On June 13th, Gelunhui announced that in order to expand the operating scale of its controlling subsidiary Shanghai M&G Stationery Inc (M&G Stationery), and improve its economic benefits and market competitiveness, as well as to construct a long-term incentive mechanism for the future development and governance of M&G Stationery and fully mobilize the enthusiasm of the management team and core employees, M&G Stationery plans to increase capital through public offering. This capital increase plan consists of two parts: 1. M&G Stationery plans to incentive its core staff with a stock-based incentive. The incentive object will participate in the public offering through personal and four holding platforms, subscribing for 707.6355 million yuan of the newly increased registered capital of M&G Stationery with a total of 3,113,596.2 million yuan; 2. The two actual controllers of the company increased capital for M&G Stationery by subscribing for 2,851.20 million yuan of the newly increased registered capital of M&G Stationery with a total of 1,7934.048 million yuan. After the above transaction is completed, the registered capital of M&G Stationery will increase from 4,947.2445 million yuan to 5,940.00 million yuan. The scope of the company's consolidated financial statements has not changed. The company waived its preemptive rights to the public offering of M&G Stationery.