We attach herewith the announcement made to The Stock Exchange of Hong Kong Limited ("The HKEx") on 28 September 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 lease agreement in respect of the property in Mianyang City, Sichuan Province, the People's Republic of China ("PRC").

On 28 September 2026, PRGL had announced that Mianyang Fulin Parkson Plaza Co., Ltd., an indirect wholly-owned subsidiary of PRGL, had on even date entered into a Lease Agreement with Mianyang Yuancheng Integrated Development Group Co., Ltd. in respect of the lease of the relevant areas and spaces in the basement level, first to fourth floors and the mezzanine of Zijing Plaza, Building 18, No. 89 Youxian Road, Youxian District, Mianyang City ("Property") for a term of 20 years, commencing from the actual opening date of the Property, which is expected to be 1 July 2027 and shall be no later than 1 October 2027 ("Lease Agreement").

Pursuant to the International Financial Reporting Standard 16 - Leases, the PRGL Group is to recognise the Property as a right-of-use asset. The entering into of the Lease Agreement and the transactions contemplated thereunder will be 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 Rmb60.9 million (equivalent to approximately RM37.1 million) ("Acquisition of Asset").

For the purpose of this announcement, an exchange rate of Rmb1.00: RM0.61 is assumed.

The entering into of the Lease 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 the 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.