(01355.HK) announced that on December 24, 2021 (after trading hours on the Stock Exchange), Shenzhen Jun, an indirect wholly-owned subsidiary of the Company, entered into a letter of intent with Shenzhen Zhaohua, under which Shenzhen Zhaojun could lease properties under development in Shenzhen, China for residential operation.

These properties are adjacent to some parts of the properties under development at the Shenzhen International Convention and Exhibition Centre and are expected to have a rentable area of about 10,000 square metres. For an initial period of 15 years, it is currently expected to be around the fourth quarter of 2022 starting from the occupation of these properties by Shenzhen dredging.

The Group intends to expand the coverage of its accommodation business and has been exploring suitable locations. As these properties will be built near Shenzhen International Convention and Exhibition Centre and Shenzhen Baoan International Airport, the company considers that the possible lease of new these properties is a good opportunity to expand the accommodation business.

Shenzhen Zhaohua is owned by China Merchants Shekou Industrial Zone holding Co., Ltd., a non-wholly-owned subsidiary of the state-owned enterprise China Merchants Group Co., Ltd., and Shenzhen overseas Chinese Town Co., Ltd., a non-wholly-owned subsidiary of the state-owned overseas Chinese Town Group Co., Ltd., respectively.