CAQ Holdings Limited advised the completion of a major refurbishment of the Company's five level Exhibition Centre in Hainan Island. The refurbishment, which has been undertaken over the past year, was completed in May with
total refurbishment costs of approximately $4.58 million (RMB 21.3 million). Following completion of the works CAQ has successfully entered into a ten-year lease agreement for the whole of the 17,766sqm Exhibition Centre together with 1,000sqm of office accommodation within the CAQ precinct. The lease agreement, with Chgo (Hainan) Trading Co Ltd. (CHT) is for a ten-year period. The estimated monthly lease income on the Centre and Office space under the lease agreement is $153,460 (RMB713,108). The lease agreement provides a three-month rent free (incentive) period for the first three months of the agreement. As a consequence of the rent-free period provided under the lease agreement, the Company's financial performance will not be majorly impacted until after the September Quarter 2022.