Aeon Stores (00984.HK) announced that its wholly-owned subsidiary Aeon South China issued a notice to the landlord yesterday (October 31) regarding the termination of the remaining lease term in advance, effective from April 30 next year. The company estimated the value of the right-of-use assets to be around 8.6 million RMB based on the notice.

The premises for the early termination of the lease are located on the first and second floors of the Grand Center Building, No. 1004 Chuangye 1st Road, Bao'an District, Shenzhen. According to the lease agreement, Aeon South China has been operating a retail store at the location since April 1, 2012. During the six-month period ending on June 30 of this year, Aeon South China incurred continuous losses at this store. The board of directors believes that terminating the lease agreement early as per the notice will help Aeon South China alleviate its financial burden in the long run.