Tung Kok Tau in Shenzhen

For the year ended 30 June 2025, the Group developed a plot of land no. K709-0003 located in Tung Kok Tau, Nanshan District, Shenzhen (the “Land”), which was granted to the Group by 深圳市規劃和自然資源局南山管理局(Nanshan Administration of Shenzhen Municipal Bureau of Planning and Natural Resources) (the “Bureau”) last year.

The Land is primely located to the east of 後海大道 (Hou Hai Avenue), to the south of 蛇口新街 (Shekou New Street), to the north of 望海路 (Wang Hai Road) and to the west of 後海濱路 (Hou Hai Bin Road), which is at the premier waterfront cultural and leisure region in Tung Kok Tau, Nanshan Distract. It covers a site area of approximately 65,000 square metres for multi-purpose development, with a developable gross floor area of approximately 179,000 square metres, comprising about 143,000 square metres for residential use and 29,000 square metres for commercial use and other supporting ancillary facilities.

During the year, the Group commenced development of the Land and had been working closely with various relevant government authorities and stakeholders on development options and master planning of the Land. These plans align with the city planning and infrastructure, including development of metro line and station, to support cultural and leisure facilities in the region and the opera house nearby. As for the construction and development costs of the Land, it is projected that the funding will derive from internal resources, bank financing and other applicable means as appropriates. Various major banks have positively indicated appropriate financing terms for the property development of the Land, and the Group will endeavor to secure the most favorable financing for the project.

Shenzhen is poised to remain a pioneer in economic and digital competitiveness as premier special economic zone and global hub for innovation, entrepreneurship and advanced technology with high-quality development under official support and stimulus policy, particularly Nanshan District as high-end, tech-centric area. In addition, the development of transportation network and infrastructure projects in Shenzhen stimulates intra-city and intercity connections, solidifying its role as the driving impetus for the sustainable growth and development of Guangdong-Hong Kong Macao Greater Bay Area.

Meanwhile, the local property market shows signs of policy-driven stabilization, evidenced by high-price land auction in key plots and recent swift sales of new premium-quality residential projects. A promising outlook of Shenzhen’s property market is supported by its reputation as a highly livable city and government stimulus policies for property sector. Together with the optimized city planning as quality cultural and leisure area in addition to metro line and station near opera house in Tung Kok Tau, Nanshan District, Shenzhen, this will further enhance the future development value of the Land.

Simultaneously, the Group will continue to work closely with the relevant authorities and parties to explore various development options to optimise the future development value of the Land in alignment with city planning and the projects of adjacent opera house and infrastructure for the best interests of the Company and its shareholders.

Further details can refer to the annual report of the Company for the year ended 30 June 2025.