We attach herewith the announcement made to The Stock Exchange of Hong Kong Limited ("The HKEx") on 15 March 2024 by Parkson Retail Group Limited ("PRGL"), a 54.97% owned subsidiary of Parkson Holdings Berhad ("PHB" or the "Company") listed on The HKEx, pursuant to Rule 13.18 of the Rules Governing the Listing of Securities on The HKEx in respect of a loan agreement entered into by PRGL with a syndicate of banks, as lenders, on 15 March 2024 in relation to a syndicated loan facility in an aggregate amount of up to Rmb2,500,000,000 (equivalent to approximately RM1,625 million) ("Loan Facility") for a term of 36 months commencing from the first drawdown date ("Loan Agreement") ("PRGL Announcement"). The Loan Facility is to refinance the existing loans of the PRGL Group.

The Loan Agreement imposes, among others, a specific performance obligation on a controlling shareholder of PRGL. Pursuant to the Loan Agreement, Tan Sri Cheng Heng Jem (together with his wife, Puan Sri Chan Chau Ha alias Chan Chow Har, who is deemed to be interested in Tan Sri Cheng Heng Jem’s interest in PRGL) ("Controlling Shareholder") shall remain the single largest ultimate beneficial owner of PRGL. In the event the Controlling Shareholder ceases to be the single largest ultimate beneficial owner of PRGL, all outstanding advances and all interests accumulated thereon, and all or any other sums payable by PRGL under the Loan Agreement will be declared as immediately due and payable, and the total commitment under the Loan Agreement will be cancelled.

As at the date of the PRGL Announcement, the Controlling Shareholder is indirectly interested in approximately 54.97% of the issued share capital of PRGL.

The entering into of the Loan Agreement by PRGL does not have a material impact on the earnings of the PHB Group for the financial year ending 31 December 2024 and the net assets of the PHB Group based on the audited consolidated statement of financial position of the Company as at 31 December 2022.