DETAI NEWENERGY (00559) has signed a memorandum of understanding to acquire a hotel in Macau.

DETAI NEWENERGY (00559) announced that on August 21, 2026, the seller, our company (as the buyer), and the target company entered into a memorandum of understanding, whereby the seller intends to sell and our company intends to purchase the sale shares and sale loans for a total consideration of HK$505 million, subject to the terms of the sale and purchase agreement to be entered into by the seller, our company, and the target company. Our company is not obligated to purchase any sale shares and sale loans unless the sale of all sale shares and sale loans is completed simultaneously. It is understood that the target company primarily engages in investment holding. The main business of the target group is operating the hotel, which is its primary asset. The hotel is a four-star establishment in Macau, offering 441 well-equipped and elegantly decorated rooms. The hotel commenced operations in 1997 and underwent a complete renovation in 2005. Through the acquisition of the target group, our group will expand its urban hotel operations in Macau (one of Asia's major tourism hubs) in addition to its hotel business in Niseko, Japan. Furthermore, the integration of the target group is expected to bring about synergies for the enlarged group, such as revenue diversification, cross-promotion, operational enhancements, and resource reallocation. The proposed acquisition provides our group with stable, income-generating assets that have a solid track record of profitability.