The Board of Haichang Ocean Park Holdings Ltd. announced that the Group has recently entered into a non-legally binding memorandum of understanding (the "MOU") with the Tourism Development Fund of Saudi Arabia ("TDF") for the proposed joint development of a Haichang Ocean Park project in the Kingdom of Saudi Arabia under the tourism strategy of Saudi Arabia (the "Project"). TDF was established by Royal Decree in June 2020 to empower one of Saudi Arabia's most rapidly growing industries, namely the tourism industry. With USD4 billion in capital, TDF aims to facilitate local and international investors' access to tourism investments across key destinations in Saudi Arabia.

Pursuant to the terms of the MOU, the parties will review and identify the available opportunities for developing the Project; agree on an appropriate structure for the purpose of investing in and/or funding the Project; and identify the potential lands for developing the Project. TDF will be primarily responsible for studying the opportunities of securing funding for the Project and/or investing in the Project, while the Group will be primarily responsible for the development and collaborative operation of the Project in accordance with the requirements of TDF, the introduction of world-class IPs for the Project, the assignment of contractors to carry out the Project construction, the introduction of marine animal resources and proprietary marine technology, and other matters. The Board is of the view the cooperation marks significant progress in the Group's benchmark project for "going global" - the ocean cultural tourism comprehensive project in Saudi Arabia, and is of strategic significance in the Company's internationalization process.

The cooperation will integrate the advantageous resources of both parties and help the Group to establish an international brand, and to build a worldwide leisure and entertainment platform featuring marine culture. As the MOU is not legally binding, the Project and matters thereunder may or may not proceed.