S.T. Dupont S.A. (STDSA) as licensor and Bondwood Investments Limited (BIL), as licensee entered into the Renewal Agreement No. 5 on 26th March, 2024 regarding, inter alia, the renewal of the license agreement dated 21st March, 2018 as amended and renewed by two renewal agreements dated 18th March, 2021 and 22nd March, 2023 respectively (the Agreement No. 5) in respect of the granting of an exclusive license by the ST Dupont Group to the Group to distribute ready-to-wear apparel bearing the "S.T. Dupont" name, logo or trademark solely in the PRC (excluding Hong Kong) upon its expiry on 31st March, 2024 for a further period of one year commencing from 1st April, 2024 and ending on 31st March, 2025.

Pursuant to the Agreement No. 5, the ST Dupont Group granted an exclusive license to the Group to distribute ready-to-wear apparel bearing the "S.T. Dupont" name, logo or trademark solely in the PRC (excluding Hong Kong). The license fee payable by the Group under the Renewal Agreement No.

5 is calculated based on certain percentage (in the range of 50%. to 70%) on the royalties received by the Group from the sub-licensees on the sales of the relevant "S.T. Dupont" ready-to-wear apparel per year in the PRC (excluding Hong Kong). The license fee payable under the Renewal Agreement No.

5 shall be payable on a quarterly basis with a credit period of up to 30 days. The license fee payable is negotiated on an arm's length basis between the parties thereto and be determined based on normal commercial terms, after considering the participation and role of the Group, to ensure that the license fee is fair and reasonable and no less favorable to the Group than those available from the independent third parties at the relevant time. The maximum annual cap payable by the Group for the payment of the license fees in respect of the granting of an exclusive license by the ST Dupont Group to the Group to distribute ready-to-wear apparel bearing the "S.T. Dupont" name, logo or trademark solely in the PRC (excluding Hong Kong) under the Agreement No.

5 for the financial year ending 31st March, 2024 is HKD 6,000,000 as previously disclosed in the March 2023 Announcement. The estimated transaction amount under the Agreement No. 5 for the financial year ending 31st March, 2024 will be HKD 3,917,000 which will be below the maximum annual cap of HKD 6,000,000.

The maximum annual cap payable by the Group for the payment of the license fee in respect of the granting of an exclusive license by the ST Dupont Group to the Group to distribute ready-to-wear apparel bearing the "S.T. Dupont" name, logo or trademark solely in the PRC (excluding Hong Kong) under the Renewal Agreement No. 5 for the financial year ending 31st March, 2025 will be HKD 7,134,000 which is more than 0.1%. but less than 5%.

of each of the applicable percentage ratios of the company.