Securities Code: 300027
Securities Abbreviation: ST Huayi
Announcement No.: 2026-046
Huayi Brothers Media Corporation
Announcement on Completion of Judicial Auction of Part of Controlling Shareholder's Shares, Change in Shareholding Reaching Integer Multiples of 1% and 5%, and Disclosure of Simplified Report on Change in Equity
The Company's actual controllers, Mr. Wang Zhongjun and Mr. Wang Zhonglei, guarantee that the information provided to this Company is true, accurate, and complete, and contains no false records, misleading statements, or major omissions.
The Company and all members of the Board of Directors guarantee that the content of the announcement is consistent with the information provided by the information disclosure obligors.
Special Risk Warning
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Huayi Brothers Media Corporation (hereinafter referred to as the "Company") controlling shareholder and actual controller Mr. Wang Zhongjun's 28,000,000 shares of the Company were publicly auctioned on the JD.com judicial auction platform by the Beijing Second Intermediate People's Court from 10:00 on June 8, 2026, to 10:00 on June 9, 2026 (excluding any extension). As of now, the equity transfer for the aforementioned share auction has been completed. This change in shareholding touches upon integer multiples of 1% and 5%. Mr. Wang Zhongjun's shareholding proportion decreased from 5.88% to 4.87%, and the shareholding proportion of Mr. Wang Zhongjun and his concert party, Mr. Wang Zhonglei, decreased from 7.86% to 6.85%. This change in shareholding will not result in a change of the Company's controlling shareholder or actual controller. The Company will continue to focus on the development of its core business and protect the interests of its shareholders through high-quality development.
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On May 20, 2026, and June 23, 2026, the Company disclosed the "Announcement on the Progress of the Judicial Auction of Part of the Controlling Shareholder's Shares" (Announcement No.: 2026-037) and the "Announcement on the Progress of the Judicial Auction of Part of the Controlling Shareholder's Shares" (Announcement No.: 2026-043). The auction of 40,000,000 shares held by the controlling shareholder and actual controller Mr. Wang Zhongjun has been completed. The auction of these shares still involves aspects such as payment of the remaining balance, issuance of court rulings, and equity transfer, and 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.
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If the aforementioned 40,000,000 shares held by the controlling shareholder and actual controller Mr. Wang Zhongjun are transferred, the combined shareholding of the actual controller and their concert party in the Company will be 5.41% of the total share capital, and they will still be the largest shareholder of the Company.
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As of the disclosure date of this announcement, the Company's controlling shareholder has no instances of non-operational fund occupation, illegal guarantees, or other actions that infringe upon 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 or corporate governance.
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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 their total holdings. Investors are advised to pay attention to related risks.
I. Overview of Share Auction