On September 2, GLONH announced that its subsidiary, Shanghai Junzheng Logistics Co., Ltd. (referred to as 'Junzheng Logistics'), has signed a total of 10 chemical ship construction contracts and has the option to reserve up to 10 orders for similar ships with COSCO Jinling Dingheng Shipping (Yangzhou) Co., Ltd. and Wuchang Shipbuilding Industry Group Co., Ltd. overseas fully-owned subsidiaries in April and May 2024. Based on the analysis and judgment of the market, in July and August 2024, the company's fully-owned subsidiaries exercised the option for a total of 10 ship orders from the two shipyards mentioned above. As of the date of this announcement, the company's fully-owned subsidiaries have signed a total of 20 chemical ship construction contracts with a carrying capacity of 25.9K deadweight tons and a total investment of no more than 6.4 billion yuan.

Due to the fact that the operating cash flow of Junzheng Logistics itself can only meet the needs of existing capital expenditures, all the funds required to build 20 ships can only be supported by the company or externally by Junzheng Logistics. As a shareholder of Junzheng Logistics, on the one hand, the company has a large demand for funds for the current implementation of the green degradable plastics recycling industry chain project and new energy projects; on the other hand, the company's main product market is depressed due to insufficient domestic demand and weak external demand. If all the funds for shipbuilding in this case are solved by the company's financial support, it will have a significant impact on the company's production and operation. After careful evaluation and calculation, the company can provide maximum assistance to Junzheng Logistics for the construction funds of 13 ships. In order to enable Junzheng Logistics to seize this rare business opportunity, after full communication with the company's shareholder, Wuhai Junzheng Technology Industrial Group Co., Ltd. (referred to as 'Junzheng Technology'), Junzheng Technology has agreed to support the company's business development, undertake 7 of the chemical ship construction contracts signed by the company's overseas subsidiary with COSCO Jinling Dingheng Shipping (Yangzhou) Co., Ltd. (referred to as 'target ships'), and lease the chemical ships to the company's overseas subsidiary through a bareboat charter for 10 years after the completion of the construction of these 7 ships, with rental prices not exceeding 95% of market rent. At the same time, the company's overseas subsidiary has the right to purchase the target ships at a price not exceeding 95% of the market price. Junzheng Technology undertakes to lease the target ships only to the company's overseas subsidiary after their delivery, and the company's overseas subsidiary retains the right to renew the lease and the option to purchase the ships, without generating competition with the company and its subsidiaries due to the ownership of the target ships. This transaction will help the company maximize its business development, complete the strategic layout of the shipping business, and meet the needs and interests of the company and all shareholders.