BTG Hotels (Group) Co., Ltd. (SHSE:600258) entered into a framework agreement to acquire 70% stake in Ningbo Nanyuan Group Co., Ltd. from Zhejiang Nanyuan Holding Group Co., Ltd. for CNY 280 million in cash on June 24, 2014. Ningbo Nanyuan Group Co., Ltd.'s assets will not exceed the scope of the following companies, specifically including Ningbo Nanyuan Group Co., Ltd. and Nanyuan Hotel and Store 2 branch companies, Nanyuan Food Co., Ltd. and Jiangdong Branch Company, Nanyuan Washing Co., Ltd. and Yinzhou Branch Company, Nanyuan Investment Development Co., Ltd. (after spin-off) and Universal Store Branch Company, Nanyuan Xinzhi Hotel Management Co., Ltd., Ningbo Yinzhou Nanyuan Wulongtan Resort Hotel Co., Ltd., Ningbo Nanyuan Xincheng Hotel Co., Ltd., Ninghai Nanyuan Hot Spring Villa Co., Ltd., Nanyuan Universal Hotel Management Co., Ltd., Nanyuan Universal Hotel Co., Ltd., Jiaxing Nanyuan Property Co., Ltd. (after spin-off), Ningbo Yinzhou Qingshan Villa Co., Ltd., Ninghai Shenzhen Yuejia Leisure Farm Co., Ltd., Ningbo Yinzhou Yongyuan Restaurant Management Co., Ltd., Beijing Ningbo Hotel (management contractual relationship), a total of 14 corporations, 5 branch companies, 1 management contractual relation company.

Ningbo Nanyuan Group Co., Ltd. will divest four non-hotel asset and business companies including Nanyuan Property Co., Ltd., Nanyuan Exhibition Hotel Co., Ltd., Ningbo Nanyuan Business Hotel Chain Co., Ltd., Taohua Island Toursim Company by way of share transfer, will divest the non-hotel assets and businesses from Ningbo Nanyuan Investment Development Co., Ltd. by way of spin-off and will only retain the assets and liabilities related to Universal Hotel and Xincheng Hotel. By way of share transfer, will make Ningbo Nanyuan Investment Development Co., Ltd. (after spin-off), Ningbo Nanyuan Universal Hotel Co., Ltd., Ningbo Nanyuan Xincheng Hotel Co., Ltd., Ningbo Nanyuan Xinzhi Hotel Operation Co., Ltd., Ningbo Yinzhou Nanyuan Wulongtan Resort Hotel Co., Ltd., Ningbo Yinzhou Qingshan Villa Co., Ltd., Ningbo YInzhou Yongyuan Restaurant Management Co., Ltd. wholly-owned subsidiaries or sub-subsidiaries of Ningbo Nanyuan Group Co., Ltd. Jiaxing Nanyuan Property Co., Ltd. will undergo a spin-off by dividing its assets and liabilities into hotel-type and non-hotel type. The Jiaxing Nanyuan Property Co., Ltd. which owns the assets of Jiaxing Pinghu Hotel after the spin-off will be injected into Ningbo Nanyuan Group Co., Ltd. After that Zhejiang Nanyuan Holding Group Co., Ltd. completes the registration modification procedures, resulting to Zhejiang Nanyuan Holding Group Co., Ltd. having more than 70% stake in Ningbo Nanyuan Group Co., Ltd. Ningbo Nanyuan had total assets of CNY 1.3 billion, total share equity of CNY (380.54) million, revenues of CNY 398.04 million, operating loss of CNY 92.43 million and net loss of CNY 84.53 million for the year ending December 31, 2013.

Board of Directors of BTG Hotels (Group) approved the proposal of signing share transfer framework agreement on June 24, 2014. The signing of the formal agreement in the future is subject to the review of BTG's Directorate. As on November 14, 2014, the transaction is still subject to the State-owned Assets Supervision and Administration Commission of People's Government of Beijing Municipality approval and BTG's shareholders' approval. On November 14, 2014, Zhejiang Nanyuan Holding Group's shareholders approved the transaction. On December 5, 2014, an agreement was signed. The shareholders of BTG Hotels (Group) approved the transaction on December 31, 2014. Zhonglun W&D Law Firm acted as legal advisor, Citic Securities Co., Ltd. acted as financial advisor while Grant Thornton Certified Public acted as accountant for BTG.