ST Sanfang: Controlling shareholder's shares are subject to provisional freezing which may affect stability of company's controlling rights.

*ST Sanfang announced that the company's controlling shareholder Sanfang Lane Group holds 2.967 billion shares of the company, accounting for 73.76% of the total share capital, all of which are pledged and frozen. Recently, the 2.967 billion shares held by it have been successively frozen twice by the People's Court of Binhu District, Wuxi City, Jiangsu Province, with a total frozen amount of 12.05 billion shares, accounting for 406.11% of the total number of shares held by it and 299.56% of the total share capital of the company. Some of the debts of Sanfang Lane Group have defaulted, and related litigation or arbitration disputes are under negotiation. If the above-mentioned shares are disposed of in the future, it may affect the stability of the company's controlling rights.