Huayi Brothers Media Corp

ST Huayi announced on the evening of September 16 that it has confirmed CMC Capital Co., Ltd. as the restructuring industrial investor in its pre-reorganization case, and signed a Restructuring Investment Agreement and a Supplementary Agreement to the Restructuring Investment Agreement. Under the restructuring investment plan, ST Huayi will use its current total share capital of 2.7745 billion shares as the base, converting 9 new shares for every 10 existing shares, for a total of 2.4971 billion additional shares. After the conversion, total share capital will expand to 5.2716 billion shares. The newly converted shares will not be distributed to existing shareholders and will be used entirely for restructuring purposes. CMC Capital will receive approximately 896 million shares, representing about 17% of the post-restructuring total share capital, at a price of 0.9333 yuan per share, for a total cost of approximately 836 million yuan, with a 36-month lock-up period. Financial investors will receive approximately 1.128 billion shares, representing about 21.4% of the post-restructuring total share capital, with a 12-month lock-up period. The remaining converted shares will be used in part or in full to repay debts from this bankruptcy restructuring. After the restructuring is completed, CMC Capital will become the controlling shareholder of ST Huayi with a 17% stake and obtain control. Of the nine board seats, CMC Capital will nominate four non-independent directors and three independent directors. The equity structure of Huayi Film will not be adjusted, and ST Huayi will continue to hold 100% of Huayi Film after the restructuring. The investment will be paid in four installments. As of September 16, the interim administrator's account has received a registration deposit of 50 million yuan, and all parties have committed to making their best efforts to complete the restructuring plan by December 31, 2026.