The Board announced that Top Glorification, an indirect wholly-owned subsidiary of the Company, entered into the Lease Agreement as tenant with Hang Lung as the landlord in respect of the Premises on 20 November 2020, for a term of three years commencing on 1 November 2020 and expiring on 31 October 2023 (both days inclusive) for the operation of its restaurant "Duddell's". Pursuant to HKFRS 16, the entering into of the Agreement will require the Group to recognise the fixed portion of the lease payment for the Premises as the right-of-use assets with a cost of approximately HKD 19.0 million at initial recognition and a corresponding lease liability which represented the present value of the future lease payments. Thus, the entering into the Lease Agreement and the transactions contemplated thereunder will be regarded as deemed acquisition of asset by the Group. REASONS FOR AND BENEFITS OF ENTERING INTO THE LEASE AGREEMENT: The Group is principally engaged in operating restaurants and providing membership services for the Group's restaurants in Hong Kong. The Premises have been leased to Top Glorification since May 2013 to operate the Group 's restaurant "Duddell's". The existing lease agreement for the Premises will expire on 31 October 2020. The Lease Agreement allows "Duddell's" to operate in the same location at Premises after the expiry of the existing lease agreement on 31 October 2020, which will facilitate the long-term success of the restaurant. Based on the above, the Directors are of the view that the terms and conditions of the Lease Agreement are fair and reasonable and in the interests of the Company and its shareholders as a whole.