Xinji Shaxi Group (HKG:3603) plans to seek shareholder approval for a mandate to bid for a 20-year lease of the land housing its Xinji Hotelex Hospitality Supplies Center in Guangzhou, according to an Oct. 31 Hong Kong bourse filing.

Shares of the firm were up over 5% in Monday's mid-day trade.

The group intends to participate in a public bidding process organized by the Rural Collective Assets Trading Center for the land, currently leased from SVSEC until May 2026.

The proposed lease, if secured, would allow continued operations of the Hotelex Center, the filing said.

Based on an independent valuation, the right-of-use asset under the possible lease is estimated at 840.5 million yuan, it added.

To ensure timely participation, Xinji Shaxi will seek shareholder approval at an extraordinary general meeting to authorize its directors to submit a bid at or above the reserve price, up to a specified maximum limit.