Xiangcai's major shareholder pledges more stock

Xiangcai Co. Ltd. has disclosed that its controlling shareholder's concerted party, Quzhou Xinan Development Co. Ltd., has pledged an additional 8,000,000 shares of the company. This latest pledge, effective October 15, 2025, through Beijing Bank Co. Ltd. Jiaxing Branch, brings Quzhou Xinan Development Co. Ltd.'s total pledged shares to 451,400,000, representing 97.19% of its holdings and 15.79% of the company's total share capital. The purpose of this pledge is for the daily operations of Quzhou Xinan Development Co. Ltd.'s subsidiaries.

Following this transaction, the cumulative pledged shares of the controlling shareholder and its concerted parties now total 1,141,191,893 shares, which accounts for 98.87% of their combined holdings and 39.91% of the company's total share capital. Despite the high pledge ratio, the controlling shareholder, Xinhu Holdings Co. Ltd., maintains strong creditworthiness with available credit lines. It states that the pledge will not impact the company's production, operations, financing, or governance. The company confirms no outstanding debt overdues or defaults.

Xinhu Holdings Co. Ltd. has issued bonds with a balance of 0 yuan and no bonds due for repayment within the next year, indicating a stable financial position. The company also confirmed that there are no major lawsuits or arbitrations related to debt issues involving Xinhu Holdings Co. Ltd.