On September 10, Gelonghui Co., Ltd. (002430.SZ) announced that the 11th meeting of the 8th board of directors of the company and the 10th meeting of the 8th board of supervisors deliberated and passed the “Proposal on Building a 76700nm3/h Air Separation Unit by a Wholly-owned Subsidiary to Supply Gas to Shandong Lianhong Chemical and Increase Capital for a Wholly-owned Subsidiary”. In order to further implement the company's strategic development plan and accelerate the layout of the gas industry, Tengzhou Hangzhou Oxygen Gas Co., Ltd. (hereinafter referred to as “Tengzhou Hangzhou Oxygen”), a wholly-owned subsidiary of the company, signed an “Industrial Gas Supply Contract” with Lianhong (Shandong) Chemical Co., Ltd. (hereinafter referred to as “Lianhong Chemical”). Tengzhou Hangshi is responsible for investing in the construction of a 76700nm3/h air separation unit to provide Lianhong Chemical with the industrial gas products and services it needs. The contract period is 20 years. In order to ensure the smooth progress of the construction of this project, the company will increase the capital of Tengzhou Hangzhou Oxygen by 150 million yuan with its own capital. After the capital increase is completed, the registered capital of Tengzhou Hangzhou Oxygen will increase from 20 million yuan to 170 million yuan. Tengzhou Hangzhou Oxygen is still a wholly-owned subsidiary of the company.

The company is now using its own capital to increase capital in Tengzhou Hangzhou Oxygen, mainly to meet its project construction and operation development needs. The successful implementation of this project has had a positive impact on the company's further expanding its gas business and improving the competitiveness of its subsidiaries in the Shandong region, and is in line with the company's overall development plan.