Huayi Brothers: Controlling shareholder Wang Zhongjun's 70 million shares are planned to be auctioned by the court, accounting for 42.89% of his shareholding.

Huayi Brothers Announcement: The company's controlling shareholder and actual controller Wang Zhongjun's 70 million shares of the company's stock are planned to be auctioned by the court, representing 42.89% of his shareholding and 2.52% of the company's total share capital. As of the date of this announcement, the frozen shares held by Wang Zhongjun account for 100% of his holding. The outcome of this judicial auction is uncertain as it is still in the public disclosure stage. If the above-mentioned shares are successfully auctioned, the company's actual controller and its concerted parties will hold a total of 5.74% of the company's total share capital, remaining the largest shareholder of the company.