Offcn Education shareholder shares face pre-emptive freezing amid debt issues

Offcn Education Technology Co., Ltd. (Offcn Education) confirmed that controlling shareholder Li Yongxin and his concert parties, including Lu Zhongfang and Wang Zhendong, have a substantial number of shares under judicial freezing and pre-emptive freezing. Li Yongxin’s shares specifically incurred a new pre-emptive freeze of 167,730,988 shares, representing 18.91% of his holdings and 2.72% of the company’s total share capital. Additionally, 16,155,653 of his shares were judicially frozen again. Lu Zhongfang and Wang Zhendong also had 2,557,904 and 250 shares, respectively, judicially frozen.

The controlling shareholder and his concert parties now have a cumulative 911,909,030 shares judicially frozen and marked, accounting for 83.54% of their total holdings and 14.79% of the company's total share capital. Pre-emptive judicial freezing impacts 182,424,246 shares, which is 16.71% of their holdings and 2.96% of the company's total share capital. The total pledged shares stand at 707,083,598, or 64.78% of their holdings.

These actions stem from various debt guarantee disputes and loan agreements, with several cases still ongoing. Offcn Education warns investors of potential risks to the company's control stability given the high proportion of frozen and pledged shares, combined with heavy debt burdens and tight capital chains.