On June 20, GeLongHui announced that Adult International (01957.HK) had signed an enterprise acquisition intention contract with Beijing Yulongshengshi Biotechnology Co., Ltd. on June 19, 2024, and agreed to acquire 51% equity of Yulongshengshi Biotechnology. The acquisition will be completed within two to three months from the date of the acquisition contract.

Yulongshengshi Biotechnology is a limited company established in China. As of the date of this announcement, Ms. Zhang Xiaonan owns the vast majority of its equity and is the ultimate beneficial owner of Yulongshengshi Biotechnology. Yulongshengshi Biotechnology mainly engages in clinical research and application of cell therapy, including treatment of neurological diseases, diabetes and its complications, cancer, heart disease, and related technologies and consulting services for sub-health repair and anti-aging.

DaRen Group mainly engages in the digitization and e-commerce transformation services of physical businesses in China, covering major cities such as Beijing, Hangzhou, Xiamen, and Guangzhou, as well as local life services and comprehensive medical fields. If the acquisition is realized, the board of directors believes that the acquisition will help DaRen Group expand its business scope and diversify its business portfolio, and may therefore increase the investment return and overall return of shareholders in the long run.