CHINA TRAVEL HK (00308) Invests RMB102 Million to Establish Joint Venture for Developing Heidu Mountain Scenic Area in Qinghai, Enhancing Northwest Tourism Circuit

Stock News05-17

CHINA TRAVEL HK (00308) announced that the Group is capitalizing on the recovery of the domestic tourism market by actively deploying new cultural and tourism projects as fresh revenue streams. Following the acquisition of Jilin Songhua Lake International Resort Development Co., Ltd. and China Travel (Beijing) Ice & Snow Sports Development Co., Ltd. completed on October 27, 2025, these entities collectively hosted 1 million visitors during the peak winter season of the 2025/26 period. Driven by the Group's marketing initiatives, visitor numbers increased by approximately 9% year-on-year, contributing about RMB 170 million in revenue and roughly RMB 57 million in operating profit for the Group in the first four months of this fiscal year.

Concurrently, on March 26, 2026, the Group entered into an investment agreement and shareholders' agreement with Mangya Lvtou Tourism Development Co., Ltd. and Mangya Guoqing Tourism Culture Development Co., Ltd. to jointly establish China Travel (Mangya) Tourism Development Co., Ltd. (the Joint Venture). The purpose is to develop the Heidu Mountain Scenic Area located in Qinghai Province and invest in constructing additional tourism experience projects. The Joint Venture has a registered capital of RMB 200 million, with the Group subscribing to a capital contribution of RMB 102 million, representing a 51% equity stake.

The project is planned to feature a unique core product system centered on "geological wonders + deep space exploration" experiences. Strategically situated at a key node of the Qinghai-Gansu Grand Loop, this initiative represents the Group's significant deployment in the Northwest region following the Ningxia Shapotou Scenic Area project. It is expected to help the Group enhance its network of stops along the Northwest tourism circuit, thereby strengthening its market share and influence in the Northwest region.

The Heidu Mountain Scenic Area is currently open to the public. During the May Day Golden Week holiday in 2026 (May 1 to May 5), it received a total of 20,874 visitors. The Group anticipates that the newly invested formats will be completed and commence operations by 2028, which is projected to attract a greater number of tourists.

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