*ST Sanfang announced that the shares held by its controlling shareholder, Sanfangxiang Group, have been subject to a rolling freeze by the Wuxi Intermediate People's Court in Jiangsu Province. The number of frozen shares is 2.967 billion, representing 100% of its shareholding and 73.76% of the company's total share capital. This rolling freeze was applied for by the Wuxi branch of Bank of Communications. As of the announcement date, Sanfangxiang Group's cumulative rolling frozen shares total approximately 15.018 billion, representing 506.11% of its shareholding and 373.33% of the company's total share capital. Sanfangxiang Group holds 2.967 billion shares of the company, accounting for 73.76% of total share capital. These shares had already been fully pledged and are now all subject to judicial freezes. The company cautioned that Sanfangxiang Group has partially defaulted on its debts, has no issuer rating or debt rating, and is actively negotiating litigation or arbitration disputes arising from overdue issues. However, there is no situation of harming the company's interests through non-operational capital occupation or irregular guarantees. The company stated that the rolling freeze of the above shares has not had a material impact on its governance structure, but the high proportion of Sanfangxiang Group's shares subject to cumulative judicial freezes and rolling freezes may pose a risk to the stability of the company's control if subsequent disposals are involved.
Jiangsu Sanfangxiang Industry Co LtdControlling shareholder's shares frozen due to debt defaults, posing control stability risk.