New World Development : Joins Forces with SOE Shum Yip Group to Explore and Develop Real Estate Projects in Northern Metropolis and Other Initiatives

New World Development Company Limited ("New World") and SOE Shum Yip Group Limited ("Shum Yip Group") sign a strategic partnership agreement. The two parties are set to leverage their respective resources and development experiences to jointly explore and develop the innovation and technology (I&T) zone in Northern Metropolis and other initiatives.

The strategic partnership agreement was signed on 10 May in Shenzhen. Witnessing the signing of the Agreement were Mr. Ma Siu-cheung, Executive Director and Chief Operating Officer of New World Development, and Mr. Wang Yuwen, President of Shum Yip Group; and it was signed by Mr. Edward Lau, Chief Financial Officer of New World Development and Mr. Yeo Kee Whye, Vice President of Shum Yip Group. According to the agreement, the two parties will jointly explore new development directions and operational models in the field of industrial I&T in Shenzhen and Hong Kong. They aim to develop landmark projects for industry collaboration in the Guangdong-Hong Kong-Macao Greater Bay Area. The two parties will also jointly establish a working group to seek partnership opportunities across all areas.

Shum Yip Group is wholly owned by the Shenzhen Municipal People's Government and is an integrated conglomerate directly managed by State-owned Assets Supervision and Administration Commission of Shenzhen Municipal. Its core businesses cover property development, industrial parks development and operations, comprehensive urban operation services and childcare and elderly care services, among others, with nearly 200 development projects across 58 cities in 20 provinces, including Shenzhen landmark project Shum Yip UpperHills. Shum Yip Group has long been committed to the development and operation of industrial parks. Over the past 40 years, Shum Yip Group has built and operated a total of 63 industrial parks, with a management area of more than 258 million square feet, hosting 17,000 enterprises.

New World currently owns approximately 15 million square feet of farmland in Northern Metropolis, much of it in prime locations with well-connected transport links. The Group is actively exploring different channels to accelerate the release of the value of its farmland in the area. It has earlier partnered with two state-owned enterprises to develop residential and commercial residential projects, involving a total of about 4,000 units with over 1.72 million square feet of gross floor area.