Announcement on Progress of Judicial Auction of Part of Shares Held by Controlling Shareholder

Stock Code: 002072 Stock Abbreviation: Kai Ruide Announcement No.: 2026-L019

Kai Ruide Holdings Co., Ltd.

Announcement on Progress of Judicial Auction of Part of Shares Held by Controlling Shareholder

The Company and the entire Board of Directors guarantee the truthfulness, accuracy, and completeness of the information disclosed herein, and that there are no false records, misleading statements, or material omissions.

Special Risk Warning:

1. 35,454,600 shares of Kai Ruide Holdings Co., Ltd. (hereinafter referred to as the "Company") held by the controlling shareholder and actual controller, Mr. Wang Jian, accounting for 46.54% of his holdings and 9.64% of the Company's total share capital, were judicially auctioned on the JD.com judicial auction platform from 10:00 on May 6, 2026, to 10:00 on May 7, 2026.
2. As of the disclosure date of this announcement, the judicial auction has concluded. 1,000,000 shares were successfully auctioned, accounting for 0.27% of the Company's total share capital. The final transaction of the auctioned shares is subject to the auction confirmation ruling issued by the court. The remaining 34,454,600 shares were not sold, and it is uncertain whether they will be subject to a second judicial auction or other disposal. The successful auction matters still involve subsequent procedures such as payment of the remaining balance, court execution, and equity transfer registration, and their final outcome is uncertain.
3. If the shares successfully auctioned this time are smoothly transferred, Mr. Wang Jian will remain the controlling shareholder and actual controller of the Company. The number of shares he directly holds will change from 70,894,600 shares to 69,894,600 shares, and his shareholding ratio will change from 19.28% to 19.01%. His concerted party, Baocheng Ding Sheng International Trade (Beijing) Co., Ltd., holds 5,280,000 shares, accounting for 1.44%. The total number of shares held by Mr. Wang Jian and his concerted party will change from 76,174,600 shares to 75,174,600 shares, and their shareholding ratio will change from 20.72% to 20.45%. The number of pledged shares held by Mr. Wang Jian is 35,440,000 shares, accounting for 47.14% of the shares held by him and his concerted party.
4. The Company will continue to pay attention to the subsequent developments of the judicial auction of the above shares and fulfill its information disclosure obligations in a timely manner in accordance with relevant regulations.