The board of directors of MS Concept Limited announced that the Offer Letter dated 5 February 2021 (received by the Group on 8 March 2021) was entered into between Lord Restaurant HP (a wholly-owned subsidiary of the Group) as tenant and Best Profit (an Independent Third Party) as landlord in respect of the Lease of the Premises for a term of four years commencing from 1 April 2021 to 31 March 2025 (both days inclusive). Pursuant to HKFRS 16 Leases, the Company if entering into lease transaction as lessee will recognise a right-of-use asset in its consolidated financial statements. Such transaction will be regarded as acquisition of capital asset for the purpose of the GEM Listing Rules. The aggregate amount payable under the Lease is approximately HKD 12.7 million (inclusive of promotion levy, management charges, government rent and rates) subject to additional turnover rent representing the amount by which 12% and 13% of the monthly gross sales turnover exceeds the monthly basic rent of each calendar month for each of the two years ending 31 March 2023 and 2025, respectively, and in accordance with the Lease, which will be satisfied by internal resources of the Group. The rent is determined after arm's length negotiations between Best Profit and Lord Restaurant HP after taking into consideration the prevailing market price of comparable premises in the vicinity of the Premises.