*ST Sanfang announced that the shares held by its controlling shareholder, Sanfangxiang Group, have been newly subjected to successive freezes. The number of shares frozen this time is 2.967 billion shares, accounting for 100% of its holdings and 73.76% of the company's total equity. The freeze was applied by the Binhu District People's Court of Wuxi City, Jiangsu Province, starting on July 15, 2026, at the request of the Wuxi branches of Industrial Bank and Bank of Communications for assistance in successive freezes. As of the announcement date, Sanfangxiang Group holds 2.967 billion shares of the company, representing 73.76% of total equity. All of these shares have been frozen and are subject to successive freezes, with cumulative successive frozen shares reaching 12.05 billion shares, accounting for 406.11% of its total holdings and 299.56% of the company's total equity. The company stated that Sanfangxiang Group has partially defaulted on debts, has no entity or debt rating, and litigation or arbitration disputes arising from overdue debts are under negotiation. However, there are no instances of harming the company's interests through non-operational capital occupation or irregular guarantees. Due to the high proportion of shares cumulatively frozen by judicial authorities and successive freezes, if subsequent disposal occurs, there may be a risk affecting the stability of the company's control. A same-day announcement also revealed that the company and its subsidiaries within the consolidated reporting scope have 11 undisclosed cumulative litigation cases over the past 12 consecutive months, involving a total amount of 859 million yuan, which has exceeded 10% of the company's most recent audited net assets. As some cases have not yet been heard or are under trial and mediation, the final judgment outcomes remain uncertain, and the impact on the company's current or future profits cannot yet be accurately measured.
Jiangsu Sanfangxiang Industry Co LtdControlling shareholder's shares frozen multiple times, cumulative frozen shares exceed total equity, indicating severe financial distress and risk of control instability.