Core Viewpoint - AEON (Hong Kong) Department Store Limited has signed a new 8-year lease agreement for its Tianhe City store, which will undergo renovations starting July and is expected to reopen in October [2][3][8]. Group 1: Lease Agreement Details - The new lease period is from July 1, 2025, to June 30, 2033, with a total rent of approximately 102 million RMB, averaging 12.7 million RMB per year [3][6]. - The leased area has been reduced, now covering B113 and B114 on the first basement level, along with storage on the second and third basement levels, rather than the entire first basement [2][9]. - The previous lease saw annual rent increase from 37.2 million RMB in 2010 to 52 million RMB in 2023, with an average annual increase of about 5% [6][7]. Group 2: Renovation Plans - The Tianhe City store will undergo a three-month upgrade focusing on "scene reconstruction, product renewal, and service enhancement," targeting the needs of young middle-class families [8][9]. - The renovation aims to create a "five-sense experience marketplace" and is part of a broader upgrade plan for the Tianhe City shopping center [8][9]. Group 3: Market Context and Future Plans - AEON plans to open 8 new stores in Guangdong this year, increasing its total to 41 stores by year-end, compared to 33 stores in 2019 [10]. - Despite expansion plans, AEON's overall performance in Guangdong has been under pressure, with declining revenue and ongoing operational losses since 2017 [11].