Gelonghui Co., Ltd. (002277.SZ) announced that in order to expand the Yueyang market and further expand the market share of its main business in Hunan, the two parties signed an “Operation and Lease Contract” with Yueyang Youa International Commercial Plaza Co., Ltd. (“Yueyang Youa Company”) on the basis of voluntariness and equality. The company leases Yueyang Youa International Commercial Plaza (Phase I) owned and operated by Yueyang Youa International Commercial Plaza (Phase I) Card locations, related dedicated public areas, The facilities and equipment and the company's own property are used to operate the Yueyang You'a City Olai Project (hereinafter referred to as “Yueyang Youaolai”). The leased area is 38,337.65 square meters (the area is based on the survey and mapping report data determined by the Yueyang Natural Resources Planning Administration, and the annual rental fee and facility usage fee are calculated based on the final determined area). The rental period is from March 19, 2021 to March 18, 2028. The unit rent is RMB 60 per month/square meter, and the rent is paid monthly.

Since opening in September 2020, Yueyang YouAolai's operations have been at a loss due to increased downward pressure on the domestic economy and insufficient consumer demand, and operations have been suspended on May 31, 2022. During the shutdown period, the company plans to adjust its operations. During this period, the company re-conducted a market survey on the business district and sought partners from various sources. Recently, the main shareholder of Yueyang Youa Company changed. Based on changes in the lessor's situation and in line with actual market conditions, the company finally decided to close the project. Following friendly negotiations between the company and Yueyang Youa Company, it is proposed to terminate the “Operating Lease Contract” early.