001216SZSE

Notice on Passive Dilution of Shareholding by Major Shareholders Exceeding 5%

Hua Ci Co., Ltd.·

✨ AI Summary

Hunan Hualian Ceramics Co., Ltd. announced a passive dilution of shareholding ratios due to the issuance of 40,091,638 A-shares at RMB 17.46 each, raising approximately RMB 700 million. The controlling shareholder, Liling Zhiyu Industrial Investment Co., Ltd., will see its shareholding decrease from 45.26% to 39.64%. Additionally, Jinzhou Huayin Asset Management Co., Ltd.'s stake will reduce from 9.93% to 8.56%. The new shares will be listed on May 12, 2026.

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Securities Code: 001216 Securities Abbreviation: Huaci Co., Ltd. Announcement No.: 2026-024
Hunan Hualian Ceramics Co., Ltd.

Regarding Shareholding 5% Shareholding Ratio of Major Shareholders Diluted Triggered 1% Integer Multiple Prompt Announcement The Board of Directors of the Company and all directors guarantee that the content of this announcement does not contain any false records , misleading statements

or significant omissions, and bear individual and joint responsibility for the authenticity, accuracy, and completeness of its content.
Special Reminder:

  1. This equity change is due to Hunan Hualian Ceramics Co., Ltd. (hereinafter referred to as "Huaci Co." or "the Company") issuing A-shares to specific targets, and the new shares will be listed on the Shenzhen Stock Exchange on May 12, 2026.

  2. This equity change results in passive dilution of shareholding ratios and does not trigger a tender offer.

  3. The Company's controlling shareholder, Liling Zhiyu Industrial Investment Co., Ltd. (hereinafter referred to as "Zhiyu Investment " ) participated in this issuance . After this equity change , Zhiyu Investment 's shareholding ratio is diluted from 45.26 % to 39.64 % , the Company

controlling shareholder and actual controller remain unchanged.
4. The shareholding ratio of the shareholder holding more than 5% of the Company, Jinzhou Huayin Asset Management Co., Ltd., is diluted from 9.93% to 8.56%.
I. Basic Information on This Equity Change
According to the approval issued by the China Securities Regulatory Commission on February 26, 2026, regarding the registration of Hunan Hualian Ceramics Co., Ltd. issuing shares to specific targets (Zheng Jian Xu Ke [2026] No. 309), the Company will issue 40,091,638 ordinary shares (A-shares) at a par value of RMB 1 per share, with an issue price of RMB 17.46 per share, all subscribed in cash, raising a total of RMB 699,999,999.48. The new shares from this issuance will be listed on the Shenzhen Stock Exchange on May 12, 2026. The total share capital of the Company will increase from 251,866,700 shares to 291,958,338 shares.
The controlling shareholder Zhiyu Investment participates in this issuance. After the completion of this issuance, the number of shares held by the controlling shareholder Zhiyu Investment will increase from 114,000,000 shares to 115,718,213 shares, and the shareholding ratio will be diluted from 45.26% to 39.64%. The shareholder holding more than 5% of the Company, Jinzhou Huayin Asset Management Co., Ltd., did not participate in this subscription, and the number of shares held remains unchanged, with the shareholding ratio diluted from 9.93% to 8.56%.
The specific equity change situation is as follows:

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