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Qingdao court judicially auctions 15,840,000 Hengshen New Materials shares held by shareholder Qingdao Changsheng: 8,000,000 shares sold, 7,840,000 unsold

Guangdong Hengshen Meida New Materials (000782) announced that the Shinan District People's Court of Qingdao, Shandong publicly auctioned 15,840,000 unrestricted circulating shares (2.31% of the company's total share capital) held by its 5%-or-more shareholder Qingdao Changsheng Riyue New Energy Holdings on the Alibaba judicial auction platform from 10:00 on October 13 to 10:00 on October 14, 2026, due to a debt dispute. Platform results showed 8,000,000 shares (1.17% of total share capital) were successfully bid for a combined 63,760,000 yuan by three bidders, while 7,840,000 shares received no bids and failed to sell; final completion remains subject to the court's auction confirmation ruling, and the unsold shares may still face a second judicial auction. Qingdao Changsheng's entire 63,380,000-share holding (9.23% of the company) has been frozen or auctioned; if the 8,000,000 shares are transferred, its stake would fall to 8.07%. The company stated that Qingdao Changsheng is not its controlling shareholder, that the auction will not change actual control, and that it will not have a material adverse impact on production and operations.