Announcement by Suzhou Jinhongshun Automobile Parts Co., Ltd. Regarding Judicial Sequential Freezing of Shares Held by Controlling Shareholder

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2026-03-18 05:06:43

Stock Code: 603922 Stock Abbreviation: Jinhongshun Announcement No.: 2026-012

Suzhou Jinhongshun Automotive Parts Co., Ltd.

Announcement on the Judicial Freezing of Shares Held by Controlling Shareholder

The company’s board of directors and directors other than Mr. Liu Xu guarantee that the content of this announcement is free from any false records, misleading statements, or major omissions, and bear individual and joint responsibility for its authenticity, accuracy, and completeness.

Important Notice:

● Suzhou Jinhongshun Automotive Parts Co., Ltd. (hereinafter referred to as “the Company”)’s controlling shareholder, Hainan Zhongde Technology Co., Ltd. (hereinafter “Zhongde Technology”), has pledged a total of 8,010,000 shares of the company, which are in default and involved in litigation, accounting for 14.90% of its holdings in the company and 4.47% of the total share capital; additionally, 58,622,080 shares have been judicially frozen, representing 109.08% of its holdings and 32.71% of the total share capital. Investors are advised to be aware of investment risks.

● As of now, Zhongde Technology has a total of 1,501,080 shares judicially frozen, accounting for 2.79% of its holdings and 0.84% of the total share capital; a total of 52,241,000 shares are judicially marked, representing 97.21% of its holdings and 29.15% of the total share capital; and 166,901,524 shares are judicially frozen and under waiting freeze, accounting for 310.56% of its holdings and 93.14% of the total share capital.

● As of now, Zhongde Technology has pledged a total of 52,241,000 shares, representing 97.2069% of its holdings and 29.1523% of the total share capital. For details, see the relevant announcements disclosed on the Shanghai Stock Exchange website (www.sse.com.cn) (Announcement Nos.: 2023-085, 2024-001, 2024-004, 2025-005, 2025-007, 2025-041, 2025-043, 2025-051). The company will continue to monitor the pledge situation and associated risks, and will disclose relevant information in a timely manner as required. Investors are advised to be cautious of investment risks.

● As of now, Zhongde Technology’s pledged shares totaling 8,400,000 have defaulted, accounting for 15.63% of its holdings and 4.69% of the total share capital. If the controlling shareholder cannot settle or reach an agreement promptly, it may lead to further lawsuits against Zhongde Technology, and the pledged shares may be further disposed of. For details, see the announcement on the Shanghai Stock Exchange website (www.sse.com.cn) titled “Jinhongshun’s Notice on Default of Pledged Shares by Controlling Shareholder” (Announcement Nos.: 2025-059, 2026-011). Investors should be aware of the risks.

● Currently, Zhongde Technology’s total pledged shares amount to 52,241,000, representing 97.2069% of its holdings and 29.1523% of the total share capital. For details, see the relevant announcements on the Shanghai Stock Exchange website (www.sse.com.cn) (Announcement Nos.: 2023-085, 2024-001, 2024-004, 2025-005, 2025-007, 2025-041, 2025-043, 2025-051). The company will continue to monitor the pledge situation and risks, and will disclose information timely. Please be cautious of investment risks.

● As of now, Zhongde Technology’s pledged shares total 52,241,000, representing 97.2069% of its holdings and 29.1523% of the total share capital. For details, see the relevant announcements on the Shanghai Stock Exchange website (www.sse.com.cn). The company will keep monitoring the pledge status and risks, and disclose relevant information promptly. Investors are advised to be cautious.

● As of now, Zhongde Technology’s judicial frozen shares total 1,501,080, accounting for 2.79% of its holdings and 0.84% of the total share capital; judicial marked shares total 52,241,000, accounting for 97.21% of its holdings and 29.15% of the total share capital; and 166,901,524 shares are under waiting freeze, representing 310.56% of its holdings and 93.14% of the total share capital.

● During January-March 2024 and 2025, the controlling shareholder Zhongde Technology’s other related parties’ non-operational fund occupation was settled by April 29, 2025, including all owed funds and interest.

