According to the notice of assistance in execution, it was learned that the company's controlling shareholder, Kunming DCI Investment Co., Ltd., has had its shares held by the company frozen. The Xishan District People's Court of Kunming City issued the notice in the Ping An Bank Co., Ltd. Kunming Branch and Kunming DCI Investment and its subsidiary Kunming Drainage Facility Management Co., Ltd. ("Kunming Drainage") notarized debt document dispute. Based on an effective ruling and notice of assistance in execution issued by the Xishan District People's Court, the company was required to assist in freezing the company's 60.95% equity held by Kunming DCI Investment within three years from June 14, 2024 to June 14, 2027.

Notice of Assistance in Execution

As of the date of this announcement, Kunming DCI Investment holds 660 million shares of the company's domestic shares, accounting for 64.16% of the company's total issued share capital.

In addition, the Xishan District People's Court has conducted a judicial auction on the Alibaba judicial auction platform for the 245.52 million shares held by Kunming DCI Investment (about 23.86% of the company's total share capital). The first judicial auction ended without successful bidder on June 7, 2024. The second judicial auction will take place from 10 a.m. on June 23, 2024 to 10 a.m. on June 24, 2024.

The company and Kunming DCI Investment operate independently in terms of assets, business, finance, etc. The sealing and freezing of the company's shares held by Kunming DCI Investment mentioned in the announcement will not affect the normal operation of the company, and will not have a significant impact on the company's main business or continued operation capability. As of the date of this announcement, the company's operation remains normal.