Poly Property Group Co., Limited and China Resources Land Limited acquired a piece of land of about 9,481 square metres located in Kai Tak, Kowloon from the Government of the HKSAR through a public tender in June 2019. It is proposed that the Land will be developed through a joint venture company which is held as to 35% by the Company and 65% by CRL. It is intended by the shareholders to the JV Co that the Land will be developed into a composite development comprising primarily of residential properties. The parties have entered into a joint venture agreement on 26 November 2021 to set out their rights and obligations in relation to the JV Co and to regulate the operation and management of the JV Co going forward. Pursuant to the JVA, the parties agree that the scope of business of the JV Co is to acquire, hold and develop the Land in compliance with the terms and conditions of the JVA with the prime objective of selling or letting of the units, buildings and any parts to be developed and constructed on the Land according to the decision of the shareholders of the JV Co and the land grant conditions made from time to time by reference to the prevailing real estate market condition.