● As of now, the company’s production and operation are normal. The 53,742,080 shares held by Zhongde Technology are all pledged, marked, frozen, or under waiting freeze. If these shares are further disposed of by judicial authorities (e.g., auction or sale), it may lead to a change in the company’s actual control, posing risks to control stability. The company will continue to monitor the situation and fulfill disclosure obligations timely. Investors are advised to be cautious.

Recently, the company learned through the China Securities Depository and Clearing Corporation Limited Shanghai Branch system that the shares held by controlling shareholder Zhongde Technology have been under waiting freeze, with details as follows:

Basic situation of this freeze

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Cumulative frozen and marked shares of shareholders

As of the announcement date, Zhongde Technology’s total frozen and marked shares are as follows:

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Note: “Cumulative frozen amount” does not include waiting freeze shares. After this freeze, Zhongde Technology’s total waiting frozen shares amount to 166,901,524, representing 310.56% of its holdings and 93.14% of the total share capital. The total of judicial frozen, marked, and waiting frozen shares is 220,643,604, accounting for 410.56% of its holdings and 123.13% of the total share capital.

Reasons for this freeze
The controlling shareholder Zhongde Technology pledged 1,880,000 shares to Zhu Qi on August 8, 2025, due to funding needs, with the pledge expiring on February 7, 2026. Details are disclosed in the August 9, 2025, announcement “Jinhongshun’s Pledge of Part of Controlling Shareholder’s Shares” (No.: 2025-041). On February 26, 2026, the company disclosed a warning of breach of contract. See “Jinhongshun’s Notice of Breach of Pledge by Controlling Shareholder” (No.: 2026-011).

Since the pledge has expired but the repayment was not made on time, constituting breach, Zhu Qi filed a lawsuit with the Hangzhou Gongshu District People’s Court and applied for waiting freeze of 1,880,000 shares.

The controlling shareholder pledged 2,000,000 and 1,130,000 shares to Jiande Xin’an Microloan Co., Ltd. on August 8, 2025, with the pledge expiring on February 7, 2026. Details are in the same August 9, 2025, announcement. The breach of pledge was disclosed on February 26, 2026. Jiande Xin’an Microloan Co., Ltd. filed a lawsuit with the People’s Court of Jiande City, Zhejiang Province, and applied for waiting freeze of 53,742,080 shares.
The controlling shareholder pledged 3,000,000 shares to Shanghai Changning Public Microloan Co., Ltd. on March 28, 2025, with the pledge expiring on March 28, 2026. Details are in the March 29, 2025, announcement. Since the pledge was not repaid on time, the company filed a lawsuit with the Shanghai Jing’an District People’s Court and applied for waiting freeze of 3,000,000 shares.
Other notes and risk warnings
As of now, Zhongde Technology’s pledged shares totaling 8,010,000 are in default and involved in litigation, representing 14.90% of its holdings and 4.47% of the total share capital; 58,622,080 shares are judicially frozen, representing 109.08% of its holdings and 32.71% of the total share capital. Investors should be cautious.
The pledged shares totaling 8,400,000 have defaulted, representing 15.63% of holdings and 4.69% of total share capital. If the controlling shareholder cannot settle or reach an agreement, further legal actions and disposal may occur. See the relevant announcements on the SSE website. Investors should be cautious.
The total pledged shares are 52,241,000, representing 97.2069% of holdings and 29.1523% of total share capital. See the announcements on the SSE website. The company will monitor risks and disclose information timely.
The judicial frozen shares total 1,501,080, representing 2.79% of holdings and 0.84% of total share capital; judicial marked shares total 52,241,000, representing 97.21% of holdings and 29.15% of total share capital; waiting freeze shares total 166,901,524, representing 310.56% of holdings and 93.14% of total share capital.
From 2024 and January-March 2025, the non-operational funds occupied by other related parties controlled by the controlling shareholder have been repaid or settled as of April 29, 2025.
The company’s production and operation are normal. The pledged and frozen shares may be further disposed of, potentially changing the company’s control, which poses risks to control stability. The company will continue to monitor and disclose information timely. Investors are advised to be cautious.

This announcement is made.

Suzhou Jinhongshun Automotive Parts Co., Ltd. Board of Directors

March 17, 2026

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