On April 5, Gelonghui Group (08607.HK) issued an announcement regarding the sale of approximately 1.07% of the issued share capital of Zhejiang Changxing Rural Commercial Bank Co., Ltd. (“Changxing Rural Commercial Bank”). On March 28, 2024, Changxing Rural Commercial Bank sent a letter to the seller (an indirect wholly-owned subsidiary of the company), informing (among others) that the buyer was not eligible to register as a shareholder of Changxing Rural Commercial Bank due to the relevant rules and regulations of the State Administration of Financial Supervision and Administration. Therefore, on the date of this announcement, although the buyer paid all of the costs to the seller before August 2023, the seller is still a registered shareholder of Changxing Rural Commercial Bank and holds 7.565,800 shares in Changxing Rural Commercial Bank.

After managerial discussions and careful consideration of all matters relating to the sale of shares, the seller and buyer decided not to sell the shares. On April 3, 2024, the seller and the buyer entered into a supplementary agreement to the share transfer agreement. The Board of Directors believes that the termination of the sale of shares will not have any significant adverse impact on the company's business operations and financial situation.