Shoulv Hotel plans to extend the deadline for its 2.09 billion yuan hotel expansion project to the end of 2027, with 84.72% already invested.

Beijing Capital Jianguo Hotel (Group) Co., Ltd. (stock code: 600258, abbreviation: “Capital Jianguo Hotel”) issued an announcement on March 31 stating that the company plans to extend the construction period of the fund-raised investment project “Hotel Expansion and Renovation Upgrade Project” to December 31, 2027. The project’s total investment is RMB 2.09079 billion; by the end of 2025, RMB 1.771 billion had been invested, for an investment progress rate of 84.72%.

The announcement shows that this extension of the implementation period will not change the project’s implementing entity or the intended use of the raised funds, and will not have an impact on the company’s normal production and operations and business development. This matter has been deliberated and approved by the company’s board of directors, and still needs to be submitted to the company’s shareholders’ meeting for review.

Basic Information on Raised Funds

Capital Jianguo Hotel completed a non-public issuance of shares in November 2021. The actual net proceeds from the raised funds were RMB 2.99079 billion, which were used for two major projects:

As of December 31, 2025, the company had cumulatively used RMB 2.671 billion of the raised funds. Of this amount, RMB 900 million has been fully used to repay loans to financial institutions. The Hotel Expansion and Renovation Upgrade Project has received RMB 1.771 billion in investment, while the remaining unutilized balance of raised funds is RMB 319 million.

Project Delay Situation

The project originally planned a 3-year construction period, with the initial estimate for reaching the planned usable status in April 2024. In the 2023 shareholders’ meeting, it was extended to April 2026; this is the second extension, and it will again be extended to December 31, 2027.

Reasons for Delay and Safeguard Measures

Capital Jianguo Hotel stated that from 2021 to 2022, due to multiple factors such as public health events and an economic downturn, the hotel industry as a whole was hit, which led to delays in the construction progress of the hotel upgrade and renovation project, and some projects were not launched according to the original plan. Even so, with the economy continuing to recover steadily, the overall hotel industry is also recovering, and the company still remains optimistic about development opportunities in the industry.

From 2023 to 2025, the number of new stores opened by the company was 1,203, 1,353, and 1,510, respectively. At the end of each period, the number of hotels reached 6,203, 7,002, and 7,802, respectively, showing year-on-year growth.

To ensure that the project can be completed on schedule after the extension, the company has制定 three safeguard measures: (1) strengthen project implementation progress management and establish a tracking-and-follow-up mechanism; (2) accelerate the pace of opening new stores and hotel upgrade and renovation, and advance the progress of utilizing the raised funds; (3) strengthen learning of regulatory policies to ensure that the use of raised funds is lawful and effective.

Board of Directors and Sponsor’s Opinions

The company’s 9th session of the board of directors, 15th meeting, has deliberated and approved this extension proposal, and the sponsor has also issued a clear opinion of approval. The sponsor believes that this extension of the construction period is a necessary adjustment based on the project’s actual implementation situation, complies with the company’s development strategy, and there is no situation involving changing the direction of the raised funds, nor any situation that would harm shareholders’ interests.

Capital Jianguo Hotel emphasizes that this extension of the implementation period is a prudent decision made based on the project’s actual progress. The company has not adjusted the project’s total investment amount and construction scale. There is no situation involving changing or indirectly changing the direction of the raised funds, nor any situation that would harm shareholders’ interests.

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Responsible Editor: Xiaolang KuaiBao