Lu Yan Pharmaceuticals (002788.SZ) subsidiary plans to establish two wholly-owned subsidiaries responsible for hotel operation and management.

Zhtng Cijng APP news, Lyn Yyo (002788.SZ) announced that in order to create a medical rehabilitation, health maintenance and other pharmaceutical health industry ecosystem, its subsidiary Lyn Jiwn plans to increase its investment by approximately 600 million RMB in reliance on the headquarters project to invest in and construct 2 hotels with differentiated competitive advantages. With the hotel projects as the basis, it will incubate businesses in the health field such as medical rehabilitation, health maintenance, elderly leisure, sports, cultural tourism, and extend the value chain of health services. To facilitate the future development and management of the hotel projects, Lyn Jiwn intends to establish 2 wholly-owned subsidiaries, hotel management companies responsible for hotel operations and management, with its own funds, and introduce internationally renowned hotel brands (Hilton) and management teams to manage the daily operations of the hotels. The registered capital of the 2 hotel management companies is 10 million RMB and 20 million RMB respectively, with Lyn Jiwn holding 100% of the shares in both companies.