On September 25, Gelonghui announced that recently received a notice from the controlling shareholder, Jiangxi Zhongjiang Group Co., Ltd. (hereinafter referred to as "Zhongjiang Group"), that based on the business development needs of Zhongjiang Group, it plans to establish Zhongjiang Group (existing company) and Jiangxi Zixing Business Development Co., Ltd. (newly established company, hereinafter referred to as "Zixing Business", the specific name to be finally determined by the Market Supervision and Administration Bureau) through the method of division by preservation.
Before the division, the registered capital of Zhongjiang Group was 130 million yuan, with Kunwu Jiuding Investment Holdings Group Co., Ltd. (hereinafter referred to as "Jiuding Group") contributing 130 million yuan, accounting for 100% of the registered capital. After the division, the registered capital of the existing company Zhongjiang Group changed to 100 million yuan, with Jiuding Group contributing 100 million yuan, accounting for 100% of the registered capital; the registered capital of the newly established company Zixing Business is 30 million yuan, with Jiuding Group contributing 30 million yuan, accounting for 100% of the registered capital. 29.8% equity of the Company will be retained in the existing company Zhongjiang Group, and 21.2% equity will be divested to Zixing Business. After the completion of this division by the controlling shareholder, there is no change in the controlling shareholder and the actual controller of the Company, and the total number of Company shares held by the actual controller through its subsidiary also remains unchanged. This division by preservation will not have a substantive impact on the Company.
