Securities Code: 002072 Securities Abbreviation: *ST Kai Rui Announcement No.: 2021-L057 Kai Rui De Holdings Co., Ltd. Announcement on Completion of Judicial Auction Transfer of Shares Held by Former Shareholder Exceeding 5% and Change of Equity The Company and all members of the Board of Directors guarantee the truthfulness, accuracy, and completeness of the information disclosed, and are free from false records, misleading statements, or major omissions. Special Reminder: The 14,487,000 shares held by Zhejiang Fifth Season Industrial Co., Ltd. (holding 8.23% of the shares), a former shareholder of Kai Rui De Holdings Co., Ltd., were successfully auctioned on June 6, 2021. The number of shares auctioned accounts for 8.23% of the company's total share capital. After the auction, the shareholder no longer holds any shares in the company. The auction winner, Zhang Zhendong, has paid the full auction price and completed the transfer registration procedures. Investors are advised to invest rationally and be aware of risks. I. Basic Situation of Judicial Auction The 14,487,000 shares (accounting for 8.23% of the company's total share capital) held by Zhejiang Fifth Season Industrial Co., Ltd. (hereinafter referred to as "Zhejiang Fifth Season"), a former shareholder holding 8.23% of Kai Rui De Holdings Co., Ltd. (hereinafter referred to as "the Company"), were successfully auctioned on June 6, 2021. The auction winner, Zhang Zhendong, has paid the full auction price. For specific details, please refer to the relevant announcement disclosed by the Company on the Juchao Information Network. On June 29, 2021, the Company received a "Letter of Notification" from the administrator of Zhejiang Fifth Season, informing it that the transfer registration procedures for the auctioned shares have been completed. II. Changes in Shareholder Equity Before this change in equity, Zhejiang Fifth Season held 14,487,000 shares of the Company, accounting for 8.23% of the total share capital. The auction winner, Zhang Zhendong, did not hold any shares in the Company. After this change in equity, Zhejiang Fifth Season will no longer hold any shares in the Company. The auction winner, Zhang Zhendong, holds 14,487,000 shares, accounting for 8.23% of the company's total share capital. III. Other Explanations and Risk Warnings
- Zhejiang Fifth Season is not the controlling shareholder or actual controller of the Company and does not actually participate in the Company's production and operation management. The auction of shares will not affect the Company's production and operation and will not lead to any change in the Company's actual control. The Company currently has no controlling shareholder or actual controller. The current largest shareholder of the Company is Mr. Wang Jianxian and his concerted parties, who collectively hold 23,080,900 shares, accounting for 13.1141% of the company's total share capital.
- According to the inquiry on the China Enforcement Information Disclosure Network, the auction winner Zhang Zhendong is not a dishonest judgment debtor.
- The "Simplified Equity Change Report" issued by Zhejiang Fifth Season has been disclosed on the Juchao Information Network (www.cninfo.com.cn) on the same day. The Company has not yet obtained the "Simplified Equity Change Report" from shareholder Mr. Zhang Zhendong. The Company is contacting Mr. Zhang Zhendong and will disclose the "Simplified Equity Change Report" provided by him in a timely manner after obtaining it.
- The designated information disclosure media of the Company are "China Securities Journal," "Securities Times," and Juchao Information Network (www.cninfo.com.cn). All company information is subject to the official announcements disclosed in the designated media. Investors are advised to pay attention to investment risks. IV. Documents for Inspection
- "Letter of Notification" from the Administrator of Zhejiang Fifth Season;
- "Simplified Equity Change Report" (Zhejiang Fifth Season Industrial Co., Ltd.). Hereby announced Board of Directors of Kai Rui De Holdings Co., Ltd. June 30, 2021