On December 17th, Gelonghui announced that Tianjin Realty Development (600322.SH) reported that this equity change resulted from the recent judicial auction of 35,000,000 shares (3.17% of the total share capital) held by the company’s second largest Shareholder, Tianjin Real Estate Group Co., Ltd. (hereinafter referred to as 'Tianjin Real Estate Group'), leading to a decrease in the number of shares. The proportion of the equity change exceeds 1% of the total share capital, but does not trigger a tender offer.

After this equity change, Tianjin State-owned Capital Investment Operation Co., Ltd. (hereinafter referred to as 'Tianjin Investment Capital') has not changed its holding in the company, directly holding 190,186,440 shares, accounting for 17.20% of the total share capital, still being the company’s controlling Shareholder; Tianjin Real Estate Group remains the second largest Shareholder of the company, holding 74,000,000 shares, which is 6.69% of the total share capital. The Tianjin Municipal State-owned Assets Supervision and Administration Commission (hereinafter referred to as 'Tianjin SASAC') holds a total of 264,186,440 shares in the company through Tianjin Investment Capital and Tianjin Real Estate Group, accounting for 23.89% of the company's total share capital, still being the actual controller of the company. This equity change will not result in any change to the company’s controlling Shareholder and actual controller, will not affect the company’s production and operation, and will not lead to a distribution of equity that does not meet the listing conditions.