Hongfa controlling shareholder extends share pledges for over 10m shares

Hongfa Technology Co., Ltd. announced that its controlling shareholder, Hengge Venture Capital Co., Ltd. (Hengge Investment), has extended the pledge period for 10,724,000 shares. This transaction, processed on October 10, 2025, represents 2.69% of Hengge Investment's total holdings and 0.73% of Hongfa Technology's total share capital. Following this extension, Hengge Investment's cumulative pledged shares amount to 69,172,000, accounting for 17.33% of its total holdings and 4.74% of the company's total share capital.

Two tranches of previously pledged shares were extended. An initial 4,000,000 shares, pledged to GF Securities Co., Ltd. on October 16, 2023, and subsequently increased to 6,440,000 shares due to a 2024 equity distribution, had their pledge extended from October 15, 2025, to September 15, 2026. Similarly, 3,060,000 shares pledged on September 23, 2023, which also increased to 4,284,000 shares following the same equity distribution, were extended from October 15, 2025, to September 15, 2026.

Hengge Investment stated that its credit situation is sound, with repayment sources including its own funds, stock dividends, and investment income. The company emphasized that this pledge extension will not affect Hongfa Technology’s operations or governance, and the risk of a change in actual control remains within a controllable range.