Summary of Conference Call Notes on Huangshan Tourism Company Overview - **Company**: Huangshan Tourism - **Industry**: Hospitality and Tourism Key Points Investment in High-End Hotel Project - The company plans to invest approximately **530 million CNY** (5.3 billion) in the construction of a hotel project located at **No. 12, Binjiang East Road, Huangshan**. The main structure has been completed, and the investment will focus on structural reinforcement, space optimization, interior decoration, and enhancing high-end hotel facilities. The construction period is expected to last **24 months** [1][3]. Location and Strategic Importance - The project is situated in the **core business district** of Huangshan city, adjacent to the **Xin'an River**, making it a scarce riverside property [2][5]. - The site is strategically important as it fills a gap in the company's portfolio for high-end cultural and tourism complexes in the city center [6]. Cost and Financial Implications - The project was acquired at a relatively low cost of approximately **165 million CNY** (1.65 billion) through judicial auction at the end of **2024**, allowing the company to secure an **80,000 square meter** asset in a prime location with the main structure already completed. This results in a low unit cost for the property [6]. - The project is not expected to impact short-term performance, with completion and operational launch projected for **2028**. However, it is anticipated to enhance the company's high-end business offerings in the long term [6]. Additional Hotel Developments - The company is also expanding its hotel portfolio with new projects: 1. **Hot Spring Resort Hotel**: Scheduled to be leased from the controlling shareholder by the end of **2025**, this project will include over **300 rooms** and is located within **1.5 km** of the YUPING cableway and **6 km** from the YUNGU cableway, positioned in a prime scenic area. This project is expected to provide significant profit potential [7]. 2. **Beihai Hotel**: Recently reopened in **September 2025** after a **7-year renovation**, this hotel features approximately **210 rooms** and is positioned as the highest-end "cultural tourism" flagship hotel at the mountain top, projected to generate tens of millions in profit [7]. Market Demand and Future Outlook - The company is focusing on expanding its presence in the hotel sector, particularly in core scenic areas where demand is high, making these projects lucrative opportunities [8].

Core Viewpoint - The company has approved the investment in the Huangshan Binjiang East Road No. 12 hotel project, with an estimated investment of approximately 530 million yuan, to enhance its high-end hotel offerings and align with the tourism development trends in Huangshan [10][12][14]. Group 1: Meeting Details - The company's ninth board of directors held its nineteenth meeting on February 3, 2026, with all 11 directors present, and the meeting complied with relevant regulations [1][4]. - The board unanimously approved the proposal for the investment in the Huangshan Binjiang East Road No. 12 hotel project [1][4]. Group 2: Project Investment Overview - The project involves the construction of a hotel located in a prime area of Huangshan, with a total building area of 79,178.15 square meters, including 55,628.76 square meters above ground and 23,549.39 square meters underground [12][13]. - The investment is expected to enhance the existing hotel structure through comprehensive renovation and quality upgrades, aiming to create a high-end hotel that integrates international brand standards with local cultural elements [12][13]. Group 3: Financial Aspects - The estimated investment amount for the project is approximately 530 million yuan, with funding sourced from the company's own resources [10][12]. - The project is projected to have a static investment payback period of 16.14 years according to the feasibility report [14]. Group 4: Project Timeline and Current Status - The construction period for the project is estimated to be 24 months, excluding preliminary work [13]. - The company has already acquired the hotel under construction through judicial auction and has initiated preliminary design work [14].

Core Viewpoint - Huangshan Tourism (600054.SH) has announced the investment in the construction of a new hotel project to enhance its tourism offerings in response to the evolving transportation landscape in Huangshan City [1] Investment Details - The company will invest approximately 530 million yuan in the Huangshan Binjiang East Road No. 12 hotel project, with the actual investment amount to be confirmed [1] - Funding for the project will be sourced from the company's own funds [1] Strategic Context - The decision to invest in the hotel project aligns with the ongoing development trends in Huangshan City's tourism sector, aiming to diversify the destination's tourism product supply [1]

Group 1 - The company plans to invest approximately 530 million yuan in the construction of the Huangshan Binjiang East Road No. 12 hotel project, with funding sourced from self-raised capital [1] - The project is located in the core area of Huangshan City's central government and business districts, highlighting its significant location advantage [1] - The main content of the project includes structural reinforcement and spatial optimization of the original building, reconstruction of public area flow, and the configuration of approximately 490 guest rooms, all to be implemented according to international brand standards [1] - The construction period for the project is expected to be 24 months [1]