 5% and 25%, making this a discloseable transaction requiring public announcement but not shareholder approval.
• Strategic Rationale: Parkson has operated at Bolian Plaza since 2007. Extending control of the atrium is expected to maintain customer traffic, support promotional activities and reinforce the long-term stability of the group’s Kunming retail operations.
• Counterparty Profile: Landlord Brilliant Group is majority-owned (78.83%) by Pakluen International Limited, ultimately controlled by Liu Xiangyun. The landlord and its ultimate beneficial owner are independent of Parkson and its connected persons.
• Funding: All payments under the agreement will be met from Parkson’s internal resources.
The board believes the contract terms are market-aligned and in the interests of shareholders, ensuring continued operational presence at a key location while adding a sizeable right-of-use asset to the balance sheet.