Zhongyuan Airport (00357) announced that on October 19, 2024, the company entered into a joint venture company contract with the independent third party Singapore Changi Airport (China) Co., Ltd. (Changi China) to establish a joint venture company in Hainan. The joint venture company is held by the company and Changi China at 51% and 49% respectively.

The joint venture company aims to exclusively operate and manage certain specific non-aviation businesses (including retail, dining, leisure, advertising, and VIP services, etc.) at Haikou Meilan International Airport. In this regard, the company will further enter into a franchise agreement with the joint venture company, with the agreement covering the franchise scope, franchise fees, designated operations, personnel and the transfer of related assets, as well as the rights and obligations of the company and the joint venture company.

The announcement mentioned that Changi China is a wholly-owned subsidiary of Changi Airports International Pte. Ltd. (CAI). Through the establishment of the joint venture company, Changi China is expected to leverage the advantages of CAI in various aspects (including investment management, brand introduction, and airport planning, etc.) to empower the commercial operation of Meilan Airport. Leveraging the experience and professional capabilities of Changi China and CAI in airport commercial operations, this collaboration will propel the commercial operation of Meilan Airport to a new level, creating a one-stop commercial consumer center that showcases the image of Hainan Free Trade Port, and achieve mutually beneficial results.