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.