Shenglong Splendecor International Limited has signed a State-owned Construction Land Use Right Grant Contract to secure a 40-year land use right over a 23,278 sq.m plot in Lin’an District, Hangzhou. The parcel, designated for recreational and commercial use, was won via public tender at a contract price of RMB55.92 million, matching the auction’s floor price.

Payment terms require 50% (RMB27.96 million) to be settled by 6 June 2026 and the balance by 6 May 2027. As of 29 September 2026, the first instalment has been paid. An independent valuer appraised the land at RMB57.60 million, implying a 2.92% discount on acquisition.

Development plans call for an integrated sports and hotel complex with an above-ground gross floor area of 30,261–34,917 sq.m. Key components include: • 15,500–18,500 sq.m of stadium and sports facilities (50–55% of GFA) • 12,000–14,000 sq.m of hotel space (up to 500 rooms) • 1,500–2,000 sq.m of ancillary food, beverage and sports retail areas

Estimated construction cost (excluding land) is RMB150.00–200.00 million, bringing total project investment to RMB206.00–256.00 million. Financing is expected to comprise up to RMB150.00 million in commercial loans, with RMB40.00–50.00 million funded from internal resources. Management projects a gearing ratio of 2.47 post-financing.

The build schedule targets design completion by March 2027, construction start in January 2028, project completion in December 2029 and operations commencing in early 2030.

The transaction qualifies as a major transaction under GEM Listing Rules, but shareholder approval has been obtained by written consent from holders representing 60.82% of issued shares; therefore, no general meeting is required.

Hangzhou Shenglong Tourism Development Co., Ltd., an indirect wholly-owned subsidiary, will hold the land and oversee development. The company cites Hangzhou’s growing leisure tourism and sports demand as strategic drivers for diversification beyond its core decorative printing materials business.