Gelonghui announced on September 25th that based on the strategic development needs of the company, according to the "matters related to the company's foreign investment", which was examined and approved by the general manager's office meeting on July 28, 2022, the company's strategic development needs. The investment agreement between Haikou Letong Technology Co., Ltd. (hereinafter referred to as "Letong Technology") and Nanchang Industrial (Shenzhen) Co., Ltd. (hereinafter referred to as "Nanwei Industrial (Shenzhen) Co., Ltd.)" signed by Chen Mingfeng and Haikou Letong Technology Co., Ltd. (hereinafter referred to as "Nanfeng Industrial (Shenzhen) Co., Ltd.") It is agreed that Lok Tech will increase the capital of Nantai Industry with its own capital of RMB 50 million.
In order to better implement the needs of the company to promote strategic development, after friendly negotiation between all parties, Lok Tech and Nan Wei Industries intend to terminate the above capital increase. Lotong Technology plans to change the capital increase of 50 million yuan already paid to Nan Tao into the equity transfer of its 20% stake in Jinling Lecai Technology Co., Ltd. (hereinafter referred to as "Jinling Lecai" or "target company"). And re-signed the "agreement on the cash acquisition of equity between Haikou Lezuo Technology Co., Ltd. And Nanfeng Industrial (Shenzhen) Co., Ltd." with Nanfang Industrial Co., Ltd. After the completion of the deal, Lotong Technology will hold a 20 per cent stake in Jinling Lottery.
According to Guangdong Songfu Investment Co., Ltd. (hereinafter referred to as "Songlun Investment"), which is wholly owned by Mr. Wang Zhuangpeng, the controlling shareholder and actual controller of the company, signed on September 25, 2023, Guangdong Songfu Investment Co., Ltd. and Beijing Furong Hi-Tech Co., Ltd., Hu Ke, Zeng Xinbin's Investment Agreement on Beijing Furong Hi-Tech Co., Ltd and Guangdong Songfu Investment Co., Ltd. and Hu Ke's Agreement on Cash purchase of shares in Beijing Furong Hi-Tech Co., Ltd. Matsu Investment intends to acquire 62% of the shares of Beijing Furong Hi-Tech Co., Ltd. (hereinafter referred to as "Furong Hi-Tech") by means of capital increase and transfer of equity, and become the controlling shareholder of Furong Hi-Tech. Furong Hi-Tech is one of the shareholders of Jinling Lottery and owns 30% of Jinling Lottery.