Huilon New Materials: Controlling shareholder intends to transfer 6% of shares through agreement, without affecting actual controlling rights

Huilong New Materials announced that on March 4, the company's controlling shareholder Shen Shunhua signed a "Share Transfer Agreement" with Hangzhou Xingzhen, intending to transfer 7.0182 million shares to the latter through agreement transfer, accounting for 6.00% of the company's total share capital, at a transfer price of 252 million yuan. After this transfer, Shen Shunhua and its concerted parties will reduce their combined shareholding from 53.11% to 47.11%, with Hangzhou Xingzhen becoming a shareholder holding more than 5%. The controlling shareholder and the actual controller will remain unchanged. This matter requires approval from the Shenzhen Stock Exchange and the Shenzhen branch of China Securities Depository and Clearing Corporation Limited for the transfer procedures and has uncertainties.