According to the Zhitong Finance App, Xianshi (00244) issued an announcement. Although the company intended to renew the Central store, which expires on December 31, 2026, it was unable to reach an agreement with the owner on the renewal of the lease. As a result, the Central store will cease operations around the beginning of December, and the store will then be restored and returned to the owners.

The company plans to continue to find suitable locations to open new department stores in the Central/Sheung Wan region. However, as of the date of publication of this announcement, no suitable venue has been found. During this period, the Group will continue to operate the department store located on the fourth floor of Kung Wah Centre, 628 Nathan Road, Mongkok, Kowloon, and the online store at www.sincereonlinestore.com.

In addition to the department store business, the Group also operates outdoor sportswear retail sales, marketing and retail business in Tin Shui Wai and Wong Tai Sin respectively.

The directors expect that the Group's overall sales will decline due to the single operation of the Central Branch. However, due to savings in rent and other expenses, the Group's operating losses may be reduced. The Group plans to invest more resources in product diversification and procurement, online retail and rebranding. The directors will continue to pay attention to the optimal development of the business and evaluate the relevant operational impacts.

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