Indicative announcement of Shenzhen Hongtao Group Co., Ltd. on the planning to sell the equity of the second-level holding subsidiary

Stock code: 002325 Stock abbreviation: Hong Tao Shares Announcement number: 2021-066

Bond code: 128013 Bond abbreviation: Hong Tao to bond

The Company and all members of the Board of Directors warrant that the information disclosed is true, accurate and complete and that there are no misrepresentations, misleading statements or material omissions.

Special Note:

1. Shenzhen Hongtao Group Co., Ltd. (hereinafter referred to as the "Company") is planning to sell the equity of Guizhou Hongtao Cultural Tourism Industry Co., Ltd. (hereinafter referred to as "Hongtao Cultural Tourism"), a second-level holding subsidiary. The transaction method, counterparty and transaction price of the above transactions have not yet been determined, and the specific transaction plan needs to be further determined.

2. The transaction is still in the planning stage, and it is expected that the transaction will not constitute a major asset restructuring as stipulated in the Measures for the Administration of Material Asset Restructuring of Listed Companies, and will not involve related party transactions, and the company will perform the necessary approval procedures according to the specific circumstances of the transaction plan.

3. The transaction is still in the planning stage, there is significant uncertainty about whether it can be reached, the company will perform the information disclosure obligation in strict accordance with the relevant laws and regulations according to the progress of the matter, and please pay attention to the investment risks.

First, the basic situation of the transaction is summarized

In order to optimize the asset structure, focus on the main business and help the company's long-term development, the company is planning to sell the equity of Hong Tao Cultural Tourism, a secondary holding subsidiary (the assets of Four Points by Sheraton Liupanshui). The transaction method, counterparty and transaction price have not yet been determined, and the specific transaction plan needs to be further determined.

Second, the basic situation of the target company

Name: Guizhou Hongtao Cultural Tourism Industry Co., Ltd

Type: Other Limited Liability Company

Address: No. 100, Liangdu Avenue, Zhongshan Economic Development Zone (Hongqiao New Area), Liupanshui City, Guizhou Province

Legal representative: Wang Quanguo

Registered capital: 10 million yuan

Business scope: prohibited by laws, regulations, or decisions of the State Council shall not operate; where laws, regulations, or decisions of the State Council stipulate that permission (approval) shall be permitted, the business shall be carried out on the basis of the licensing (approval) documents after approval by the examination and approval organ; Where laws, regulations, or decisions of the State Council provide that no license (approval) is required, market entities independently choose to operate. (Hotel industry and management and related consulting services, catering management, conference management, business services, tourism resource development and management, tourism commodity development and sales; accommodation, catering, entertainment, swimming pool, beauty salon, gym, bar, business club, café; health cleaning, ticketing agency, club service, labor service, ceremonial celebration service, parking service, property service, housing leasing, massage health care service; corporate image planning, design, corporate marketing planning, exhibition display, typing and copying.) Sales: hotel supplies, utensils, daily necessities, tobacco and alcohol, craft gifts. ）。

Shareholder structure: Shenzhen Qianhai Herong Factoring Co., Ltd., a wholly-owned subsidiary of the Company, holds 55% of the equity of Hongtao Cultural Travel, and the natural person shareholders Qian Fang, Xie Liang and Sun Zhonggeng hold 16.20%, 15.30% and 13.50% of the equity respectively.

Key Financial Data: As of December 31, 2020, Hongtao Cultural Tourism's total audited assets were 33,067.46

10,000 yuan, total liabilities of 81.5749 million yuan, net assets of 249.0997 million yuan, asset-liability ratio of 24.67%.

The main asset of Guizhou Cultural Tourism is Four Points by Sheraton Liupanshui, and after the establishment of Guizhou Hongtao Cultural Tourism, it signed a delegated management agreement (design review agreement, operation service agreement, co-ordination service agreement, system license agreement) with Starwood Hotel & Resort Management Group, a subsidiary of Marriott International, in May 2017, authorizing the "Four Points by Sheraton" brand (exclusive use in Liupanshui area) and managed by Marriott International.

On July 22, 2018, after a year of renovation and preparation, Four Points by Sheraton Liupanshui was officially opened, becoming the most high-end international five-star standard hotel in Liupanshui.

Third, the impact of the sale of assets

The planned sale of assets will help revitalize the company's existing assets, increase cash flow, and help optimize the asset structure. If the transaction can be successfully completed, it will have a certain impact on the company's total assets, net assets, net profit, etc., and the specific data is subject to the regular report disclosed by the company, please pay attention to the investment risks.

The planned sale of assets is in the overall interests of the company and its shareholders, and there is no harm to the interests of the company and other shareholders, especially small and medium-sized shareholders.

4. Risk warning

At present, the matter is still in the planning stage, there are major uncertainties, the company will be based on the progress of the matter, in strict accordance with the provisions of relevant laws and regulations to fulfill the obligation of information disclosure, please the majority of investors rational investment, pay attention to investment risks.

This is hereby announced.

Shenzhen Hongtao Group Co., Ltd

Board of Directors

October 8, 2021