Parkson Holdings Bhd, through its 54.97%-owned subsidiary Parkson Retail Group Ltd (PRGL), has renewed the lease for its retail premises in Nanchang, China, under an agreement valued at approximately 185 million yuan (RM111 million).
Parkson Holdings Bhd’s 54.97 per cent-owned subsidiary, Parkson Retail Group Ltd (PRGL), has renewed the lease for its retail premises in Nanchang, China for 185 million yuan (RM111 million).
The lease renewal forms part of the group’s ongoing retail operations in China, providing long-term access to the premises for another 15 years.
In a filing, Parkson Holdings said PRGL, which is listed on the Hong Kong Stock Exchange, entered into the renewal agreement through its indirect wholly-owned subsidiary, Jiangxi Parkson Retail Co Ltd.
The agreement was signed with Jiangxi Kaimei Development Co Ltd on 9 September 2026 and covers a 15-year lease period commencing on 1 January 2027 and ending on 31 December 2041.
The leased property comprises a basement-level floor and four additional floors, spanning Levels One to Four of the retail premises in Nanchang.
The renewal will enable Parkson to continue occupying the premises over the agreed period, supporting the continuity of its retail operations at the location.
Under International Financial Reporting Standard 16 (IFRS 16), which governs lease accounting, the transaction will be recognised as a right-of-use asset in PRGL’s financial statements.
A right-of-use asset represents a company’s contractual right to use a leased property for a specified period, rather than outright ownership of the premises.
As a result, the lease renewal will be reflected in the group’s financial reporting in accordance with the applicable accounting requirements.
Parkson Holdings stated that the recognition of the right-of-use asset is not expected to have a material impact on the group’s earnings for the financial year ending 31 December 2026.
The company also indicated that the transaction is not expected to materially affect its net assets, based on its audited consolidated statement of financial position as at 31 December 2025.
The agreement provides PRGL with a long-term leasing arrangement for its Nanchang retail premises, allowing the group to maintain its presence at the location without acquiring ownership of the property.
The 15-year commitment also provides greater certainty over the availability of the premises, an important consideration for retail businesses operating from established commercial locations.
With the lease extending until the end of 2041, Parkson will retain the contractual right to occupy the specified retail space throughout the agreed period, subject to the terms of the renewal agreement.
The transaction represents a continuation of Parkson’s existing retail presence in Nanchang, while maintaining its financial reporting obligations under international accounting standards.
