CONCH MAT TECH (02560): 39 million domestic shares of major shareholder Linyi Haihong judicially frozen

CONCH MAT TECH (02560) announces that the Company has recently been informed that 39 million domestic shares of the Company (representing approximately 6.73% of the total number of issued shares of the Company) held by Linyi Haihong New Material Technology Co., Ltd. (Linyi Haihong), one of the substantial shareholders of the Company, have been judicially frozen (the Freeze). The Freeze was executed by the Hedong District People's Court of Linyi City. The freezing period shall last until September 17, 2029. The Board confirms that, to the best of its knowledge, the Freeze was caused by a civil dispute involving Linyi Haihong and is unrelated to the Company. As at the date of this announcement, Linyi Haihong directly holds 64,661,600 domestic shares and 8,698,400 H shares, representing approximately 12.65% of the total number of issued shares of the Company. Linyi Haihong is held as to approximately 83.66%, 11.41% and 4.93% by Mr. Zhao Hongyi, a non-executive Director, Mr. Chen Jun and Zhuzhou Hongxin Technology Development Co., Ltd., respectively. Mr. Chen Jun and Zhuzhou Hongxin Technology Development Co., Ltd. are both independent third parties of the Company (except for being minority shareholders of Linyi Haihong). The Company considers that the Freeze will not have any material adverse impact on the Group, as the Freeze is unrelated to the Company and will not affect the normal business operations, corporate governance and daily management of the Group.