Zitong Financial App NewsletterChina Travel Service Hong Kong (00308)In an announcement, on October 12, 2021, the company entered into a share sale and purchase agreement with Ceylon Hotels, in which the company agreed to acquire 50 per cent of its stake in Handhuvaru from Ceylon Hotels for a consideration of US $4.494 million (the remaining 50 per cent of Handhuvaru is held by Zhenhua Engineering). Handhuvaru owns the lease on the Maldivian island of Ambala, and the prerequisites for the acquisition include the approval by the Maldivian government of the Ambala development environment assessment report. Upon completion of the acquisition, the company will reach an agreement with Zhenhua Engineering to jointly develop Ambala into a mid-to-high-end resort with about 100 rooms.

Maldives, a world-renowned tourist destination, continued to benefit from the growth in demand and tourism consumption of Asian tourists, especially Chinese tourists, before the COVID-19 epidemic. At present, the number of tourists has recovered well, and it is expected to return to healthy growth after the epidemic. Focusing on the strategic positioning of creating a "first-class tourism destination investment and operation service provider", the company has been actively seeking investment opportunities in the Maldives to achieve higher returns and long-term growth. Ambara Island is located in Wawu Atoll, about 90 kilometers away from male International Airport, with convenient transportation, rich tourism resources and good development potential. therefore, the company believes that the acquisition is highly consistent with the company's business development strategy.

It is reported that Zhenhua Project is a wholly-owned subsidiary of China Harbor, which is mainly engaged in transportation infrastructure construction around the world, covering more than 100 countries and regions, and has experience in the development and construction of large-scale projects in the Maldives, including the successful construction of two resorts. The cooperation between the company and Zhenhua Project will complement each other's advantages, contribute to the development and operation of the Ambala project, and create a win-win situation for both sides.