On August 7th, GeLongHui.com reported that as the preconditions contained in the convertible bonds distribution agreement (as amended and supplemented by the appendix and the second appendix) have not been fully reached or waived by the deadline of August 7, 2024 (ie, the final deadline of convertible bond distribution), the convertible bond distribution agreement has become invalid and the distribution of convertible bonds will not proceed. The obligations of the distribution agent and the company under the convertible bond distribution agreement will cease and terminate, and the contracting parties to the convertible bond distribution agreement shall not make any claims related to the agreement to other contracting parties (except for any previous violations of any obligations under the convertible bond distribution agreement), and the rights and obligations already incurred by the contracting parties to the convertible bond distribution will not be affected.

The directors believe that the failure of the convertible bond distribution agreement will not have any significant adverse effects on the business operations and financial condition of the group.