On December 7, Gelonghui (002161.SZ) announced that in order to seize the digital development opportunities of the cultural tourism industry, meet the capital requirements for the business development of the holding subsidiary Yuanwang Valley (Shanghai) Information Technology Co., Ltd. (“Shanghai Yuanwang Valley”), further strengthen R&D capabilities and market competitiveness, stimulate the enthusiasm of the management team and core employees through equity binding long-term benefits, and promote the common growth and development of core employees and the company, Shanghai Yuanwang Valley plans to implement a capital increase and stock expansion plan. Based on their unanimous optimism about the development prospects of Shanghai Yuanwang Valley, some senior management and core employees of Shanghai Yuanwang Valley intend to increase capital in Shanghai Yuanwang Valley through the subscription and holding of the Yuantou Management Partnership (Limited Partnership) (“Yuantravel Management” for short) partnership shares.

According to the “Asset Evaluation Report”, and after friendly negotiations between all parties to the transaction, Shanghai Yuanwang Valley is now priced at 25.52 million yuan, and Yuanwang Valley has subscribed to Shanghai Yuanwang Valley's registered capital of 66666.67 million yuan with a capital increase of 85.667 million yuan, accounting for 25% of the total share capital of Shanghai Yuanwang Valley after the capital increase. Of this, 66666.67 million yuan was included in the actual capital of Shanghai Yuanwang Valley. The remaining 1.84 million yuan was included in the capital reserve. The company relinquished the priority of this capital increase. After this investment was completed, Shanghai Yuanwang Valley's registered capital was changed from RMB 20 million to 266.6667 million yuan. The company held 52.5% of Shanghai Yuanwang Valley's shares, Yuanwang Management held 25% of Shanghai Yuanwang Valley's shares, and Digital (Ningbo) Cultural Tourism Technology Co., Ltd. (“Digital Tour”) held 22.5% of Shanghai Yuanwang Valley's shares.