New Stock News | JINJIANG HOTELS plans to list on the Hong Kong Stock Exchange. The China Securities Regulatory Commission requires an explanation of the company's and its domestic subsidiaries' acquisition of tobacco retail licenses and related matters

According to the Zhitong Finance APP, on August 29, the China Securities Regulatory Commission (CSRC) announced the "Supplementary Material Requirements for Overseas Issuance and Listing Filing (August 22, 2025 - August 28, 2025)." The CSRC issued supplementary material requirements for 10 companies, including JINJIANG HOTELS. Among them, the CSRC requested JINJIANG HOTELS to explain the company's and its domestic subsidiaries' acquisition of tobacco retail licenses and related matters. It is reported that JINJIANG HOTELS (600754.SH) submitted its listing application to the Hong Kong Stock Exchange on June 29, 2025, with Dongfang Securities International as the sole sponsor.

The CSRC requested JINJIANG HOTELS to supplement the following matters and asked the lawyers to verify and provide clear legal opinions:

1. Further explain whether the company's subsidiaries fall under the circumstances prohibited from overseas issuance and listing as stipulated in Article 8 of the "Interim Measures for the Administration of Overseas Issuance of Securities and Listing by Domestic Enterprises."

2. Please refer to the relevant provisions of the "Guidelines for the Application of Regulatory Rules - Overseas Issuance and Listing Class No. 2" to explain the situation regarding the state-owned shares in the company's equity.

3. The situation of the company's and its subsidiaries' developed and operated websites, apps, mini-programs, public accounts, etc., the scale of user information collection and storage, data collection and usage, whether there is any provision of information to third parties, cross-border flow of information data, and the arrangements or measures for personal information protection and data security before and after the listing.

4. Please explain: (1) the situation regarding the company's and its domestic subsidiaries' acquisition of tobacco retail licenses; (2) the clear basis that the value-added telecommunications business of the company's domestic subsidiaries does not violate foreign investment access policies; (3) apart from the above, whether the business scope and actual operations of the company and its domestic subsidiaries involve fields prohibited or restricted for foreign investment access as per the "Special Management Measures for Foreign Investment Access (Negative List) (2024 Edition)."

5. Please explain whether the use of raised funds complies with relevant regulations on overseas investment and provide clear evidence.

According to the prospectus, as of December 31, 2024, JINJIANG HOTELS had opened a total of 13,416 hotels, with 1,290,988 guest rooms. According to Frost & Sullivan, based on the number of opened hotels, the company is the largest hotel group in China and globally; as of the same date, based on the number of opened guest rooms, it is also the largest in China and the second largest globally.

The company operates hotels through two business models: owned and leased hotels, and franchised and managed hotels. The company effectively expands its hotel network through a light asset business model that aligns closely with industry trends, forming a competitive advantage. As of December 31, 2024, the number of guest rooms in franchised and managed hotels that have been opened has increased from 1,025,618 rooms as of December 31, 2022, to 1,214,788 rooms (accounting for 94.1% of the total number of opened guest rooms as of the same date), with an annual compound growth rate of 8.8%