AEON STORES (00984) plans to lease Hong Kong properties to open a new store

According to the Zhitong Finance App, AEON (00984) announced that on September 2, 2026, the company (as the tenant) signed a lease agreement to lease the premises. The lease period is five years, starting February 2, 2027 and ending on February 1, 2032 (including the first and last two days) to operate the retail business. Furthermore, the Company, as the licensee, signed a license agreement for the commercial use of the premises for a period of five months, starting September 2, 2026 and ending on February 1, 2027 (including the first and last two days). This period is the period before the commencement of the lease agreement.

According to the lease agreement, the total basic rent payable during the rental period is approximately HK$9.02 million. The property is Shop 101, 1st floor, 101 King's Road, Hong Kong.

The Group's main business is operating retail business in Hong Kong and China through chain stores named after the store names “AEON STYLE”, “AEON” and “AEON SUPERMARKET”. Due to the nature of its retail business, the Group is required to enter into leasing agreements from time to time to rent retail stores. Every retail store, especially large stores similar to this one, helps and maintains the Group's operating scale, thereby helping the Group reduce overall operating costs, strengthen the Group's ability to discuss with its business partners, and expand the store network and market share. By entering into a lease agreement and license agreement for the new premises, the Group was able to obtain suitable retail space at a strategic location to operate its business under the trade name “Mono Mono”.

The terms of the tenancy agreement (including rent and management fees) are determined through fair negotiations after reference to the open market rents of comparable properties and the rent and management fees paid by other retail stores operated by the Group. Lease agreements and license agreements are entered into for the purpose of operating retail business in the Group's daily and general business processes. Therefore, the board of directors believes that the terms of the lease agreement and license agreement are made in accordance with normal commercial terms, which are fair and reasonable, and that the conclusion of the lease agreement and license agreement and the transactions to be carried out thereunder conform to the overall interests of the Company and shareholders.