LN Holdings(SZ:000524) Zheng Quan Zhi Xing·2025-06-09 12:59Summary of Key Points Core Viewpoint - The company, Guangzhou Lingnan Group Holdings Co., Ltd., is entering into a cooperative management agreement with Guangzhou Tourism Company to manage seven hotels, aiming to leverage its expertise in hotel operations and enhance revenue growth [1][10]. Group 1: Transaction Overview - The cooperative management agreement will cover seven hotels, including New World Hotel and Guangdong Hotel, with a management period from July 1, 2025, to June 30, 2035 [1][10]. - The total basic management service fee over the agreement period is set at CNY 122,655,120 [1][10]. - The transaction is classified as a related party transaction due to the relationship between the companies involved [2][3]. Group 2: Financial and Operational Details - The monthly basic management service fee is CNY 1,022,126 [10][11]. - The expected annual revenue target for the cooperative management is CNY 22,975,000, with additional fees based on performance exceeding this target [10][11]. - The hotels involved have a total operating area of approximately 40,000 square meters [6][9]. Group 3: Company Background - Guangzhou Lingnan Hotel Property Management Co., Ltd. is a wholly-owned subsidiary of the company, specializing in hotel management [6][8]. - Guangzhou Tourism Company, a wholly-owned subsidiary of the company's controlling shareholder, has a stable financial performance, with a reported revenue of CNY 123,059,886.50 and a net profit of CNY 65,230,087.82 for the year 2024 [5][6]. Group 4: Strategic Implications - The partnership aims to enhance the company's control over hotel resources in Guangzhou's core urban area and expand its hotel business revenue [12]. - The cooperative management is expected to improve brand, operational, and service aspects of the hotels involved, positively impacting the company's overall performance [12].