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

Huayi Brothers Media Corporation

Announcement on the Progress of Judicial Auction of Part of the Company 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 not aware of any false representations, misleading statements, or material omissions.

Special Risk Warning

1. The 40,000,000 shares of Huayi Brothers Media Corporation (hereinafter referred to as the "Company") held by the controlling shareholder and actual controller, Mr. Wang Zhongjun, were publicly auctioned on the JD.com Judicial Auction platform by the Beijing Chaoyang District People's Court from 10:00 on June 22, 2026, to 10:00 on June 23, 2026 (excluding any extensions).

As of now, the aforementioned share auction has been completed. The auction still involves subsequent payment, court ruling, and equity transfer. The final outcome 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 pay attention to investment risks.

1. On May 11, 2026, and June 9, 2026, the Company disclosed the "Notice of Preliminary Judicial Auction of Part of the Company Shares Held by the Controlling Shareholder" (Announcement No.: 2026-035) and the "Announcement on the Progress of Judicial Auction of Part of the Company Shares Held by the Controlling Shareholder" (Announcement No.: 2026-042). The auction of 28,000,000 shares held by the controlling shareholder and actual controller, Mr. Wang Zhongjun, has been completed. The aforementioned share auction still involves subsequent payment, court ruling, and equity transfer. The final outcome 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 pay attention to investment risks.

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

3. As of the disclosure date of this announcement, the Company's controlling shareholder has no non-operational fund occupation or illegal guarantee that infringes upon the interests of the Company. All of the Company's businesses are operating normally, and this judicial auction matter will not have a significant adverse impact on the Company's production and operation, or corporate governance.

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

I. Progress of Share Auction

1. Progress of Share Auction