On July 12th, GeLongHui announced that due to adjustments in the range of original assets involved in the proposed restructuring, the company has entered into asset purchase agreements with Rizhao Port Group and Yantai Port Group respectively on July 12th, 2024. Accordingly, the company conditionally agreed to acquire the target assets, and pay the consideration by either cash or issuing consideration shares to Rizhao Port Group and Yantai Port Group. The total proposed restructuring consideration is RMB 9,440.3311 million yuan. Each asset purchase agreement is independent of each other. On the same day, the company entered into compensation agreements with Rizhao Port Group and Yantai Port Group respectively, and agreed that Rizhao Port Group and Yantai Port Group will provide performance commitment and compensation for the target assets (if necessary).

In addition to the proposed restructuring, the board of directors has approved the proposed issuance of new A shares to no more than 35 (including 35) specific investors who meet the criteria, in order to raise matching funds. The total amount of matching funds raised shall not exceed RMB 2000 million yuan, which is no more than 100% of the final proposed restructuring consideration (i.e. RMB 9,440.3311 million yuan), and the number of new A shares to be issued shall not exceed 30% of the total issued share capital of the company before the proposed restructuring.

The target assets refer to the 100% equity of the oil company held by Rizhao Port Group, 50.00% equity of Rizhao Shihua, and 53.88% equity of the joint pipeline and 51.00% equity of the Port Source pipeline held by Yantai Port Group.

Before the proposed restructuring, the Group mainly engaged in loading and unloading various types of cargoes such as containers, dry bulk goods and oil, as well as port supporting services. The Qingdao Port operated by the Group is the fourth largest coastal port in the world, an important international trade hub in the western Pacific, and the largest foreign trade port in northern China. Through the proposed restructuring, the high-quality oil terminal assets of Rizhao Port Group and Yantai Port Group will be injected into the Group, and the Group will realize the integrated integration of high-quality oil terminal assets in Shandong Province, and promote the development of the main business in terms of scale, intensification and collaboration.

The proposed restructuring is conducive to enhancing the comprehensive competitiveness of the Group and increasing the enterprise value of the Group. After the completion of the proposed restructuring, the target assets will be injected into the Group, which is conducive to reducing the peer competition between the Group and Shandong Port Group and enhancing the overall business capability of the Group's ports.

Due to the significant adjustments in the proposed restructuring plan, A shares have been suspended from trading since the opening of the market on July 10th, 2024. The company has applied to the Shanghai Stock Exchange to resume the trading of A shares on the Shanghai Stock Exchange starting from the opening of the market on July 15th, 2024.