On September 13, Gelonhui announced that the board of directors recently learned that its wholly-owned subsidiary, Hong Kong Hengjia Capital Limited, has received a civil complaint issued by the Fourth Intermediate People's Court of Beijing. The court has accepted the lawsuit filed by Beijing Hengjia against China (as the plaintiff) for capital injection into Hong Kong Hengjia (as the defendant).

According to the complaint, the plaintiff requests the defendant to pay a capital injection amount of $22,610,000, along with related interest and all litigation costs incurred by the defendant in this case.

As of the date of this announcement, Zhongan (another shareholder of Beijing Hengjia) has not fulfilled its $19,390,000 portion under the capital injection, and based on publicly available records as of the date of this announcement, the board of directors also noted that Beijing Hengjia has not taken equivalent legal action against it.

According to the preliminary legal assessment by Chinese legal advisors, the board of directors believes there is a reliable legal basis to handle the claim properly. Currently, the court is scheduled to hear this case on April 15, 2025. Hong Kong Hengjia will closely cooperate with Chinese legal advisors for its own defense and actively take legal action to safeguard the interests of the group.