On January 28, 2026, Lijiang Hotel (a wholly-owned subsidiary of the Company, as the tenant) entered into a lease agreement with Lijiang Duofu (as the landlord), under which Lijiang Duofu agreed to lease the properties to Lijiang Hotel for a term of two years commencing from February 1, 2026 (or such later date on which Lijiang Hotel obtains the necessary permits to commence hotel operations at the properties).

The properties are located in Lijiang, Yunnan Province, China, and include the following: (a) No. 198, Guyou Lane, Qiyi Community, Dayan Street, Gucheng District; (b) No. 198-1, Guyou Lane, Qiyi Street Neighborhood Committee, Dayan Street Office, Gucheng District; (c) No. 198-3, Guyou Lane, Qiyi Street, Gucheng District; (d) No. 198-5, Guyou Lane, Qiyi Street, Gucheng District; (e) No. 198-2, Guyou Lane, Qiyi Community, Dayan Street, Gucheng District; (f) No. 198-7, Guyou Lane, Qiyi Street, Gucheng District.

The Directors believe that entering into the lease agreement is a strategic opportunity to expand the Group's hotel business and capitalize on the growth of Lijiang's dynamic tourism market.

In recent years, Yunnan Province's tourism industry has experienced robust growth, with Lijiang continuing to be a preferred destination for cultural tourism.

The Group will leverage the extensive experience of its management team in hotel operations to enhance service quality, implement rigorous revenue management routines, and improve the overall guest experience.

This approach is designed to strengthen the property's competitive position within Yunnan Province's expanding hotel market.