According to the Zhitong Finance App, China Zhuoyin (08039) announced that the company was informed by Profit Way Limited (the “controlling shareholder”), the controlling shareholder of the company and Pan Qijie, the company's controlling shareholder and executive director of the company, that on January 8, 2020, Emperor Securities (Hong Kong) Limited (the “Securities Agent”) based on the margin loan financing letter dated November 10, 2017 and certain related financing documents dated November 10, 2017 and certain related financing documents from the controlling shareholder to the capital amount of HK$90 million and accrued interest owed to the controlling shareholder (including) the controlling shareholder and Pan Qijie issued a writ of summons in the High Court of Hong Kong.

The company was further informed that the controlling shareholder's shares held by the company are held as collateral in securities accounts opened and managed by the securities agent; therefore, the securities agent may take coercive measures against the shares.

Based on the rights disclosure notice submitted by Pan Qijie and his spouse, the controlling shareholder is jointly owned by Pan Qijie and his spouse, accounting for the same proportion. The controlling shareholder advised that it is seeking legal advice on the above matters.