On January 15, Ge Longhui Group (00533.HK) issued an announcement regarding the conclusion of an investment agreement. According to this, the company's indirect wholly-owned subsidiary, Jinli Yuandong, conditionally agreed that when the project company, the company's indirect wholly-owned subsidiary, obtains land use rights for the project land, it invests no less than RMB 330 million into the project through the project company. According to the investment agreement, the project can only be realized until the project company successfully obtains land use rights for the project land. If the project company fails to obtain the project land within two years after the date of the investment agreement, the investment agreement will be annulled and invalid. Since the project company did not acquire the project land within two years after the date of the investment agreement due to the Guangzhou Commission's failure to find a plot of land that the Group believes is suitable for carrying out the project, the investment agreement automatically expires on January 13, 2024, and the project will not proceed. As of January 13, 2024, the Group had not incurred any expenditure on the project. According to the investment agreement, all liabilities of the Jinli Far East and Guangzhou Commission under the investment agreement will be terminated and terminated, and no contracting party may file any claim against the other party in relation to the investment agreement.
The lapse of the investment agreement will not have any significant adverse impact on the Group's business, operations and financial position. The Group will continue to seek land to build its own logistics centers and supply chain facilities, and build modern, intelligent and digital warehousing and logistics distribution sites to expand business development space and reduce current expenses for renting logistics centers.