On June 13th, Gelunhui reported that Sinomax Group (01418.HK), through its indirect wholly-owned subsidiary Sinomax Vietnam (as tenant), signed a factory and office lease agreement with Ha An Phuc (as landlord) on June 13th, 2024. Accordingly, Ha An Phuc has agreed to rent the property to Sinomax Vietnam for a period of five years from June 28th, 2024 to June 27th, 2029. The total monthly rent for the property (excluding value-added tax, management fees and public utility fees) is approximately $38,628.26 in the first year of the lease period (equivalent to approximately HK$301,300.42), approximately $40,562.44 in the second year (equivalent to approximately HK$316,387.03), approximately $42,618.92 in the third year (equivalent to approximately HK$332,427.58), approximately $44,803.24 in the fourth year (equivalent to approximately HK$349,465.27), and approximately $46,998.64 in the fifth year (equivalent to approximately HK$366,589.39).

Since 2019, the group has been leasing the property from Ha An Phuc for its production facilities of consumer health and household products in Vietnam. Since 2019, the group has invested resources in the construction of a factory and supporting facilities on site to meet its operational needs. The production facilities have been approved by multiple customers of the group and can manufacture its products in Vietnam. The lease agreement for the related factory and office between Sinomax Vietnam and Ha An Phuc will expire on June 27th, 2024. To ensure the smooth operation of the group's business in Vietnam, the board of directors believes that the group has a continued operational need to lease the property.