Announcement on the Progress of Judicial Auction of Part of the Company's Shares Held by the Controlling Shareholder

Securities Code: 300027 Securities Abbreviation: ST Huayi Announcement No.: 2026-042

Huayi Brothers Media Co., Ltd.

Announcement on the Progress of Judicial Auction of Part of the Company's Shares Held by the Controlling Shareholder

The Company and the Board of Directors guarantee the truthfulness, accuracy, and completeness of the information disclosed, and are free from any false representations, misleading statements, or material omissions.

Special Risk Warning

1. Beijing Second Intermediate People's Court auctioned 28,000,000 shares of Huayi Brothers Media Co., Ltd. (hereinafter referred to as the "Company") held by its controlling shareholder and actual controller, Mr. Wang Zhongjun, on the JD.com judicial auction platform from June 8, 2026, 10:00 to June 9, 2026, 10:00 (excluding extended time).

As of now, the aforementioned share auction has been completed. This auction still involves subsequent payment, court ruling issuance, and equity transfer registration. The final result remains uncertain. The Company will closely monitor the subsequent progress of this matter and urge the information disclosure obligors to fulfill their information disclosure obligations in accordance with relevant laws and regulations. Investors are advised to make decisions cautiously and be aware of investment risks.

1. On May 20, 2026, the Company disclosed the "Announcement on the Progress of Judicial Auction of Part of the Company's Shares Held by the Controlling Shareholder" (Announcement No.: 2026-037), stating that 40,000,000 shares of the Company held by the controlling shareholder and actual controller, Mr. Wang Zhongjun, were intended for judicial auction. This judicial auction matter is still in the public notice phase, and the auction result is subject to a certain degree of uncertainty. The Company will closely monitor the subsequent progress of this matter and fulfill its information disclosure obligations in a timely manner.

2. If the auction of a total of 68,000,000 shares held by the controlling shareholder and actual controller, Mr. Wang Zhongjun, is successful and the transfer is completed, the combined shareholding of the actual controller and his concerted parties will account for 5.41% of the Company's total share capital, and they will remain the largest shareholder of the Company.

3. As of the disclosure date of this announcement, the Company's controlling shareholder has not engaged in non-operational fund occupation, illegal guarantees, or other actions that harm the Company's interests. Currently, the Company's various businesses are operating normally, and this judicial auction matter will not have a significant adverse impact on the Company's production and operation, corporate governance, and other aspects.

4. As of the disclosure date of this announcement, the proportion of shares held by the Company's actual controller that have been frozen exceeds 80% of his total holdings. Investors are advised to pay attention to relevant risks.

I. Progress of Share Auction

1. Progress of the Current Share Auction

28,000,000 shares of the Company held by its controlling shareholder and actual controller, Mr. Wang Zhongjun, were publicly auctioned on the JD.com judicial auction platform from June 8, 2026, 10:00 to June 9, 2026, 10:00 (excluding extended time) by the Beijing Second Intermediate People's Court. According to the "Confirmation of Transaction" disclosed on the JD.com judicial auction platform, the auction results are as follows: