Crown International Corporation Limited (Stock Code: 727) is principally engaged in the business of property investment, property development, hotel operations, financial consultancy service and comprehensive healthcare in the PRC. The principal business strategy of the Group is to identify suitable investment opportunities from time to time, dispersing the existing investment portfolio in a diversified way and broadening the decentralized sources of income. The Group also actively attempts to enhance the value of potential investment opportunities for shareholders. The Group currently has the following key property projects in the Greater China Region.

PROPERTY BUSINESS

Weihai City Property Project

In September 2017, the Group completed the acquisition of a hotel development project - Golden Beach No. 1 in Weihai, the PRC.

Golden Beach No. 1 is located at the Golden Beach in Weihai, including three high rise hotel buildings with a total of approximately 195,000 square metres of gross floor area, or over 1,600 hotel suites and 360 car parking spaces.

The Group’s hotel operations comprise approximately 200 hotel suites in the Weihai Property to be managed by a world-renowned American hotel group as hotel manager under the management agreement between the Group and the said hotel group. The hotel is expected to achieve a 5-star standard in accordance with relevant international standards, and target high-end business and leisure travelers.

The Group’s management observed that Weihai has become a popular destination for the retired population in recent years which, coupled with the rapid growth of the tourism sector, has resulted in a consistent influx of migrants and an increased demand for properties. The Group’s management considered such development in Weihai will continue to benefit its hotel industry and local property market. On Year 2018, in light of the above, the Group’s management had decided to resolve that approximately 130,000 square metres of the gross floor area of the Weihai Property shall be renovated and sold as serviced apartments. The Group’s current investment in property development comprises approximately 1,400 serviced apartment units in the Weihai Property to be developed and sold by the Group.

Golden Beach No. 1 construction and renovation works expected such works to be completed in the second half year of 2021. The main building of the Weihai property is expected to stand approximately 150 metres in height, making it a landmark along the Golden Beach in Weihai.

Zhongshan City Property Project

On 31 October 2014, the Group acquired "Daxing Hao Yuan" (formerly known as "Zhongshan Plaza"), a residential and commercial complex located at No. 69, Zhongshan Third Road, Eastern District, Zhongshan, from Sino Oasis Oversea Limited, an independent third party.

"Daxing Hao Yuan" comprises of two blocks of 28-storey residential buildings, with a total of 832 residential and 4 commercial units. The residential buildings have been built on an area of over 19,000 square meters of a four-level retail mall podium and more than 11,172 square meters of two-level basement car parks, which provide over 440 parking spaces. The total construction area is approximately 90,308 square meters, including the up-scale luxury residential units accounted for more than 56,000 square meters. The superstructure were completed after 2013.

The property is held by the Group for investment purposes, such as leasing of shops and commercial units, as well as housing units as serviced apartments. "Daxing Hao Yuan" is located on the northern side of Zhongshan Third Road at its junction with Xingzhong Road, a center area near Lihe Plaza in East District, Zhongshan City. The developments in the area which is with well-developed traffic network and improved infrastructure principally comprises residential, office and other commercial developments with several five-star hotels. Therefore, it is expected that the rental of commercial and residential space in Zhongshan City will be increased continuously. Shiqi District is thus situated in a strategic location for setting up businesses, the property would provide promising prospects to the Group.

Yingkou City Property Project

The Group acquired a property of a three-star hotel in Yingkou City in 2007. The renovation of the property was completed at the end of June 2011 to become a multi-functional commercial building, which is now the "Zhuoyue Building". The Group leased the lower floors of the building to "CTTIC Bank" which commenced operations in July 2011. In April 2012, the Group implemented the lease of all remaining floors. Currently, "Zhuoyue Building" tenants include CITIC Bank and Motel hotel.

"Zhuoyue Building" is located atKunlundajie, Boyuquan, Yingkou City, Liaoning Province,portion of Yingkou Boyuquan Post Hotel. The construction of the building was completed in about 1995 and it has primarily been a 17-storey hotel tower in an area of approximately 9,333 square meters excluding the basement level, single-storey post centre and post office. Its total floor area is approximately 13,852 square meters. The land using rights of the property are held by the Group for commercial service purposes.

Boyuquan district is in the southern area of Yingkou City, namely "Yingkou Economic and Technological Development Zone", a state-level development zone. "Yingkou Port", being one of the top ten ports in China's coastal areas, Boyuquan district has become the fastest growing area, in Northeast China since 1984 in terms of economic and social development. With the location advantages, excellent transportation networks and a strong foundation in the hinterland of the region, Boyuquan district offers good investment environment or business development opportunities. In the past few years, the Group has been maintaining its continuous strong development. By means of its unique geographical conditions and careful planning of its operations, the Group is optimistic about the future development of the property in the region.

Hotel Operations

The Group’s current investments in hotel operations consist of the hotel development in Weihai city, Shandong province, the PRC. The Group’s hotel operations comprise approximately 200 hotel suites in the Weihai Property to be managed by a world-renowned hotel group as hotel manager under the management agreement between the Group and the said hotel group. The hotel is still under construction at the moment.

Financial Consultancy Services

Due to the sustained slowdown in the economy of the PRC, the operation model in the past of provision of financial consultancy services business to the real estate developers in need of financing, had been changed to not only focus on providing financial consultancy services to real estate developers, but also build more financing platforms for other companies.

