The Board to announce that on 1 February 2023, the AEON STORES (HONG KONG) CO., LIMITED and AEON Credit Service (Asia) Company Limited entered into the Renewal Agreement to renew the Master Agreement for a further term of three years effective from 15 April 20 23 to 14 April 2026. The Renewal Agreement may be terminated prior to the expiry of such fixed term by either party thereto giving not less than 90 days' prior written notice of its intention to do so to the other party. Subject to compliance with the Listing Rules, the Renewal Agreement may be renewed on such terms and conditions as the parties to the Renewal Agreement may mutually agree.

COMMISSION PAYMENT TRANSACTIONS: Nature of Transactions: Under the Renewal Agreement, the Company shall pay to AEON Credit commissions in return for AEON Credit providing customers of the Company with the following facilities and solutions: credit purchase facilities made available to customers of the Company for making purchases at the Company's stores using AEON JUSCO Master card (now known as AEON Mastercard Credit Card), AEON JUSCO VISA Card (now known as AEON Visa Credit Card), AEON JUSCO JCB Card (now known as AEON JCB Credit Card), AEON JUSCO UnionPay Credit Card (now known as AEON UnionPay Credit Card) and any other co-branded credit cards as the parties may from time to time agree; card instalment plan made available to customers of the Company for making purchases of goods and/or services at the Company's stores; other payment solutions made and to be made available to customers of the Company for making purchases from time to time, including the usage of any kind of credit, debit, pre-paid and/or stored value cards or other medium or facilities owned and/or operated by AEON Credit; and other related services provided to the Company or its customers which are derived from or ancillary to the transactions Described above or arising out of the cards or other medium or facilities from time to time. Pricing: The commissions in respect of the Commission Payment Transactions payable by the Company to AEON Credit are calculated on the basis of fixed percentages of the sales generated by the credit purchase facilities or the payment solutions provided by AEON Credit (‘Sales Amount'), depending on the type of service provided and are subject to revisions from time to time after arm's length negotiations between the parties. The currently agreed commissions payable by the Company range from 0.42% to 3.20% of the relevant Sales Amount.

The payment terms for the Commission Payment Transactions, unless otherwise agreed by the parties, are 10 days. These commission rates (as may be revised from time to time) are and will be determined between the Company and AEON Credit after arm's length negotiations. In negotiating and agreeing the commission rates and other terms of the Commission Payment Transactions with AEON Credit, the Company takes into account the prevailing market commission rates for similar types of transactions that are provided and/or made available by two or more independent third parties to the Company and gives credit to AEON Credit for any ancillary services provided and to be provided to the customers of the Company by AEON Credit.

Further, the Company has compared the fees charged by other independent third parties in the market for similar services to ensure that the price and terms offered by AEON Credit are better than those offered by such third parties. For any other credit facilities that may be provided by AEON Credit to the Company's customers or any other related services that may be provided by AEON Credit to the Company from time to time, the Company will negotiate and agree on the commission rates, fees and/or charges (as the case may be) and other terms of such credit facilities or related services with AEON Credit on the basis as mentioned above. The Company will also compare the fees charged by other independent third parties in the market for similar services to ensure that the price and terms offered by AEON Credit are better than those offered by such third parties.