Core Viewpoint - Hong Kong Travel International Investment Co., Ltd. proposes to distribute its tourism real estate business to shareholders, along with a cash alternative and a capital reduction plan, aiming to focus resources on high-growth tourism attractions and optimize its capital structure [1][3]. Group 1: Shareholder Options - Shareholders can choose to receive shares of the newly established company or cash at HKD 0.336 per share [2]. - The cash alternative pricing is based on valuations of comparable companies in the real estate and hotel sectors, considering factors such as price-to-book ratios and discounts to net asset values [2]. Group 2: Strategic Focus Shift - Post-transaction, the company will concentrate on the specialized development of its core tourism attraction business, which has higher profit margins and growth potential [3]. - The Chinese tourism market is expected to grow significantly, with a projected increase of 15% in tourist numbers and 17% in revenue in 2024, continuing into 2025 [3]. - The company plans to reduce its capital from HKD 9.2 billion to HKD 8.5 billion to adjust internal equity and enhance distributable reserves, ensuring sufficient capacity for shareholder returns [3].

Core Viewpoint - Hong Kong Zhonglv (0308.HK) has announced a distribution of its tourism real estate business to shareholders in physical form, with an option for cash compensation [1] Group 1: Distribution Details - The distribution will be implemented on a basis of one share of the private company for each share held [1] - Shareholders opting for cash will receive HKD 0.336 per share, representing approximately 21.96% of the last closing price of HKD 1.53 [1] Group 2: Business Structure Post-Distribution - After the proposed distribution, the private company will no longer be a subsidiary of Hong Kong Zhonglv, and shareholders will hold shares in the private company [1] - The company will continue to operate its retained businesses, which include tourism attractions, travel documentation, hotel operations, and passenger services [1] Group 3: Capital Reduction Proposal - The board has proposed a capital reduction, decreasing the company's capital from HKD 92.22 billion to HKD 7.22 billion by reducing the capital account by HKD 85 billion [1] - The HKD 85 billion generated from the capital reduction will be transferred to retained earnings, which can be used as distributable reserves according to the company's articles of association and regulations [1]