Shenglong Intl announced that on April 20, 2026, its indirect wholly-owned subsidiary, Hangzhou Shenglong Tourism Development Co., Ltd., successfully acquired the land use rights for a recreational and commercial plot. The land, with a total area of approximately 23,278 square meters, is located in the Binhu Unit LA020501-34 of Lin'an District, Hangzhou. On April 24, 2026, the subsidiary signed a transaction confirmation with the Lin'an Branch of the Hangzhou Planning and Natural Resources Bureau for the land acquisition at a cost of RMB 55.92 million. The subsidiary then entered into a land use rights contract with the same bureau on May 6, 2026.
The acquired land will be used for the construction of a hotel and sports facilities. Hangzhou's leisure and tourism industry has undergone rapid transformation, evolving from traditional sightseeing to a leisure vacation destination. As a renowned tourist city in China, Hangzhou is committed to building itself into an internationally significant tourism and leisure center. The city's tourism volume has increased annually, with tourism's value-added contribution to GDP gradually rising.
Specifically, the Lin'an tourism industry zone is developing towards rural cultural tourism and in-depth experiential activities, leveraging its landscape resources to create an "urban backyard" and wellness resort. Lin'an boasts a unique ecological environment and is positioned as a summer retreat and wellness center within the region, attracting visitors from other parts of China. The value-added of the tourism industry maintains rapid growth, playing a significant role in the district's economic development. Therefore, constructing a hotel in Lin'an District is expected to meet the growing accommodation needs of tourists.
Additionally, to give back to the community and benefit residents of Lin'an District, the company will build a large-scale sports complex. The complex will feature various sports facilities to meet the demand for recreational sports activities among local residents. Overall, the group plans to develop a comprehensive recreational and vacation center in the area, combining accommodation and sports facilities. The group believes that investing in this recreational and vacation center will benefit shareholders and aims to optimize opportunities while diversifying investment risks.