Hong Kong-listed Parkson Group (03368) has secured the long-term occupancy of its Nanchang flagship store after its indirect wholly owned subsidiary, Jiangxi Parkson Retail Co., Ltd., signed a renewal agreement on 9 September 2026 with landlord Jiangxi Kaimei Development Co., Ltd.

Key terms of the Nanchang Renewal Agreement • Lease term: 1 January 2027 – 31 December 2041 (15 years extension). • Property: Basement and levels 1–4 at No. 177 Zhongshan Road, Nanchang, totaling 31,955.45 sq m. • Annual rent (VAT inclusive): – Years 1–3: RMB 21.95 million – Years 4–6: RMB 22.72 million – Years 7–9: RMB 23.51 million – Years 10–12: RMB 24.34 million – Years 13–15: RMB 25.19 million • Payment terms: Quarterly rent in advance. • Deposit: RMB 15.00 million (RMB 3.30 million already lodged; remaining RMB 11.70 million due within 60 days after the agreement takes effect). • Use: Continued operation of a multi-format retail centre with rights to self-operate, joint-venture or sub-let. • Early termination right: Tenant may exit without penalty if cumulative losses exceed RMB 50 million, subject to 90-day notice and independent audit confirmation.

IFRS 16 and Listing Rules Implications Under IFRS 16, the extended lease is recognised as a right-of-use asset valued at approximately RMB 185.00 million, representing the present value of future lease payments. The size of this asset triggers a “major transaction” classification (highest applicable percentage ratio exceeding 25% but below 100%) under Chapter 14 of the Hong Kong Listing Rules.

Shareholder Approval A closely allied shareholder group—East Crest International Limited and its wholly owned subsidiary PRG Corporation Limited—holding 1.45 billion shares (54.97% of issued share capital) has provided written consent. In accordance with Rule 14.44, this written approval replaces the need for a general meeting.

Strategic Rationale Parkson has operated in Nanchang for nearly two decades, leveraging the city’s status as a key commercial hub in southern China. The centrally located property complements another Parkson store across the street, enhancing network synergies. Management plans to upgrade the site into an integrated lifestyle destination to capture growing consumer traffic from an adjacent dual-metro station.

Next Steps The renewal agreement becomes effective upon formal shareholder approval, and the company will dispatch an informational circular by 25 September 2026 as required under the Listing Rules.