Conch Material Technology (02560): Major shareholder Linyi Haihong's 39 million domestic shares were judicially frozen

Zhitong Finance App News, Conch Material Technology (02560) issued an announcement. The company recently learned that one of the company's major shareholders, Linyi Haihong New Material Technology Co., Ltd. (Linyi Haihong), holds 39 million domestic shares of the Company (accounting for about 6.73% of the total number of shares issued by the company) has been judicially frozen (frozen). The freeze was enforced by the People's Court of Hedong District of Linyi City. The maximum freeze period is until September 17, 2029.

The board of directors confirmed that, as far as the board of directors knows, the freeze was caused by a civil dispute involving Linyi Haihong and had nothing to do with the company.

As of the date of this announcement, Linyi Haihong directly held 64.6616 million domestic shares and 8.6984 million H shares, accounting for about 12.65% of the total number of issued shares of the Company. Linyi Haihong's non-executive directors Zhao Hongyi, Mr. Chen Jun, and Zhuzhou Hongxin Technology Development Co., Ltd. held approximately 83.66%, 11.41% and 4.93% respectively. Mr. Chen Jun and Zhuzhou Hongxin Technology Development Co., Ltd. are independent third parties of the Company (except for minority shareholders of Linyi Haihong).

The Company believes that the freeze will not have any significant adverse effect on the Group because the freeze has nothing to do with the Company and will not affect the Group's normal business operations, corporate governance and daily management.