Zhitong Finance App News, Guangshang Culture Holdings (08082) issued an announcement. On May 28, 2024, the Group received a notice from Huaiji Wanfushan Funeral Home Co., Ltd. (an indirect non-wholly-owned subsidiary of the company and a contractual joint venture with Chinese partners) in China, Huaiji County Funeral Home, which indicated that the Chinese partner did not agree to renew the operating rights in Huaiji after the expiration of July 27, 2025. After the Huaiji period expires, the Group must cease operating its cremation and funeral business in China.

For the year ended 31 December 2023, the Group's cremation and funeral business revenue in China was approximately HK$18.3 million, accounting for about 8.18% of the Group's total revenue. The Group's profit from the cremation and funeral business in China was approximately HK$3.5 million. As at 31 December 2023, Huaiji's net asset value was approximately HK$25 million. Therefore, according to the company's management's preliminary assessment after reviewing the Group's financial results for the year ended December 31, 2023, and assuming that there will be no other major changes in the Group's operations, it is expected that no further renewal will result in a significant reduction in the Group's total revenue. However, since Huaiji's recovery after its expiration is limited by (i) Huaiji's financial performance from now until the expiration date; and (ii) severance payments and other payments to be settled after Huaiji expires, the company's management has not yet decided to recover Huaiji after its expiration.