We attach herewith the announcement made to The Stock Exchange of Hong Kong Limited ("The HKEx") on 29 May 2026 by Parkson Retail Group Limited ("PRGL"), listed on The HKEx and a 54.97% owned subsidiary of Parkson Holdings Berhad ("PHB" or the "Company") in relation to the discloseable transaction on the entering into a new business entrusted management agreement in respect of a property in Kunming City, the People's Republic of China ("PRC") ("Property").

On 29 May 2026, PRGL had announced that Kunming Yun Shun He Retail Development Co., Ltd., an indirect wholly-owned subsidiary of PRGL, had on even date entered into the Second Management Agreement with Brilliant Group Co., Ltd. (formerly Kunming Bolian Real Estate Development Co., Ltd.) in respect of the entrustment of business management rights of the atrium area of the Property ("Property Atrium") for a further duration from 1 October 2026 to 15 January 2038 (or the date of termination of the Existing Lease Agreement, whichever is earlier) ("Second Management Agreement").

Pursuant to the International Financial Reporting Standard 16 - Leases, the PRGL Group is to recognise the Property Atrium as a right-of-use asset. The entering into of the Second Management Agreement together with the transactions contemplated thereunder, is regarded as an acquisition of asset by the PRGL Group under the Rules Governing the Listing of Securities on The HKEx ("Listing Rules"), and the amount recognised by the PRGL Group is approximately Rmb33.5 million (equivalent to approximately RM19.8 million) ("Acquisition of Asset").

For the purpose of this announcement, an exchange rate of Rmb1.00: RM0.59 is assumed.

The entering into of the Second Management Agreement constitutes a discloseable transaction for PRGL as the highest applicable percentage ratio exceeds 5% but is less than 25%, and is therefore subject to reporting and announcement requirements but is exempted from the circular and shareholders' approval requirements under Chapter 14 of the Listing Rules. 

The Acquisition of Asset does not have a material impact on the earnings of the PHB Group for the financial year ending 31 December 2026 and the net assets of the PHB Group based on the audited consolidated statement of financial position of the Company as at 31 December 2025.