Red Avenue New Materials: Major shareholder unpledges all holdings

Virgin Holdings Limited, an entity acting in concert with Red Avenue New Materials Group’s controlling shareholder, has fully unpledged its 80,162,700 shares (13.01% of total share capital) as of November 13, 2025. This 40,000,000-share release means the controlling shareholder and its acting-in-concert party now hold a combined 375,570,200 shares, representing 60.96% of the company's total share capital, all unpledged. Virgin Holdings Limited currently has no plans to re-pledge these shares.

This comes alongside the company's successful redemption of its "Tongcheng Convertible Bonds" (113621). As of November 13, 2025, RMB 1,550,000 (15,500 bonds) of the convertible bonds remained unredeemed, representing 0.1937% of the total issuance. The redemption payment of RMB 1,572,320.00 (including accrued interest) was distributed on November 14, 2025, and the bonds were delisted on the same day.

The total shares converted to A-shares reached 25,275,474, increasing the company’s total share capital to 616,141,306 shares. This strategic move strengthens the company's capital and reduces its debt-to-asset ratio.