On August 21st, Gelonhui announced that on August 21, 2024, the company entered into a non-binding memorandum of understanding with the seller. Based on this, the company will acquire and the seller will sell its holding in Shandong Jufutang Biotechnology Co., Ltd (the target company).

Shandong Jufutang Biotechnology Co., Ltd was established in China in 2009. It is a modern comprehensive enterprise integrating specialized breeding, eco-tourism, traditional Chinese medicine healthcare, biotechnology, and healthy retirement. Under the leadership of Chairman Cai Chunzhi, the company's mission is to promote a healthy cultural concept and provide high-quality products. It has been recognized as a national high-tech enterprise, a specialized and new small and medium-sized enterprise in Shandong Province, an innovative small and medium-sized enterprise in Shandong Province, and a gazelle enterprise in Yantai City. The company, rooted in the snake industry, combines traditional health concepts with modern technology, fully leveraging the role of snake medicinal materials in traditional Chinese medicine cancer prevention and treatment. The company has 4 cooperative hospitals, 12 Jufutang national medical clinics, and 52 branch/flagship stores, with business coverage nationwide.

After reaching the acquisition intention, both parties will leverage their strengths in the health and traditional Chinese medicine sector to carry out research and development and production of pharmaceutical products such as snake venom anti-tumor or analgesics. Directors believe that the group is expected to benefit from potential acquisition matters, expanding the group's supplier and customer base and diversifying the group's business portfolio.