Zhejiang Sunriver Culture Tourism (600576.SH): Holding subsidiary is expected to pre-purchase the franchise rights of five core tourist resources in Danxia Mountain.

Zhejiang Sunriver Culture Tourism (600576.SH) announced that the management committee of Danxia Mountain in Shaoguan City has released the results of the bidding (transaction) for five concession projects, including the Jinjiang Art Gallery cruise ship, in Danxia Mountain Scenic Area. The company's holding subsidiary, Shaoguan Xiangyuan Danxia Mountain Tourism Co., Ltd. ("Xiangyuan Danxia Mountain Tourism"), has preliminarily acquired the concession rights for five projects in the water tourism and scenic transportation sectors of Danxia Mountain with a bid of RMB 150 million (USD 23.4 million), including the Jinjiang Art Gallery cruise ship, Xianglong Lake ferry, scenic area transportation, water Danxia cruise ship, and Danxia Mountain cableway projects, with a 39-year operating period. The announcement shows that Xiangyuan Danxia Mountain Tourism is a holding subsidiary of the company, with Zhejiang Xiangyuan Kunpeng Cultural Tourism Development Co., Ltd., a wholly-owned subsidiary of the company, holding a 65% stake, and Shaoguan Danxia Mountain Tourism Investment and Operation Co., Ltd. (controlled by the Shaoguan Municipal People's Government State-owned Assets Supervision and Administration Commission) holding a 35% stake. It is reported that Danxia Mountain Scenic Area is a World Natural Heritage Site, a national key scenic area, a national nature reserve, a national geological park, a national 5A-level tourist attraction, one of the first batch of world geological parks, one of the top ten most beautiful forest tourist destinations in Guangdong Province, and one of the leading tourist attractions in Guangdong Province. This transaction will allow the company, through Xiangyuan Danxia Mountain Tourism, to acquire the operating rights for the five core tourism resources in Danxia Mountain Scenic Area, further solidifying the company's presence in the tourism destination layout in southern China.