Huatian Hotel Group Co., Ltd. Progress announcement on the transfer of 100% equity interest in its subsidiary Changchun Huatian

Stock code: 000428 Stock abbreviation: Huatian Hotel Announcement number: 2021-097

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.

The Company and all members of the Board of Directors (or all members of the Board of Directors other than Directors XXX and XXX) warrant that the content of the information disclosed is true, accurate and complete, and that there are no false statements, misleading statements or material omissions.

First, the transaction situation overview

Huatian Hotel Group Co., Ltd. (hereinafter referred to as "Huatian Hotel" or the "Company") held the third extraordinary meeting of the 8th Board of Directors in 2021 and the 4th Extraordinary General Meeting of Shareholders in 2021 on August 26, 2021 and September 14, 2021 respectively, and deliberated and passed the "Proposal on the Transfer of 100% Equity of Changchun Huatian Subsidiary". In order to accelerate the asset-light operation of the company's hotel industry and ensure the completion of the company's 2021 annual budget business objectives, the company intends to transfer 100% of the equity of Changchun Huatian Hotel Management Co., Ltd. (hereinafter referred to as "Changchun Huatian"), a wholly-owned subsidiary of the company, through public listing bidding (for details, please refer to the "Announcement on the Transfer of 100% Equity of The Subsidiary Changchun Huatian" issued by the company, Announcement No. 2021-084).

On October 13, 2021, the Company received the "Feedback Letter on the Solicitation of Interested Transferees" issued by the Hunan United Property rights exchange, and the 100% equity of Changchun Huatian failed to solicit the intended transferee during the first listing period (for details, please refer to the "Progress Announcement on the Transfer of 100% Equity of Changchun Huatian, Subsidiary" issued by the Company, Announcement No. 2021-094).

Progress

In order to promote the 100% equity transfer of the subsidiary Changchun Huatian, in accordance with the relevant provisions of the Measures for the Supervision and Administration of State-owned Assets Transactions of Enterprises, the Company will be listed for the second time on the Hunan Provincial United Property Rights Exchange on October 22, 2021, and the listing reserve price will be adjusted to RMB637.48206 million according to the 10% equity appraisal price of Changchun Huatian.

3. Other explanations

The transaction was conducted in accordance with the Measures for the Supervision and Administration of State-owned Assets Transactions of Enterprises by means of public listing and bidding, the transferee and the final transaction price have not yet been determined, and whether the listing transaction can be successful is still uncertain, so there is still uncertainty in this transaction. The company will fulfill the information disclosure obligation in a timely manner according to the progress of the transaction, and please pay attention to the company's announcement and pay attention to the investment risks.

This is hereby announced

Board of Directors of Huatian Hotel Group Co., Ltd

October 22, 2021