Xiangcai Shares affiliate pledges more stock, increasing encumbered proportion

Xiangcai Co., Ltd. (Xiangcai Shares) announced that Quzhou Xinan Development Co., Ltd., an affiliate of its controlling shareholder, recently pledged an additional 30,500,000 shares. This transaction brings Quzhou Development's total pledged shares to 332,650,000, representing 71.63% of its holdings and 11.63% of Xiangcai Shares' total capital.

Following this pledge, the cumulative total of pledged shares by the controlling shareholder and its concerted parties amounts to 1,022,441,893 shares. This figure represents 88.58% of their total holdings and 35.76% of Xiangcai Shares' total capital. The pledged shares are for Quzhou Development's general operating needs.

Despite the increased pledges, the controlling shareholder and its concerted parties state they maintain good credit and sufficient repayment capabilities. They also confirm that no shares are currently under forced liquidation and they are prepared to take measures such as early repayment or share buybacks if any risks arise.