Zhejiang New Century Hotel Shareholders Approve Privatization

First Acceptance of the H Share Offer Closes on 19 April 2021

HONG KONG SAR - Media OutReach - 14 April 2021 - Zhejiang New Century Hotel Management Co., Ltd. ("Zhejiang New Century Hotel" or the "Company", HKEx stock code: 1158) announced that the Company's H Shareholders have approved the privatization and delisting proposal offered by Kunpeng Asia Limited ("the Offeror"), at the H Share Class Meeting and Extraordinary General Meeting held yesterday. The consideration to acquire all the H Shares of Zhejiang New Century Hotel proposed by Kunpeng Asia Limited is HK$18.15 per share, representing a premium of approximately 24.7% over the H Share closing price on the Last Trading Date (18 January 2021).

For the privatization to become unconditional, the Offeror must receive minimum valid acceptances of 90% of the number of H Shares held by the Independent H Shareholders. As of 13 April 2021, valid acceptances totaled approximately 84.40% of H Shares held by the Independent H Shareholders have been received. The Domestic Share Offer is subject to the H Share Offer being declared unconditional in all respects. The first closing date for acceptances of the H Share Offer is 19 April 2021 (next Monday). If shareholders' H Shares have been lodged with licensed securities dealers, and they intend to accept the H Share Offer, they should instruct their licensed securities dealers to accept the H Share Offer as soon as possible before the closing date.

Pursuant to the Takeovers Code, settlement in cash in respect of acceptances of the H Share Offer will be made within 7 business days of the later of the date on which the H Share Offer has been declared unconditional and the date on which the H Shares are tendered for acceptance of the H Share Offer. For further details on how to accept the Offer, please refer to Appendix I of the Composite Document dated 19 March 2021.

About Zhejiang New Century Hotel Management Co., Ltd. (HKEx stock code: 1158)

Zhejiang New Century Hotel Management Co., Ltd. is one of the leading hotel groups in the PRC and principally engages in the operation and management of mid-scale to upscale hotel chains in the PRC. Since its inception in Hangzhou, Zhejiang Province, in 1988, the Group has established the homegrown, widely recognized "New Century (開元)" brand series that principally target the upscale leisure and business travel markets, offering hospitality services of international standards complemented by local Chinese elements.