On December 20, Gelonghui announced that TONGRENTANGCM (03613.HK) signed a technical service contract with TONG REN TANG on December 20, 2024. According to this, the company entrusted TONG REN TANG with the process and technical research of important Traditional Chinese Medicine raw materials. The company shall pay TONG REN TANG a total of 5 million Hong Kong dollars in installments for the technical services.
The relevant raw materials are an important part of the Group's production of Traditional Chinese Medicine and products, and their quality plays a crucial role in the Group's production process. Considering TONG REN TANG's capabilities and expertise in Traditional Chinese Medicine manufacturing, the Directors believe that the technical service contract and the related Trade will help meet the Group's future Business needs and further promote the long-term development of the Group's Business through TONG REN TANG's expertise. The relevant technical research will enable the Group to enhance production technology and improve product safety, thereby increasing customer confidence in the Group's products.