The board of directors of Zhejiang New Century Hotel Management Co., Ltd. (the Company) announced that, the Company has established a hotel management company with Zhejiang Zheqin Xixi Hotel Co., Ltd. (the "Zheqin Xixi"), a wholly owned subsidiary of Zhejiang Zheqin Group Co., Ltd. (the "Zheqin Group"), Zhejiang Zheqin New Century Hotel Management Co., Ltd. ("Zheqin New Century"). The Company contributed RMB 24.5 million (which will be funded by internal resources), holding 49% equity interest and Zheqin Xixi contributed RMB 25.5 million, holding 51% equity interest in Zheqin New Century. Its business scope includes mainly of hotel management and house leasing services. The establishment of hotel management joint venture will actively promote the cooperation between the Company and Zheqin Group. Zheqin New Century will invest to transform and manage the existing hotel assets of Zheqin Group, and jointly expand other incremental hotel assets. All parties will be committed to cultivating, creating and launching the Zheqin New Century hotel brand, which will promote the Company's hotel business development.