East Group's major shareholder's associate fully sells stake in auction

East Group announced that 62,610,000 unrestricted circulating shares, held by Xinping Huimeng New Energy Technology Co., an associate of the company's largest shareholder, Yangzhou Dongfang Group Co., have been successfully auctioned. This represents 2.7267% of the company's total share capital after deducting repurchased shares and 36.2528% of Xinping Huimeng's current holdings. The total transaction value for these shares reached CNY 294,265,900.

The auction, conducted on a judicial platform, concluded its online bidding phase with all shares successfully sold. This transaction is currently in the successful bidding stage and will involve subsequent payment, legal procedures, and share transfer processes. East Group stated it will closely monitor developments and fulfill its information disclosure obligations.

Following the completion of this share transfer, the combined holdings of East Group's largest shareholder and its associates will decrease from 39.9509% to 37.2242% of the total share capital, crossing a 1% threshold for equity changes. The company currently has no controlling shareholder or actual controller, and this auction is not expected to alter the company's actual control. East Group assures that its operational management remains normal and the auction will not have a significant adverse impact on its production and operations.