We attach herewith the announcement made to The Stock Exchange of Hong Kong Limited ("The HKEx") on 6 November 2025 by Parkson Retail Group Limited ("PRGL"), a 54.97% owned subsidiary of Parkson Holdings Berhad ("PHB" or the "Company") listed on The HKEx, in relation to the major transaction on (i) the renewal of tenancy in Chengdu City, Sichuan Province, the People's Republic of China ("PRC"); and (ii) the supplemental agreement to the Chengdu Renewal Agreement (as defined hereinafter).
On 6 November 2025, PRGL had announced that Sichuan Shishang Parkson Retail Development Co., Ltd., an indirect wholly-owned subsidiary of PRGL, had on even date entered into the following agreements:
​(i) a renewal agreement with Sichuan Tairan Real Estate Group Co., Ltd. ("Sichuan Tairan"), Sichuan Kedi Real Estate Co., Ltd. and Chengdu No. 1 Commerce Co., Ltd. in respect of the renewal of the tenancy of the basement, level 1 to level 5 of the Times Square Complex located at No. 2 Zongfu Road, Jinjiang District, Chengdu City, Sichuan Province, the PRC ("Chengdu Property") excluding the Specific Unit (as defined hereinafter) ("Chengdu Renewal Agreement"); and
(ii) a supplemental agreement to the Chengdu Renewal Agreement with Sichuan Tairan to supplement the terms of the Chengdu Renewal Agreement in respect of the renewal of the tenancy of the unit located at a prominent location on level 1 of the Chengdu Property ("Specific Unit") ("Supplemental Agreement").
The tenancies for the Chengdu Property, are each renewed for a term of 20 years from 1 October 2027 to 30 September 2047 pursuant to the Chengdu Renewal Agreement and the Supplemental Agreement.
Pursuant to the International Financial Reporting Standard 16 - Leases ("IFRS 16") issued by the International Accounting Standards Board, the PRGL Group is required to recognise the Chengdu Property as a right-of-use asset. Thus, the entering into of the Chengdu Renewal Agreement and the Supplemental Agreement, and the transactions contemplated thereunder will be regarded as an acquisition of asset by the PRGL Group under the Rules Governing the Listing of Securities on The HKEx ("Listing Rules") ("Acquisition of Asset"). The consideration for the Acquisition of Asset recognised by the PRGL Group pursuant to IFRS 16 is approximately Rmb251.8 million (equivalent to approximately RM148.6 million), which is calculated based on the present value of the aggregated rent payments to be made under the Chengdu Renewal Agreement and the Supplemental Agreement in accordance with IFRS 16.
For the purpose of this announcement, an exchange rate of Rmb1.00: RM0.59 is assumed.
As the highest applicable percentage ratio under Rule 14.07 of the Listing Rules in respect of the consideration for the Acquisition of Asset recognised by the PRGL Group pursuant to IFRS 16 is more than 25% but less than 100%, the entering into of the Chengdu Renewal Agreement and the Supplemental Agreement, in aggregation, constitutes a major transaction for PRGL, and is therefore subject to announcement, circular and shareholders’ approval requirements under Chapter 14 of the Listing Rules. In this regard, the written approval of a closely allied group of shareholders interested in an aggregate of 1,448,270,000 ordinary shares of HK$0.02 each, representing approximately 54.97% of the total number of issued shares of PRGL, on the entering into of the Chengdu Renewal Agreement and the Supplemental Agreement, and the transactions contemplated thereunder has been accepted in lieu of holding a general meeting of PRGL pursuant to Rule 14.44 of the Listing Rules.
The Acquisition of Asset does not have a material impact on the earnings of the PHB Group for the financial year ending 31 December 2025 and the net assets of the PHB Group based on the audited consolidated statement of financial position of the Company as at 31 December 2024.