The board of directors of Wanda Hotel Development Company Limited announced that, on 10 September 2021, the Company received a notice from Sunac China Holdings Limited. According to the Notice, Sunac China has notified the Company that, due to, among others, the impact of COVID-19 pandemic and the adjustment of business strategy of Sunac China, it will terminate the hotel management agreements with the Group for 21 hotels held by Sunac Group and managed by the Group. The 21 Hotels comprise 19 hotels in operation and 2 hotels which are under development and has not commenced operation yet.