The Board of Directors of Zhejiang New Century Hotel Management Co., Ltd. (the Company) announced that, the Company has established Hangzhou Kaiba Kaiba Commercial Management Co., Ltd. ("Kaiba Kaiba"), being a joint venture management company with Hangzhou Yuanzhen Cultural Creativity Co., Ltd. (the "Yuanzhen Culture"), and Shanghai Yuanka Shiye Co.,Ltd. ("Shanghai Yuanka"). The Company contributed RMB 2.55 million (which will be funded by internal resources), holding 51% equity interest in Kaiba Kaiba, Yuanzhen Culture and Shanghai Yuanka contributed RMB 1.7 million and RMB 0.75 million respectively, correspondingly holding 34% and 15% equity interest. The major scope of services for Kaiba Kaiba is engaging in the "New Century Shengshi" commercial space and other non-residential hotel value-added extension business.