09:25     AEON STORES<00984> - Announcement (2)                               

    Commission Payment Transactions                                           
    Under the Agreement, the Company shall pay to Aeon Credit                 
    commissions in return for Aeon Credit providing customers of              
    the Company with various credit purchase and hire purchase                
    facilities. The commissions are calculated on the basis of                
    a fixed percentage of the sales generated by the credit                   
    purchase or hire purchase facilities provided by Aeon Credit.             
    Currently, the Company has agreed to pay commissions to Aeon              
    Credit for providing the following credit facilities to                   
    customers of the Group:                                                   
                                                                              
    (i)   credit purchase facilities made available to customers              
    of the Group for making purchases at the Group's stores using             
    AEON JUSCO VISA Card, AEON JUSCO MasterCard, AEON JUSCO                   
    American Express Credit Card and any other co-branded credit              
    cards; and                                                                
                                                                              
    (ii)   hire purchase facilities made available to customers               
    of the Group for making purchases of selected goods and/or                
    services at the Group's stores.                                           
                                                                              
    The commission rates payable by the Company to Aeon Credit                
    in respect of the current Commission Payment Transactions are             
    determined by agreement between the Company and Aeon Credit               
    from time to time after negotiations at arm's length. In                  
    negotiating and agreeing the commission rates and other terms             
    of the Commission Payment Transactions with Aeon Credit, the              
    Company take into account the prevailing market commission                
    rates for similar types of transactions that are offered by               
    competitors of Aeon Credit to the Company and gives credit                
    to Aeon Credit for any additional services provided by Aeon               
    Credit which are not offered by competitors of Aeon Credit.               
                                                                              
    The Agreement also provides that, subject to compliance with              
    the Listing Rules, the Company and Aeon Credit may also enter             
    into additional Commission Payment Transactions in respect                
    of other credit cards, hire purchase facilities and/or other              
    credit purchase facilities that may be provided by Aeon                   
    Credit to the Group's customers  from time to time. The                   
    Company will negotiate and agree the commission rates and                 
    other terms of future Commission Payment Transactions with                
    Aeon Credit on the current basis as mentioned above.                      
                                                                              
    The Directors, including all the independent non-executive                
    directors, consider that the Agreement and the Commission                 
    Payment Transactions are on normal commercial terms, that                 
    their respective terms are fair and reasonable and in the                 
    interest of the Company and its shareholders as a whole and               
    that the entry into the Agreement and the Commission Payment              
    Transactions is in the ordinary and usual course of the                   
    Company's business.                                                       
                                                                              
    The Annual Cap                                                            
    The Directors estimate that the maximum aggregate amount (the             
    "Annual Cap") payable in respect of the Commission Payment                
    Transactions under the Agreement will not exceed                          
    HK$20,900,000. The Annual Cap has been determined by                      
    reference to the highest annual amount paid by the Company                
    to Aeon Credit in respect of the Commission Payment                       
    Transactions during the past three years to which a cushion               
    of 15% has been added to provide flexibility to take account              
    of possible changes in the volume of Commission Payment                   
    Transactions.                                                             
                                                                              
    The Company will comply with the continuing obligations under             
    Rules 14A.37-41 of the Listing Rules and will re-comply with              
    the relevant Listing Rules if the Annual Cap is exceeded, when            
    the Agreement is renewed and when there is a material change              
    to its terms.                                                             
                                                                              
    General                                                                   
    The principal activities of the Group are the operation of                
    general merchandise stores.                                               
                                                                              
    The principal activities of Aeon Credit are the provision of              
    consumer credit finance services including the issue of                   
    credit cards, the provision of vehicle financing, hire                    
    purchase financing and personal loan financing.