Golden Dragon Development's controlling shareholder faces share pledge, release, and auction

Guangdong Golden Dragon Development announced that its controlling shareholder, Dongguan New Century Science and Education Development Co., Ltd. ("New Century Company"), has both released and pledged a significant number of shares. On January 16, 2024, New Century Company released 9.5 million shares, representing 5.40% of its holdings and 1.06% of the company’s total share capital. Concurrently, New Century Company pledged 10 million shares, accounting for 5.68% of its holdings and 1.12% of the company's total share capital, for financing purposes to supplement working capital.

Adding to these movements, New Century Company is also facing a judicial auction of 13.5 million shares, initiated by the Chongqing Fifth Intermediate People's Court due to judicial enforcement. This represents 7.67% of New Century Company's total holdings and 1.51% of Guangdong Golden Dragon Development's total share capital. The auction is scheduled for October 27-28, 2025.

Despite these changes, New Century Company will remain the controlling shareholder with 132.5 million shares, representing 14.79% of the company’s total share capital, and Mr. Yang Zhimao will continue to be the actual controller. The company states that the share pledge and auction will not materially affect its operations or corporate governance, and it will continue to monitor and disclose developments regarding its shareholders' equity.