On July 17th, Gelunhui announced that the company held the 25th meeting of the second board of directors and the 20th meeting of the second supervisory committee on July 17th, 2024, and reviewed and approved the proposal on changing some of the raised capital investment projects. It was agreed to change the raised investment project "high-end hydraulic component expansion and intelligent upgrading project" to "Thailand Rotary Reducer and Hydraulic Product Production Base Construction Project", agree to set up a raised capital account according to the project change, and sign a capital supervision agreement with related banks.
After the project was changed, the implementation subject of the "Thailand Rotary Reducer and Hydraulic Product Production Base Construction Project" was the holding subsidiary CHANGLING (THAILAND) CO., LTD established by the company in Thailand. The original project raised funds (including interest) will be used for the investment of the new project "Thailand Rotary Reducer and Hydraulic Product Production Base Construction Project". To ensure the smooth implementation of the new project, the company will use its own funds to replace the related raised funds that have been invested in the original project.
As of July 10th, 2024, the sum of investment in the "high-end hydraulic component expansion and intelligent upgrading project" was 37.7899 million yuan, mainly used for plant construction. The amount of raised funds involved in this change of investment direction is 86.1884 million yuan, accounting for 9.63% of the company's actual raised funds. The company will invest raised funds according to the project construction progress, and if there is any shortfall, the company will invest its own funds. The change of raised capital investment project does not constitute a related party transaction.