Huayi Group's controlling shareholder completes share increase plan

Shanghai Huayi Group announced the completion of its controlling shareholder's share increase plan. Shanghai Huayi Holdings Group Co., Ltd., the controlling shareholder, acquired 20,279,342 shares through centralized bidding on the Shanghai Stock Exchange. The total investment for this increase was 153,873,896.49 yuan, representing 0.96% of the company's total share capital. The initial plan, disclosed on March 18, 2025, aimed for an investment between 150 million yuan and 300 million yuan, not exceeding 2% of the company's total share capital, and was successfully completed within the six-month timeframe ending September 17, 2025.

Prior to this increase, Shanghai Huayi and its concerted parties held 788,520,345 shares, accounting for 37.14% of the total share capital. Following the completion, their combined holdings increased to 808,799,687 shares, representing 38.10% of the total share capital. This transaction is in compliance with relevant laws and regulations, allowing for an exemption from tender offer requirements given the incremental increase of less than 2% within a 12-month period.

According to Grandall Law Firm (Shanghai), the controlling shareholder is eligible to implement the share increase. The increase did not alter the company’s ownership structure to a degree that would disqualify its listing or change the actual controller.