Future Bright Holdings Limited Announces Discloseable Transaction: Renewal of Right to Use Agreement

Key Points of the Announcement

• On 30 April 2026, Future Bright Holdings Limited (“FBHL”) announced that its wholly-owned subsidiary, Restaurante Chun Ieng Limitada (“Chun Ieng”), signed a renewal agreement for the right to use a property at The Venetian Macao, Macau.
• The lease covers Shop No. 2522 at Level 3, Shoppes at Venetian, with a gross floor area of approximately 1,297 square feet.
• The agreement, pending countersignature by the Owner (Venetian Cotai Limited), grants Chun Ieng the right to use the property for a 3-year term from 1 January 2027 to 31 December 2029.
• The property will be used exclusively as a food court stall specializing in ramen, sizzling steak, and related Japanese cuisine.
• The monthly base rental fee (“Base Fee”) is set at:
  • HK\$609,590 for the first year
  • HK\$622,560 for the second year
  • HK\$635,530 for the third year
• Additionally, Chun Ieng must pay an annual turnover fee (“Turnover Fee”), calculated as 18% of the annual turnover from business conducted in the property, less the aggregate base fee for the year.
• Management fee and other levies: Approximately HK\$112,748 per month, increasing by 5% annually unless otherwise notified by the Owner.
• Security deposit: HK\$1,906,590 in cash and HK\$1,906,590 by bank guarantee, with adjustments required if the base fee increases.
• Right-of-use asset: The total present value of rental payments, including stamp duty and estimated reinstatement costs, is estimated at HK\$19,725,000, discounted at 8.41% per annum.
• The rental and related payments will be settled in cash using internal resources.

Details That May Be Price Sensitive for Shareholders

• Discloseable Transaction: The renewal constitutes a discloseable transaction under Chapter 14 of the Hong Kong Listing Rules. It requires notification and announcement but is exempt from shareholders’ approval.
• Implications for Financial Reporting: Under HKFRS16, FBHL will recognize the right to use the property as a right-of-use asset, potentially impacting its balance sheet and future earnings.
• Strategic Importance: FBHL has operated a food court counter at this location since 2008, with generally satisfactory performance. The Board believes continued operation will generate stable turnover and profit, particularly given the increasing visitor arrivals to Macau.
• Market Rent and Terms: The lease terms were negotiated at arm’s length and are considered to be on normal commercial terms, reflecting prevailing market rent for similar properties.
• Owner Information: The Owner, Venetian Cotai Limited, is ultimately owned by Sands China Ltd., a major player listed on the Hong Kong Stock Exchange.

Company and Counterparty Profiles

• Future Bright Holdings Limited: Principally engaged in food sales, catering, souvenir, and property investment.
• Restaurante Chun Ieng Limitada: Wholly-owned subsidiary of FBHL, operates restaurants and food court counters in Macau.
• Venetian Cotai Limited: Owner and lessor, operates hotels, restaurants, shopping malls, and convention centers in Macau. Ultimate beneficial owner is Sands China Ltd.

Potential Impact on Share Price

• This renewal secures a strategic and historically profitable location for FBHL in one of Macau’s premier tourist destinations.
• Stable rental terms and continued presence in the Venetian Macao may support revenue and profit stability, which can be considered positive for investors.
• Recognition of a significant right-of-use asset (HK\$19.7 million) may affect FBHL’s financial statements, but the transaction is not large enough to require shareholder approval.
• Shareholders should monitor Macau visitor trends, as higher arrivals may boost FBHL’s food court revenue and profitability.

Board Statement

The Board, comprising Mr. Chan Chak Mo (Managing Director), Mr. Chan See Kit, Johnny (Chairman and Executive Director), Ms. Leong In Ian (Executive Director), and independent non-executive Directors Mr. Chek Kuong Fong, Mr. Yu Kam Yuen, Lincoln, and Mr. Vong Hou Piu, considers the lease renewal to be fair, reasonable, and in the best interests of the Company and its shareholders.

Disclaimer

This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own due diligence and consult professional advisors before making investment decisions. The information herein is based on company announcements and may be subject to change.

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