Announcement on Progress of Significant Matters

Stock Code: 000005 Stock Abbreviation: ST Xingyuan Announcement No.: 2023-062 Shenzhen Century Star Source Co., Ltd Announcement on the progress of major matters The company and all members of the board of directors guarantee that the disclosed information is true, accurate, and complete, without any falsehoods Records, misleading statements, or material omissions. The company and Shenzhen Taihe Ruisi Investment Co., Ltd. (referred to as "Taihe Ruisi") are actually controlled by Shenzhen Hengyu Industrial (Group) Co., Ltd.), jointly developed the Fuhua Factory Urban Renewal Project (hereinafter referred to as referred to as the "Project"), which has entered the pre-sale period. According to the contract, during the construction period (investment management period), the company Each year, you can obtain funding from the project company, Shenzhen Blue Space Creative City Infrastructure Co., Ltd. (referred to as "Blue Space"). Collected 80 million yuan in stable returns. It was discovered that Shenzhen Hengyu Industrial (Group) Co., Ltd. (hereinafter referred to as "Hengyu Group") had been involved since 2020 Since August 5, the urban renewal project of Blue Space has been diverted from the Nanshan Branch of Agricultural Bank of China Co., Ltd resulting in the company owing 35.3143 million yuan (fund occupation fee) to the company since August 5, 2020. and since 2023, the company has been in arrears on the 80 million yuan in preferred share returns payable for 2022, and in 2022, On November 23, a written complaint was filed with the Shenzhen Regulatory Bureau of the China Banking and Insurance Regulatory Commission to pay the company's specialist Circumstances of suspected misappropriation of funds. After investigation, the CBIRC Bureau determined that Blue Space contained 1.5 billion yuan in loan funds The fact that the funds were misappropriated (see the "Risk Warning Announcement on Major Matters" dated May 26, 2023, for