Zhejiang New Century Manju Hotel Management Co., Ltd announced that it has entered into capital increase agreement with investors for a private placement of common shares for a gross proceeds of CNY 73,000,000 on December 9, 2019. The transaction will include participation from returning investor Zhejiang New Century Hotel Management Co., Ltd. (SEHK:1158) for CNY 42,016,000, new individual investors Sun Meihong for CNY 20,656,000, Zhang Zaiping for CNY 10,328,000. Post capital increase, the registered capital of the company will increase from CNY 27,000,000 to CNY 100,000,000 and returning investor Zhejiang New Century Hotel Management Co., Ltd. (SEHK:1158) stake will decrease from 100% to 70%, Sun Meihong and Zhang Zaiping will holds 20% and 10% stake in the company respectively. The capital increase will be made by way of cash. The payment is expected to be settled by 31 December, 2020. The transaction has been approved by the board of directors of the returning investor.