SINCERE (00244): Central store lease renewal unsuccessful, will cease operation in early December; plans to find a new location in the same district and continue operating the Mong Kok store and online shop.

SINCERE (00244) has announced that despite the company's intention to renew the lease of its Central store, which expires on December 31, 2026, it was unable to reach an agreement with the landlord regarding the lease renewal. As a result, the Central store will cease operation around early December, after which reinstatement works will be carried out and the premises returned to the landlord. The company intends to continue looking for a suitable location in the Central/Sheung Wan area to open a new department store. However, as of the date of this announcement, no suitable premises have been found. During this period, the group will continue to operate its department store business at the four-level shop at Concord Center, 628 Nathan Road, Mong Kok, Kowloon, as well as its online store at www.sincereonlinestore.com. In addition to its department store business, the group also operates outdoor sportswear retail outlets, marketing, and retail businesses in Tin Shui Wai and Wong Tai Sin respectively. The directors expect that the group's overall sales will decline due to the closure of the single Central store. However, due to savings in rent and other expenses, the group's operating loss may narrow. The group plans to invest more resources in product diversification and procurement, online retail, and brand reshaping. The directors will continue to monitor business optimization developments and assess the related operational impact.