Danhua Tech's largest shareholder pledges 74% of holdings

Danhua Chemical Technology announced that its controlling shareholder, Inner Mongolia JinRuiHongJi Enterprise Management Limited Liability Company, has pledged 113 million A-shares, representing 74.10% of its holdings. This pledge accounts for 10.82% of Danhua Tech's total share capital. The shares were pledged to Zheshang Bank for Inner Mongolia JinRuiHongJi’s related parties to apply for a bank loan guarantee with assurance. The controlling shareholder, JinRuiHongJi, and Jitie Iron Alloy have the same de facto controller. JinRuiHongJi assured that the current pledge would not lead to a change of company control and that its financial position remains stable with no forced liquidation risk expected.