KRP DEVELOPMENT (02421) announced that on August 4, 2025 (after trading hours), the company's indirect wholly-owned subsidiary Guangdong Jialang (as tenant) entered into a lease agreement with Dongguan Longfa Industrial Investment Co., Ltd. (landlord) regarding the lease of the land. The theme park known as Dragon Phoenix Villa (the theme park) is currently situated on the land and will be further developed by Guangdong Jialang. Through operating 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 local real estate economic growth and development.

The land is adjacent to the land behind Guanjingtou Village in Dalong Industrial Zone, Fenggang Town, Dongguan City, China, covering an area of approximately 145,600 square meters. Currently, the theme park is located on this land, forming a plot with a total area of approximately 145,600 square meters, adjacent to the group's property development projects within Dalong Industrial Zone. As the theme park is located near the group's property development projects in Fenggang Town, Dongguan City, China, it forms part of the supporting facilities for the group's property development projects (particularly Phases 4 and 5 of Dongguan Jiahui Grand Court). The group plans to further invest in and develop its facilities through leasing and operating the theme park, aiming to enhance its attractiveness and expand its scale.

The theme park, currently a national 4A-level themed tourist attraction, is strategically located in Dongguan Fenggang, adjacent to Shenzhen, in the heart of the Greater Bay Area. Surrounded by natural scenery and possessing excellent natural resources, it is suitable for developing various tourism products. After more than ten years of operation, the theme park has gained widespread market recognition and influence, laying a solid foundation for further high-end and diversified development. Therefore, the directors believe that the strong consumer demand in the Greater Bay Area and the thriving local activities provide the theme park with tremendous potential market opportunities.

The directors expect that the operation of the theme park will bring the following benefits to the group: (a) Business portfolio expansion: Operating the theme park through a cultural tourism business model, generating stable revenue and cash flow by integrating entertainment, hotels (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 China's cultural tourism market; (b) Adjacent property and rental appreciation: 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, adjacent properties to the theme park are expected to appreciate in value, thereby driving up shop rental values and stimulating property sales in surrounding areas. Particularly, the surrounding areas of Phases 4 and 5 of Jiahui Grand Court are expected to benefit from this upgrade, which is anticipated to stimulate their sales, with such sales having already begun recently; (c) Distinctive cultural tourism positioning: Through operating the theme park, the group hopes to create a "tourism town" and position it as a successful cultural tourism asset, building the group's brand effect for developing projects with rich cultural and tourism elements. This brand effect is expected to drive the group's future collaborations, such as exploring more culturally and tourism-themed projects, and exploring geographical expansion opportunities for theme parks through franchising and/or management operations; and (d) Enhanced competitive advantages: The successful development of the theme park represents recognition of the group's operational capabilities in 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 future collaborations, and enter other regions in China to expand the group's business.