China, September 5, 2026 - King Salman Energy Park (SPARK) and Dalipal Holdings Limited announced the signing of a 25-year land lease agreement for a 1,030,916-square-meter site at SPARK, marking a major milestone in Dalipal’s plans to establish a high-end energy equipment intelligent manufacturing base in Saudi Arabia.

Under the agreement, Dalipal International for Industry Company, a wholly owned subsidiary of Dalipal Holdings Limited (HKEX: 1921), will develop the site as a major manufacturing platform serving Saudi Arabia, the Middle East and international markets. The agreement represents the transition of the project from strategic planning into a long-term development and execution phase. The Saudi development is expected to involve total investment of approximately US$2.1 billion, with Phase 1 representing approximately US$600 million. The investment will support advanced manufacturing capabilities for seamless steel pipes including OCTG, drill pipes and hydrogen pipes. Strategically located within SPARK, the project will benefit from an integrated industrial ecosystem, infrastructure, utilities and logistics connectivity, as well as proximity to Saudi Arabia’s major energy and industrial markets. The development is expected to strengthen local manufacturing capacity and contribute to the localization of strategic energy-sector supply chains.

Mishal Al-Zughaibi, President & CEO of SPARK, said: “The signing of this 25-year lease marks a defining milestone in Dalipal’s investment journey at SPARK. A US$600 million first phase and an overall development ambition of approximately US$2.1 billion demonstrate the scale of Dalipal’s commitment to Saudi Arabia and the confidence of leading Chinese industrial companies in the Kingdom’s long-term growth story. We are proud to partner with Dalipal in building a world-class manufacturing platform that will strengthen localization, create high-value industrial capabilities and serve energy markets across the region.”

Meng Fanyong, the Chairman of Dalipal Holdings said: “Saudi Arabia is a strategically important market for Dalipal and a key pillar of our international development strategy. Establishing an advanced manufacturing base at SPARK will allow us to be closer to our customers, optimize regional supply chains and build a long-term platform for growth in the Middle East. We are pleased to move forward with SPARK and look forward to contributing our technology, manufacturing capabilities and international experience to Saudi Arabia’s industrial development. We are confident this project will become a benchmark for China-Saudi economic cooperation.”

The project builds on the Letter of Intent signed between Dalipal and SPARK in November 2024 for the development of a seamless steel pipe manufacturing facility exceeding one million square meters. Dalipal has since advanced its Middle East strategy, including the establishment and development of its Saudi subsidiary and preparation of its high-end, green and intelligent manufacturing platform. The investment is aligned with Saudi Vision 2030, including the localization of high-value industries, development of domestic supply chains, attraction of international investment and strengthening Saudi Arabia’s position as a global industrial and energy hub.

About Dalipal Holdings Limited

Dalipal Holdings Limited (HKEX: 1921) is a manufacturer focused on high-end, green and intelligent manufacturing of energy-related pipes and equipment, serving oil and gas, new-energy and specialized energy applications.

To learn more, please visit www.dalipal.com