Core Points - AEON (Hong Kong) Department Store Limited announced a new 8-year lease agreement for its Tianhe City store, effective from July 1, 2025, to June 30, 2033 [2][3] - The Tianhe City store will undergo renovations starting in July, with a planned reopening in October [2][6] - The leased area has been reduced compared to previous agreements, now covering specific shop numbers B113 and B114, along with storage areas [2][6] Lease and Financial Details - The total rent for the new lease is approximately 102 million yuan, with annual management fees of about 3.02 million yuan, utility costs of 2.71 million yuan, and other expenses of 2.33 million yuan [3][4] - The average annual rent for the new lease is significantly lower at around 12.7 million yuan, compared to the previous annual rent which increased from 37.2 million yuan to 52 million yuan over the last lease period [4] Market Context - AEON has been operating in the Chinese market since 1996, with the Tianhe City store being its first comprehensive department store in mainland China [3] - Despite plans to open 8 new stores in Guangdong this year, AEON's overall performance in the region has been under pressure, with declining revenues in its department and food supermarket segments [7]