On October 25th, Gelonhui announced that on October 25, 2024, the seller (an indirectly wholly-owned subsidiary of the company) and the buyer (an independent third party) entered into the agreement, whereby, according to the terms of the agreement, the seller conditionally agreed to sell to the buyer, and the buyer conditionally agreed to acquire all equity of the target company Jilin Province Guangze Tourism Development Co., Ltd., for a consideration of RMB 1.0.

The target company is a Sino-foreign joint venture company established in China, with Seller A owning 68.98% and Seller B owning 31.02%. The main business of the target company includes tourism news consultation, tourism product research and development, and tourism project management. As of the date of this announcement, the target company holds all the equity of Fusong Wula and Fusong Changbai Mountain, while Fusong Changbai Mountain holds all the equity of Fusong Guangze.

As of the date of this announcement, Fusong Guangze owns a cultural tourism property project in Fusong County, Baishan City, Jilin Province, with a land area of 668,922.67 square meters and a total construction area of 676,497.47 square meters, for residential and commercial (including hotel) purposes.

Based on factors including (1) the bleak prospects of the Fusong property project due to the macroeconomic environment; (2) idle land may be confiscated by the local land bureau; (3) overdue loans and the group's cash and financial situation make it unable to repay; (4) the level of development expenditure needed to complete the Fusong property project, the group's current situation, financial resources, funds, and financing capabilities are insufficient to develop the Fusong property project. The sale provides the group with an opportunity to divest the Fusong property project, thereby reducing the group's debt and financing costs (currently borne by the target group), which will strengthen the financial position and debt financing capabilities of the remaining group in the long run.