Notice on the Second Judicial Auction of Shares Held by the Controlling Shareholder

Stock Code: 000020 200020 Stock Name: Shenhua Fa A Shenhua Fa B Number: 2026-24 Shenzhen Zhongheng Huafa Co., Ltd. Announcement Regarding the Second Judicial Auction of Some Shares Held by the Controlling Shareholder The Company and all members of the Board of Directors guarantee the truthfulness, accuracy, and completeness of the contents of this announcement, and that there are no false records, misleading statements, or material omissions.

Special Risk Warning:

The subject of this second judicial auction is 3,189,894 shares of the Company held by its controlling shareholder, Wuhan Zhongheng New Technology Industry Group Co., Ltd. (hereinafter referred to as "Wuhan Zhongheng Group"), representing 2.67% of its shareholding in the Company and 1.13% of the Company's total share capital. 2. The auction is currently in its second public announcement phase. According to relevant regulations, the court has the right to suspend or withdraw the auction before or during its commencement. Subsequent stages may involve bidding (or failure to sell), payment, court rulings, and equity transfer, making the auction outcome uncertain. The company will closely monitor the progress of this auction and fulfill its disclosure obligations in a timely manner. 3. Bidders in the judicial auction shall comply with Article 13, Paragraph 1, and Article 15, Paragraph 1 of the "Interim Measures for the Administration of Share Reduction by Shareholders of Listed Companies," as well as Article 16, Item (3), and Article 15, Paragraph 2 of the "Shenzhen Stock Exchange Guidelines for Self-Regulatory Supervision of Listed Companies No. 18 – Share Reduction by Shareholders, Directors, and Senior Management (Revised in 2025)." The shares auctioned in this judicial auction cannot be traded within 6 months after the transfer of ownership, and bidders cannot reduce their holdings of these shares through centralized bidding or block trading within 6 months.
The judicial auction of some of the company's shares held by Wuhan Zhongheng Group will not affect the stability of the company's control, nor will it affect the company's daily operations and management. 5. The Company will closely monitor the subsequent developments of this matter and fulfill its information disclosure obligations in a timely manner in accordance with laws and regulations. Investors are kindly requested to pay attention to the risks.

I. Basic Information Regarding the Judicial Auction by the Controlling Shareholder

Basic Information On April 29, 2026, the Company disclosed the "Announcement Regarding the Judicial Auction of Some Shares Held by the Controlling Shareholder" (Announcement No. 2026-17). The Shenzhen Intermediate People's Court conducted the first auction on the JD.com Judicial Auction Network Platform from 10:00 AM on May 28, 2026 to 10:00 AM on May 29, 2026, but the shares were not sold.

Recently, the company received an "Auction Notice" issued by the Shenzhen Intermediate People's Court of Guangdong Province. The Shenzhen Intermediate People's Court initiated the execution procedure (2025) Yue 03 Zhi Hui 1181, and plans to conduct a second judicial auction of 3,189,894 shares of "Shenhua Fa A" stock (stock code 000020, unrestricted tradable shares) held by its controlling shareholder, Wuhan Zhongheng New Technology Industry Group Co., Ltd. (hereinafter referred to as "Wuhan Zhongheng Group") (securities account number 0800352607), in five batches through the JD.com online judicial auction platform from 10:00 AM on June 17, 2026 to 10:00 AM on June 18, 2026. The specific details are as follows:

This auction involves the following:

Whether it is a controlling shareholder or the largest shareholder;

The auction involves the following:

Shares held by the controlling ... 640,000 | 0.54% | 0.23% | No | | | Shenzhen Intermediate People's Court | and Wuhan Zhongheng Group |

Full Translation