Offcn Education shareholder’s equity frozen amid debt disputes

Offcn Education Technology Co., Ltd. announced that shares held by its shareholder, Lu Zhongfang, have been judicially frozen. A total of 22,443,894 shares, representing 18.01% of Lu Zhongfang’s holdings and 0.36% of the company's total share capital, were frozen, effective September 19, 2025, through September 19, 2028. This action resulted from a debt transfer contract dispute for ¥67.0441 million, initiated by the Qinghai Provincial Mutual Aid Tu Autonomous County People's Court for property preservation.

As of the announcement date, Lu Zhongfang and her concerted parties' cumulative pledged shares amount to 690,927,945 shares, or 63.30% of their total holdings and 11.20% of the company's total share capital. Additionally, 725,464,485 shares, representing 66.46% of their total holdings and 11.76% of the company's total share capital, are judicially frozen or marked.

The company's controlling shareholder and concerted parties acknowledge high debt burdens and strained cash flow, with potential risks to company control if debts cannot be repaid from assets beyond the company's shares. They are actively working to resolve pledge and freeze risks. The company affirmed that the judicial freeze will not significantly impact its production, operations, or governance.