AEON STORES (00984) plans to lease properties in Hong Kong to open new stores.

AEON STORES (00984) announced that on September 2, 2026, the company (as the tenant) signed a lease agreement for the premises, with a lease term of five years, commencing from February 2, 2027, and expiring on February 1, 2032 (inclusive of the first and last days), for operating retail business at the premises. In addition, the company, as a franchise holder, signed a licensing agreement for commercial use of the premises, valid for five months, from September 2, 2026, to February 1, 2027 (inclusive of the first and last days); this period is prior to the commencement of the lease agreement. According to the lease agreement, the total basic rent payable during the lease term is approximately HKD 9.02 million. The premises are located at Shop 101, 1st Floor, 101 Kings Road, Hong Kong. The Group's main business is to operate retail business in Hong Kong and China through a chain of stores named AEON STYLE, AEON, and AEON SUPERMARKET. Due to the nature of its retail business, the Group must periodically enter into lease agreements to rent retail stores. Each retail store, especially large stores similar to the premises, contributes to and maintains the scale of the Group's operations, thereby helping the Group reduce overall operating costs, enhance negotiation capabilities with its business partners, and expand its store network and market share. Through signing new lease and licensing agreements for the premises, the Group secures suitable retail space in strategic locations forits business under the name Mono Mono. The terms of the lease agreement (including rent and management fees) were determined through fair negotiation, referencing the open market rents of comparable properties, as well as the rents and management fees paid by other retail stores operated by the Group. The signing of the lease and licensing agreements is intended for the Group's retail business operations in its daily and general business activities. Therefore, the board of directors believes that the terms of the lease and licensing agreements have been executed under normal commercial terms, are fair and reasonable, and that entering into the lease and licensing agreements and the transactions contemplated therein are in the overall interests of the company and its shareholders.