On July 23, Gelunhui announced that Rykadan Capital (02288.HK) and RH Seller (Chen Weilun, Wu Meishan) signed an RH Property Company Agreement on July 23, 2024. According to this, the RH Seller has conditionally agreed to sell the RH for sale Shares and RH Seller 1 has conditionally agreed to transfer RH for sale loans, while RH Buyer has conditionally agreed to purchase RH for sale shares and accept the transfer of RH for sale loans without any property burden, with an initial price of HKD 56.084 million, which can be adjusted (if any) according to the terms of the RH Property Company Agreement.

"RH for sale shares" refers to the collectively RH for sale shares 1 and RH for sale shares 2. "RH for sale shares 1" refers to the legal beneficially owned by Chen (ie RH Seller 1) RH Property Company with a face value of USD 1.00 per share, accounting for 50% of the total issued share capital of RH Property Company at the time of RH completion; "RH for sale shares 2" refers to the RH Property Company with a face value of USD 1.00 per share, accounting for 50% of the total issued share capital of RH Property Company at the time of RH completion, legally beneficially owned by Chen Tai (ie RH Seller 2). "RH Property" refers to House No. 53 Songbaijing, Red Mountain Peninsula, 18 Baipen Mountain Road, Hong Kong.

The Board of Directors believes that the acquisition provides the group with an opportunity to expand its investment portfolio. Although the prices of luxury residential properties in Hong Kong have fallen in the past two years due to factors such as high interest rates and uncertain external markets, the group is still optimistic about the prospects of the Hong Kong luxury residential property market.

The board of directors believes that the Hong Kong luxury property market has bottomed out and expects a recovery in the near future, thanks to the expected interest rate cut by the Federal Reserve in the second half of 2024, as well as various policies implemented by the Hong Kong government, such as relaxing the "spicy" measures in the property market and mortgage policies, and introducing new capital investor immigration and high-tier talent admission schemes. Through the acquisition at this particular time, the Group aims to take advantage of the expected market recovery and realize the value of RH Property in the short term (if feasible) to gain profits from potential price appreciation.