KRP DEVELOPMENT plans to lease land in Fenggang Town, Dongguan City, to undertake the operation of a theme park named Longfeng Mountain Villa

According to the announcement from KRP DEVELOPMENT (02421), on August 4, 2025 (after trading hours), the company's indirect wholly-owned subsidiary Guangdong Jialang (as the tenant) entered into a lease agreement with Dongguan Longfa Industrial Investment Co., Ltd. (the owner) regarding the leasing of the land. The theme park named Longfeng Mountain Villa (the theme park) is currently located on this land and will be further developed by Guangdong Jialang. Through the operation of the theme park, the group aims to diversify its revenue sources and business investments, enhance the value of adjacent properties, thereby driving up rental values and property sales in the area, ultimately promoting the growth and development of the local real estate economy. The land is adjacent to the land behind the mountain in Guanjingtou Village, Dalong Industrial Zone, Fenggang Town, Dongguan City, China, covering an area of approximately 145,600 square meters. Currently, the theme park is situated on this land, constituting a total area of approximately 145,600 square meters, adjacent to the group's property development project in Dalong Industrial Zone. Due to the proximity of the theme park to the group's property development project in Fenggang Town, Dongguan City, it forms part of the group's property development project (especially the fourth and fifth phases of Dongguan Jiahui Haoting) supporting facilities. The group plans to take over the operation of the theme park through leasing, further invest in and develop its facilities, aiming to enhance its attractiveness and expand its scale. The theme park, currently a national 4A-level theme tourism attraction, is strategically located in Fenggang, Dongguan, near Shenzhen, in the heart of the Greater Bay Area, surrounded by natural scenery and possessing excellent natural resources, suitable for developing various tourism products. After more than ten years of operation, the theme park has gained wide market recognition and influence, laying a solid foundation for further upscale and diversified development. Therefore, the board believes that the strong consumer demand in the Greater Bay Area and the thriving local activities provide a huge potential market for the theme park. The board anticipates that the operation of the theme park will bring the following benefits to the group: (a) Expanding the business portfolio: By operating the theme park through a cultural tourism business model, stable revenue and cash flow will be generated through the integration of entertainment, hotel (dining and accommodation), and leisure activities. This diversified revenue model complements the group's core residential property development business and helps expand the group's brand into the Chinese cultural tourism market; (b) Appreciation of adjacent properties and rental values: The integration of cultural tourism business operations is expected to drive local real estate economic growth and development. By improving the overall environment and facilities, it is anticipated that adjacent properties to the theme park will appreciate, thereby driving up shop rental values and stimulating property sales in the surrounding areas. In particular, the surrounding areas of the fourth and fifth phases of Jiahui Haoting are expected to see stimulated sales due to this upgrade, which has already begun recently; (c) Distinctive cultural tourism positioning: Through the operation of the theme park, the group hopes to create a "tourism town" and position it as a successful cultural tourism asset, building a brand effect capable of developing projects with strong cultural and tourism elements. It is expected that this brand effect will promote the group's future collaborations, such as exploring more culture and tourism-themed projects and seeking regional expansion opportunities for the theme park through franchising and/or management operations; and (d) Enhance Competitive Advantage: The successful development of the theme park is a recognition of the group's operational capabilities in the theme park business and can strengthen the group's cultural tourism brand. The group can leverage this to enhance its image, attract various high-quality collaborations in the future, and expand its business into other regions of China