On November 8, Gelonhui reported that the board of directors of c zenith chem (00362.HK) approved the sale of 90% equity of Heihe Longjiang Chemical Co., Ltd. ("Heihe Longjiang") at the meeting held on November 8, 2024.

As of the date of this announcement, Heihe Longjiang is a subsidiary of the Company holding indirectly 90% equity. It is expected that the Company will no longer hold the equity of Heihe Longjiang and the financial performance of Heihe Longjiang will no longer be consolidated into the Company's financial statements after the completion of the possible sale. As of the date of this announcement, the Company is in discussions with an independent third party regarding the possible sale and is further implementing specific transaction plans.

In recent years, Heihe Longjiang has had poor operational performance, with continuous losses, which has had a significant impact on the Company's overall operational performance. The possible sale is based on the Company's overall operational development needs, in line with the Company's overall business transformation, conducive to the Company's focus on developing new businesses; further enhancing the Company's cash flow, bringing positive effects to the Company's future financial condition and operational results, promoting the Company's long-term stable development, so the possible sale is in the overall interests of the Company and all shareholders.