Huicheng Environmental sees controlling shareholder stake diluted

Qingdao Huicheng Environmental Technology Group Co., Ltd. announced a passive dilution of its controlling shareholder's stake, impacting Mr. Zhang Xingong and Qingdao Huicheng Xinde Investment Co., Ltd. Their combined shareholding decreased from 34.41% to 33.85%, triggering a 1% integer multiple change. This dilution resulted from the conversion of "Huicheng Convertible Bonds" and the vesting of second-class restricted shares, leading to an increase in the company's total share capital.

The "Huicheng Convertible Bonds" entered their conversion period on January 13, 2022, with a total of 1,089,710 shares converted between October 26, 2024, and November 13, 2025. Additionally, the company processed the vesting of 1,082,200 second-class restricted shares for eligible employees. As a result, the company's total share capital increased from 194,960,253 shares to 198,214,363 shares.

This change is a passive dilution and does not involve any share acquisition or disposal by the shareholders, nor does it affect the company's controlling shareholder or actual controller, maintaining the stability of the company's operations and governance structure.