Huayi group's controlling shareholder increases stake, Guohao law firm issues opinion

Shanghai Huayi Holding Group Co., Ltd. has completed its previously announced plan to increase its stake in Shanghai Huayi Group Corporation Limited. The controlling shareholder acquired an additional 20,279,342 shares, bringing its total ownership to 808,799,687 shares, representing 38.10% of the company's total share capital. The total investment for this share increase amounted to CNY 153,873,896.49.

The share increase met the lower end of the targeted investment range, which was between CNY 150 million and CNY 300 million, and did not exceed 2% of the company's total share capital. Guohao Law Firm (Shanghai) confirmed that the acquisition complies with relevant laws and regulations, including those allowing an exemption from issuing a tender offer. This is given that the cumulative increase within 12 months did not exceed 2% while already holding over 30% of shares.

The law firm verified that Shanghai Huayi Holding Group Co., Ltd. is a legally established and existing limited liability company with no disqualifying conditions for acquiring shares in a listed company.