Partkson Retail Group has provided update to the tenancy agreement the group has secured between Guizhou Shenqi Parkson Retail Development Co., Ltd. an indirect 60% owned subsidiary of Parkson Retail Group Limited, Guizhou Longgang Commercial Operation Management Co., Ltd., an indirect wholly-owned subsidiary of Guizhou Shenqi Enterprise Co., Ltd., and Guizhou Yuncui Property Management Co., Ltd. in respect of the sub-lease of Basement Level 1, and Level 1 to Level 4 in Longgang International Center, 117 Zhonghua Middle Road, Guiyang City, Guizhou Province, the PRC for a term of up to 15 years and 7 months.
The tenancy agreement as a sub-tenant will require the PRGL Group to recognise the Property as a right-of-use asset, the amount of which is approximately Rmb57.1 million (equivalent to approximately RM37.1 million). Thus, the entering into of the Tenancy 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 Hong Kong Exchnge where PRGL is listed.
The group noted the total assets, profits and revenue of the sub-tenant compared with that of the PRGL Group was less than 5% of the applicable percentage ratios for the financial year ended 31 December 2023, hence the Sub-Tenant is an insignificant subsidiary of PRGL.
Parkson said the acquisition of asset does not have a material impact on the earnings of the PHB Group for the financial year ending 31 December 2024 and the net assets of the group based on the audited consolidated statement of financial position of the company as at 31 December 2022.
