Hainan Ruizhe: Shareholders' second judicial auction of 15.027 million shares failed to sell.

Hainan Ruizhe announced that on February 14-15, the Qionghai People's Court in Hainan Province conducted the second judicial auction of 15,002,742 shares of the company held by Sanya Daxing Group on the Taobao Judicial Auction Network platform, but it was unsuccessful as no one bid. As of the date of the announcement, Daxing Group held 15,002,742 shares of the company, accounting for 1.31% of the total share capital, and the shares are still under judicial freeze. This unsuccessful auction will not lead to a change in controlling interest, and it will not affect daily operations. However, the controlling shareholder of the company has a high pledge ratio, which may lead to the risk of shares being liquidated or judicially auctioned, and it may impact the stability of controlling interest.