Comprehensive Healthcare Business

The preparation of a new business segment, the comprehensive healthcare business, was finished in the first half of the year 2019/2020. The comprehensive healthcare business includes provision of services to healthcare business operators, including preliminary planning, research, establishment, staff training and post establishment operation and management. The Group has succeeded in attracting professional teams with extensive experience in these sectors and has comprehensive project resources and customer network. The Group is even better equipped and readily prepared to commence business operations in the second half of the year 2019/2020, which in turn would contribute to the revenue and earnings for the Group. Furthermore, the Group is also proactively identifying potential property projects to modify them into high-end healthcare projects through various methods such as acquisition of property projects or cooperation with property owners. It is also possible to develop healthcare projects through land development by ourselves. When integrated into the capital operations with insurers and financial institutions, the development of the comprehensive healthcare business would gain more strengths. As the domestic aging population problem is worsening, the Group is of the view that the Chinese government is also willing to actively support the relevant industries. The concept of comprehensive healthcare will become an important goal of the Group’s future development.

Corporate Milestone

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16 January 1998 The Company listed on the Main Board of The Stock Exchange of Hong Kong Limited.
June 2005 The Company invested HK$ 110,000,000 in the acquisition of "112 Apartments", the modern serviced apartment in the midtown in Hong Kong Island, to commence the property investment and leasing business.
March 2006 The Company invested RMB 462,000,000 in the acquisition of the North and South Tower of "Changshou Commercial Plaza" in Shanghai Putuo District. Large-scale renovation and upgrading work was carried out to improve the quality of the property.
October 2007 To expand the business network of hotel properties, the Group acquired five hotel properties in China from China Post Group with a total consideration of approximately RMB 120,300,000. The Group has been taking opportunities to purchase properties in various provinces to strengthen its own property portfolio.
December 2007 The Group sold "112 Apartments", Hong Kong serviced apartments for a consideration of HK$ 161,000,00.
January 2008 The Group established a joint venture company on 7th, January 2008, with three well-known real estate developers and administrators, as well as a wholly owned subsidiary of an experienced cruise operator, and participated in the bidding of "Cruise City Hong Kong" project, targeting to a world-class cruise terminal and other related real estate items on the Kai Tak Airport runway.
March 2008 The Group acquired twelve hotel properties in China from China Post Group again, with a total consideration of approximately RMB 175,000,000. The acquisition fulfilled part of the Group's strategy to establish a high-quality economy hotel chain brand.
June 2008 The Group sold "Changshou Commercial Plaza" in Shanghai Putuo District for a consideration of RMB 625,500,000.
June 2010 The Group sold "Garden Hotel (Daying)" in Xincheng District, Daying County, Sichuan Province for a consideration of RMB 22,000,000.
January 2011 The Group sold "Liangzhongshi Post Hotel" as well as the "Sichuan County Post Office Building" and "Yilong County Post Office Building", Sichuan for a consideration of RMB 21,500,000.
June 2011 The Group completed the renovation and refurbishment of "Boyuquan Post Building" in Liaoning Province, Yingkou City, to turn it into a commercial office building. The lower floors of the building were leased to CITIC Bank, which commenced operations in July 2011.
November 2011 The Group sold the hotel properties in Renshou County and Suining City, Sichuan for a consideration of RMB 33,370,000.
October 2012 The Group sold a "Post Hotel (Wafang)" in Liaoning Province for a consideration of RMB 24,040,000.
February 2013 The Group sold a hotel property in Turpan Prefecture, Xinjiang Uyghur, Autonomous Region, for a consideration of RMB 15,100,000.
May 2013 The Group sold a hotel property in Xiangfan City, Hubei for a consideration of RMB 24,900,000.
July 2013 The Group sold a hotel property "U Inns Xi'an", Shaanxi for a consideration of RMB 112,200,000 by means of asset exchange.
December 2013 The Group sold a hotel property in Wuhan City, Hubei for a consideration of RMB 14,100,000.
January 2014 The Group sold a hotel property in Jinggangshan City, Jiangxi for a consideration of RMB 50,000,000.
March 2015 The Group sold the hotel properties in Ninghai County, Zhejiang and in Weifang City, Shandong for a consideration of HK$ 125,000,000.
June 2015 The Group successfully acquired "Daxing Hao Yuan", a residential and commercial complex, comprises of two blocks of 28-storey residential buildings which were built on a four-level retail mall podium and two-level basement car parks, in No. 69, Zhongshan Third Road, Eastern District, Zhongshan City, with a consideration of total cash and stock of HK$ 1,008,000,000. The Group decided to restructure the property by converting it into serviced apartments. A professional hotel management company will be hired to manage the property. The total area of the item is approximately 10,533 square meters, with a total construction area of ​​about 90,308 square meters. The Group will invest about HK$ 250,000,000 for the interior decoration, layout design and installation work in the buildings.
January 2016 The Group recovered the sale interest in U Inns Jing Gang Shan disposed in January 2014.
September 2017 The Group successfully acquired a hotel development project - Golden Beach No. 1 in Weihai City, with a consideration of stock of HK$500,000,000. Golden Beach No. 1 comprises of three high rise hotel buildings with a total of approximately 195,000 squre metres of gross floor area, or over 1,600 hotel suites and 360 car parking spaces. The Group's hotel operations comprise approximately 200 hotel suites in the Weihai Property to be managed by a world-renowned American hotel group as hotel manager under the management agreement between the Group and the said hotel group. Golden Beach No. 1 construction and renovation works expected such works to be completed in or about mid-2020.
April 2018 The Group launched an introductory conference for the hotel development project - Golden Beach No. 1 in Weihai City, which will be managed by the world-renowned Hilton Hotel Group.
December 2018 The Group's Golden Beach No. 1 had the Block A roofed.
Second half year of 2019 The Group launched a new business, namely the comprehensive healthcare planning and management services.