On September 11, Gelunhui released an announcement that on September 11, 2024, the buyer Start Shinning Pte. Ltd (an indirect wholly-owned subsidiary of the company) entered into a purchase agreement with the seller Right Harmony Limited, under which the buyer conditionally agreed to purchase and the seller conditionally agreed to sell the issued shares of the target company Runpeng Holdings Limited, for a price of 0.087 million Hong Kong dollars.

The target company is a limited company registered under the laws of the British Virgin Islands, mainly engaged in investment holding and trading businesses. The target subsidiary is mainly engaged in trading business and has begun to provide iron ore pre-processing and mixing ore processing services for multiple steel mills.

The board of directors believes that the acquisition of mixed ore business operated by the target subsidiary brings multiple strategic advantages to the company, not only contributing to diversification and reducing reliance on single commodities such as iron ore, but also reducing risks associated with market fluctuations. The customer base and sales network of the mixed ore business also help to increase market share. In addition, the mixed ore business usually involves various types of mineral processing, and its profitability can be enhanced with the increase of profit margin.

The acquisition will also promote resource integration, improve operational efficiency, and reduce costs through transportation and storage synergy effects. In addition, the board of directors believes that this strategic deployment may help stabilize income sources during iron ore price fluctuations, while catering to the increasing demand for mixed ore. Finally, the company is confident in seizing new market opportunities and strengthening its competitive advantages.