IPO News | Jin Jiang Hotel (600754.SH) to be listed on the Hong Kong stock market, the China Securities Regulatory Commission requires clarification on matters related to the company and domestic subsidiaries obtaining tobacco retail licenses

The Zhitong Finance App learned that on August 29, the China Securities Regulatory Commission announced the “Requirements for Supplementary Materials for Overseas Issuance and Listing Filing (August 22, 2025 to August 28, 2025)”. The China Securities Regulatory Commission issued supplementary material requirements for 10 companies including Jinjiang Hotels. Among them, the Securities Regulatory Commission requested Jinjiang Hotels to explain matters relating to the company and domestic subsidiaries obtaining tobacco retail licenses. According to reports, Jinjiang Hotel (600754.SH) submitted a listing application to the main board of the Hong Kong Stock Exchange on June 29, 2025, with Orient Securities International as the sole sponsor.

The Securities Regulatory Commission requested Jinjiang Hotel to further explain the following matters, and ask lawyers to check and issue clear legal opinions:

1. Further explain whether the company's subsidiaries are prohibited from being issued and listed overseas as stipulated in Article 8 of the “Trial Measures on the Administration of Overseas Issuance and Listing of 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” and explain the situation relating to the company's share capital having shares in China.

3. Status of products such as websites, apps, applets, public accounts, etc. developed and operated by the company and its subsidiaries, the scale of collection and storage of user information, data collection and use, whether there are situations where information or data is provided to third parties and the cross-border flow of information and data, and arrangements or measures for personal information protection and data security before and after listing.

4. Please explain: (1) the circumstances relating to the acquisition of tobacco retail licenses by the company and domestic subsidiaries; (2) the company's domestic subsidiary's value-added telecom business does not violate the foreign investment entry policy; (3) in addition to the above, whether the business scope and actual business operations of the company and domestic subsidiaries involve areas where foreign investment is prohibited or restricted in the “Special Administrative Measures for Foreign Investment Access (Negative List) (2024 Edition)”.

5. Please explain whether the capital raised is invested in accordance with the relevant regulations on overseas investment, and provide a clear basis.

According to the prospectus, as of December 31, 2024, the Jinjiang Hotel had opened 13,416 hotels with 1,290,988 guest rooms. According to Frost & Sullivan, the company is the largest hotel group in China and the world based on the number of hotels already opened; as of the same day, it is also the largest hotel group in China and the second largest in the world based on the number of guest rooms already opened.

The company operates hotels in two business models: owned and leased hotels and franchised and managed hotels. The company effectively expands the hotel network and forms a competitive advantage through an asset-light business model that is highly in line with industry trends. As of December 31, 2024, the number of franchised and managed hotel rooms opened by the company had increased from 1,025,618 on December 31, 2022 to 1,214,788 (accounting for 94.1% of the total number of guest rooms already opened as of the same day), with a compound annual growth rate of 8.8%.