We attach herewith the announcement made to The Stock Exchange of Hong Kong Limited (“The HKEx”) on 7 August 2025 by Parkson Retail Group Limited (“PRGL”), a 54.97% owned subsidiary of Parkson Holdings Berhad (“PHB” or the “Company”) listed on The HKEx, on the entering into of a lease termination agreement in respect of the properties located in Beijing, the People’s Republic of China (“Properties”) (“PRGL Announcement”).

On 7 August 2025, PRGL had announced that Parkson Retail Development Co., Ltd. (“Tenant”), an indirect wholly-owned subsidiary of PRGL, had entered into a lease termination agreement with China National Arts and Crafts Group Company Limited (“Landlord”) in respect of the Properties (as set out in the PRGL Announcement) to early terminate the remaining lease term of the Properties with effect from 1 January 2026 (“Lease Termination Agreement”).

Pursuant to the International Financial Reporting Standard 16 - Leases issued by the International Accounting Standards Board, the entering into of the Lease Termination Agreement as a tenant will require the PRGL Group to derecognise the Properties as right-of-use assets for which the amount is approximately Rmb127.1 million (equivalent to approximately RM76.3 million). Thus, the entering into of the Lease Termination Agreement and the transactions contemplated thereunder will be regarded as a disposal of assets by the PRGL Group under the Rules Governing the Listing of Securities on The HKEx (“Listing Rules”) (“Derecognition of Assets”). Pursuant to the Lease Termination Agreement, the Tenant shall pay to the Landlord a penalty of Rmb11,701,175.60 (equivalent to approximately RM7.0 million) (“Penalty Payable”) before 10 October 2025.

For the purpose of this announcement, an exchange rate of Rmb1.00: RM0.60 is assumed.

As all applicable percentage ratios under Rule 14.07 of the Listing Rules in respect of the transactions contemplated under the Lease Termination Agreement are less than 5%, the entering into of the Lease Termination Agreement does not constitute a notifiable transaction of PRGL under the Chapter 14 of the Listing Rules.

The Derecognition of Assets and the Penalty Payable do not have a material impact on the earnings of the PHB Group for the financial year ending 31 December 2025 and the net assets of the PHB Group based on the audited consolidated statement of financial position of the Company as at 31 December 2024.