The boards of directors of Emperor International and Emperor W&J announce that on 27 February 2018, Gold Pleasure as licensor entered into the Licence Agreement with Beauty Royal as licensee in relation to the licensing of the Signage. Licensor: Gold Pleasure. Licensee: Beauty Royal. Signage: Projected signage of 4-8 Canton Road, Tsim Sha Tsui, Kowloon, Hong Kong with approximate area of 24.72 sq. m. Term: six months (March, May, August, October, November and December of 2018) Licence fee: March HKD 132,000. May HKD 99,000. August HKD 99,000. October HKD 132,000. November HKD 110,000. December HKD 132,000. Inclusive of rates, but exclusive of electricity charges and other outgoings Deposit: HKD 396,000. REASONS AND BENEFITS FOR THE LICENCE AGREEMENT: Emperor International is an investment holding company and its subsidiaries are principally engaged in property investments, property development and hospitality in Greater China and overseas. Gold Pleasure is principally engaged in property investment. The Signage is owned by Gold Pleasure to generate licence fee income. Gold Pleasure is also the owner of Property A of which the Signage is adhered therewith. Emperor W&J is an investment holding company and its subsidiaries are principally engaged in the sales of European-made internationally renowned watches and self-designed fine jewellery products in Hong Kong, Macau, the PRC and Singapore. Beauty Royal is principally engaged in the provision of group tenancy agent services for Emperor W&J and its subsidiaries. The Signage which is located above Property A as retail shops for Emperor W&J will be used for advertising purpose. The terms of the Licence Agreement are arrived at after arm's length negotiation and the licence fee was determined with reference to the prevailing market licence fee of similar properties in the nearby locations. The directors of both Emperor International and Emperor W&J (including their respective independent non-executive directors) considered that the terms of the Licence Agreement are fair and reasonable and the transaction is on normal commercial terms, in the ordinary and usual course of business and in the interests of both Emperor International and Emperor W&J and their respective shareholders as a whole.