On 31 March 2023, the Subsidiary (as tenant) and AGL (as landlord) entered into the Sub-tenancy Agreement in respect of the lease of a portion of the Property for a term of two years from 1 April 2023 to 31 March 2025 (both days inclusive) at a monthly rental of HKD 151,100. The rental payments to be made by the Group under the Sub-tenancy Agreement are capital in nature, and will be regarded as acquisition of assets of the Group. Pursuant to HKFRS 16, a property leased under the Sub-tenancy Agreement will be recognised as right-of-use assets, in which the value for recognising the portion of the Property as right-of-use assets pursuant to the Sub-tenancy Agreement would be approximately HKD 3,418,000. The portion of 9th and 23rd Floors of the Property sublet pursuant to the Sub-tenancy Agreement forms part of the tenancy arrangement between the Head Landlord and AGL in
respect of the whole of 9th and 23rd Floors of the Property as contemplated under the Head Tenancy Agreement. The monthly rental of the Sub-tenancy Agreement was arrived at after arm's length negotiation between AGL and the Subsidiary with reference to the prevailing market conditions, the rental levels of similar properties in the vicinity of the Property and the historical transaction amount under the existing sub-tenancy agreement between AGL and the Subsidiary.