The Board announces that Meric Investment as tenant, has signed and returned the Offer Letter to MTR Corporation Limited (an Independent Third Party) as landlord, on 21 February 2024 for renewal of the lease in respect of the Premises for a term of three years commencing from 6 March 2024 to 5 March 2027 (both days inclusive), with an option to renew for a further term of two years commencing from 6 March 2027 to 5 March 2029 (both days inclusive). Premises: Unit G03A, G/F., Maritime Square, 33 Tsing King Road, Tsing Yi, Hong Kong Term: 6 March 2024 to 5 March 2027 (both days inclusive), with an option to renew for a further term of two years commencing from 6 March 2027 to 5 March 2029 (both days inclusive) Total amount payable: The aggregate amount payable under the Lease is approximately HKD 12.8 million (inclusive of management expenses, air-conditioning charge and promotion fees) subject to additional turnover rent representing the amount by which 13% of the monthly gross sales turnover exceeds the monthly basic rent of each calendar month 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 MTR and Meric Investment after taking into consideration the prevailing market price of comparable premises in the vicinity of the Premises.

The Group is principally engaged in the provision of catering services in Hong Kong. The Group leased the Premises for the operation of its Restaurant under the Current Lease and the lease term of which will expire on 5 March 2024. In evaluating the renewal of the Lease, the Directors considered that (i) the Restaurant has been operated in the Premises for over thirteen years; (ii) the monthly rental per square feet of gross floor area of the Premises is fair and reasonable; and (iii) the entering into of the Offer Letter as acceptance to lease the Premises will enable the Group to continue its operation of the Restaurant at the Premises.

The Directors, including the independent non-executive Directors, considered that the transactions contemplated under the Lease was entered into in the ordinary and usual course of business of the Group, and the Lease was entered into on normal commercial terms after arm's length negotiations between the parties, and the terms of the transactions contemplated under the Lease are fair and reasonable and in the interests of the Company and the Shareholders as a whole.