Gelonghui (08173.HK) announcement on June 8thOn 8 June 2022, the Board of Directors approved and submitted the relevant form to Fuwei to enable BTR, an indirect wholly-owned subsidiary of the Company, as the holder and beneficiary of the policy, to withdraw the value from the Life Policy according to the surrender value (after deducting the surrender fee charged by Fuwei). The net proceeds from the withdrawal of value will be used as the general working capital of the Group.

The surrender value is the cash value of the life insurance policy on the date of withdrawal, with reference to the accumulated gross premiums paid, plus accumulated interest earned, less accumulated life policy expenses received and any surrender fees.

As at the date of the announcement, the total surrender value of the life insurance policy was approximately $1.045 million. As the effective date of the extracted value will be agreed by Fuwei and BTR upon proper receipt of all surrender requirements issued by Fuwei, the surrender value at the effective date of the extracted value may be different.