eprint Group Limited Announces Discloseable Transaction: New Lease Agreement with Canon for HK\$3.36 Million

Key Highlights

• New Lease Agreement Signed: On 4 May 2026, Promise Network Printing Limited (a wholly owned subsidiary of eprint Group Limited) entered into a new lease agreement with Canon Hongkong Company Limited for the leasing of advanced printing machinery and equipment.
• Equipment Details: The lease covers one unit each of the imagePRESS V1000 and ImagePRESS Server D3000, both high-performance printing and processing machines from Canon.
• Lease Term and Value: The lease term runs from June 2026 to May 2028, with total fixed lease payments amounting to HK\$3.36 million, payable in equal monthly instalments of HK\$140,000.
• Financial Reporting Impact: Under Hong Kong Financial Reporting Standard 16 (“Leases”), this agreement requires eprint Group to recognize a right-of-use asset of approximately HK\$3.36 million on its consolidated balance sheet.
• Listing Rules and Disclosure: The transaction is classified as a discloseable transaction under Chapter 14 of the Hong Kong Listing Rules, as its percentage ratio exceeds 5% but is less than 25%. This means it is subject to notification and announcement requirements, but not to circular or shareholder approval.

Implications for Shareholders and Potential Share Price Impact

• Upgrade to Production Capability: The new lease allows the Group to maintain and potentially enhance its production capacity, efficiency, and the quality of its printing services. This strategic move is expected to better position the Group to meet its ongoing business needs and client demands in the competitive Hong Kong printing market.
• Cost and Financing: The lease payments will be financed through internal resources, which implies no immediate need for external financing or equity dilution.
• Normal Commercial Terms: The lease payments and arrangement were determined after arm’s length negotiations, considering current market rates and the advanced features of the leased equipment. The Directors believe the terms are fair, reasonable, and in line with standard industry practices.
• No Related Party Concerns: Canon Hongkong Company Limited and its ultimate beneficial owners are independent third parties and are not connected persons to the Group, limiting any potential conflict of interest concerns.
• Potential Share Price Sensitivity: This transaction may be price-sensitive as it reflects the Group’s ongoing commitment to investing in technology and operational capacity, which could positively influence market perceptions about its growth prospects and earnings potential. Investors should note the capital commitment and its potential to drive revenue growth or operational efficiency improvements.

Background Information

eprint Group Limited is a Cayman Islands-incorporated company listed on the Main Board of the Hong Kong Stock Exchange (stock code: 1884). It provides printing services to a broad customer base in Hong Kong and also offers solutions for advertising, hardcover books, and stationery. The lessee, Promise Network Printing Limited, is an indirect wholly owned subsidiary, focused on printing services in Hong Kong.

The lessor, Canon Hongkong Company Limited, is a subsidiary of the Canon group, a global leader in imaging and optical equipment, headquartered in Tokyo, Japan (TSE: 7751).

Board Statement

The Board, including independent non-executive Directors, unanimously agrees that entering into this New Lease Agreement is in the ordinary and usual course of business and in the best interests of the Company and its shareholders as a whole. They further confirm that the agreement is on normal or better commercial terms and is fair and reasonable.

Conclusion

Investors should closely monitor the rollout and operational impact of this new lease agreement, as it represents a significant investment in the Group’s production infrastructure. The move underscores eprint’s strategy to maintain competitiveness and operational efficiency in a dynamic market. Depending on execution and market conditions, the transaction could have a material effect on the Group’s performance and, by extension, its share price.

Disclaimer: The above article is for informational purposes only and does not constitute investment advice. Investors should conduct their own research or consult professional advisors before making any investment decisions. The Company and the author accept no responsibility for any consequences arising from reliance on this information.

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