On September 30th, Gilstong Group (02011.HK) announced that on September 30, 2024, Shenzhen Earui (an indirectly wholly-owned subsidiary), original shareholders, and the target company Shenzhen Jialong Industrial Development Co., Ltd. signed a subscription agreement for shares. According to this agreement, Shenzhen Earui conditionally agreed to subscribe to the target company for RMB 9 million, representing 90% of the target company's registered capital post expansion (subject to completion).

The target company has obtained the right to use the parking lot from Pingnan Railroads Company under a lease agreement from January 1, 2023, to December 31, 2023. After the lease expires, the target company has been continuously using the parking lot by paying the agreed rent. The target company has been in discussions with Pingnan Railroads Company to renew the parking lot lease. According to the target company, Pingnan Railroads Company agrees to renew the lease. The target company will confirm the renewal of the lease with Pingnan Railroads Company once the right to continue using the land is approved. As of the date of this announcement, the target company has not encountered or foreseen any significant obstacles to renewing the parking lot lease.

However, there is no guarantee that the lease renewal will be successful. If the right to use the land is renewed but the parking lot lease is not renewed, as the parking lot is used for parking and occupies a small part of Jialong Autos City and the target company's revenue, the management and operation of Jialong Autos City will not be significantly affected. In addition to the parking lot, there are other parking spaces within Jialong Autos City.

To achieve business diversification and expand the group's revenue sources, the group entered into a management agreement in August 2023 to manage and operate Jialong Autos City, located in Nanshan District, Shenzhen, one of the largest autos trading markets in China. Jialong Autos City has car sales showrooms and related facilities, providing car maintenance and after-sales services. Many well-known domestic and foreign brands (including but not limited to Byd Company Limited, Tesla, Maserati, Ford, and Honda) have set up their showrooms, sales offices, and maintenance centers in Jialong Autos City.

Through the management agreement, the group expanded its business to provide stable income and cash flow from property management services, improving the group's financial performance and financial position.