CHINA STAR ENT (00326) major shareholder has sold 81 million shares of the company's stock. The issue of highly concentrated ownership has been resolved.

CHINA STAR ENT(00326) announced that Heung Wah Keung Family Endowment Limited (the controlling shareholder of the company and jointly held by Mr. Xiang Huaqiang and Ms. Chen Mingying (spouse of Mr. Xiang Huaqiang and also Vice Chairman and Executive Director of the company) conducted on-market transactions through the Hong Kong Stock Exchange's trading platform from December 15, 2025 to December 22, 2025, collectively selling 81 million shares of the company. After the share sale, Heung Wah Keung Family Endowment Limited's shareholding in the company decreased from approximately 67.53% to approximately 64.20%. Based on the above situation and taking into account the share sale, the company believes that the issue of highly concentrated shareholding as announced by the Securities Regulatory Commission has been resolved, and the Securities Regulatory Commission's publication of the company's high concentration of shareholding on June 27, 2025 should not be used as the basis for evaluating the company's current shareholding structure.