Shen Kai Group: Issuing shares to specific individuals resulting in the passive dilution of the shareholdings of senior executives

Shin Kai Group announced that the company issued 26.1283 million shares to specific entities, increasing the total share capital from 364 million shares to 390 million shares after the issuance. As of the disclosure date of the announcement, the company's designated repurchase account held 1.42 million shares, excluding which the total share capital after this issuance was 389 million shares. The company's senior management did not participate in the subscription, and their shareholding remained unchanged before and after the issuance. However, due to the passive dilution caused by the issuance of new shares, the shareholding percentage of Chairman Li Fangying decreased from 7.76% to 7.24%.