Baotou Huazi industry controlling shareholder pledges significant stake

Baotou Huazi Industry Co., Ltd. announced on December 11, 2025, that its controlling shareholder, Hainan Shengtai Chuangfa Industrial Co., Ltd., has pledged 72,497,015 shares of the company. This transaction accounts for 50.00% of Shengtai Chuangfa's total holdings and 14.95% of Baotou Huazi Industry's total share capital. The pledge period runs from December 16, 2025, to December 15, 2032, with Industrial Bank Co., Ltd. Binzhou Branch acting as the pledgee.

Prior to this pledge, Shengtai Chuangfa held 144,994,030 unrestricted tradable shares, representing 29.90% of the company's total share capital. The purpose of this share pledge is to secure financing for Binzhou Zhongyu Technology Investment Development Co., Ltd. Zhongyu Technology will use the funds for its own operations, with repayment primarily sourced from its daily operating income and self-raised funds.

Shengtai Chuangfa, which holds 55.00% of Zhongyu Technology, maintains good credit and sufficient collateral and repayment capacity. The company emphasizes that this pledge will not negatively impact its main business operations, ongoing viability, or corporate governance, nor will it lead to a change in control. Investors are advised to exercise caution regarding potential investment risks.