ROYALE HOME (01198) entered into a leasing agreement for a production facility in Qingyuan City.

ROYALE HOME (01198) announced that on May 6, 2026, Qingyuan Yuyuan (an indirect wholly-owned subsidiary of the Company) (as the tenant) entered into a lease agreement with Heng Cheng (an indirect subsidiary of Science City Group, the controlling shareholder of the Company) (as the landlord). Under the terms and conditions of the lease agreement, Heng Cheng agreed to lease the property to Qingyuan Yuyuan from January 1, 2026, to December 31, 2028, for a period of 3 years, including the first and last days. It is reported that the property is located at No. 20, Emperor Avenue, Yingde, Qingyuan City, Guangdong Province, China, with a building area of 17,363 square meters. Heng Cheng is the main production facility of the Group's furniture manufacturing business. After the completion of the sale of Heng Cheng, in order to ensure that the Group's production operations will not be interrupted due to changes in equity ownership, the Group must negotiate a lease arrangement with Science City Group for the property. The lease agreement allows the Group to continue using similar production facilities to Heng Cheng for furniture manufacturing and sales, providing a legal basis for the Group to avoid relocation costs and production interruptions, and maintaining the stability of the Group's daily production operations.