On August 18, Gelonhui announced that Mr. Xu Zhiqun, the acting director and group CEO, was arrested by the Independent Commission Against Corruption (ICAC) on August 15, 2024 for investigation related to offenses including but not limited to the Prevention of Bribery Ordinance (Chapter 201 of the Hong Kong Law) . Mr. Xu has not yet been prosecuted.

According to the information currently available to the board of directors, the board believes that the incident has nothing to do with the group, and the above-mentioned arrest has not had a significant adverse impact on the group's operations. In addition to the disclosed information, the board of directors is not aware of any other undisclosed material information. The company's shares have been suspended from trading on the Hong Kong Stock Exchange since August 16, 2024 (Friday) at 1 pm and has applied to resume trading on August 19, 2024 (Monday) at 9 am.