Happy to announce: The shares of the controlling shareholder and its concerted actors have been frozen pending further notice.

Announcement from Xilinmen states that recently, the company's controlling shareholder Huayi Intelligent Manufacturing, the actual controller Chen Ayu, and their concerted action person Huahan Investment have had their shares in the company frozen pending further notice. As of the disclosure date of the announcement, the total number of frozen and pending frozen shares held by the three parties is 129,714,634 shares, accounting for 96.87% of their total holdings and 35.22% of the company's total share capital. The parties involved are facing multiple lawsuits over debt issues, involving an amount exceeding 1.5 billion RMB, with none of the cases having gone to trial yet. The controlling shareholder and their affiliates have been found to have engaged in non-operational use of funds and unauthorized guarantees, and the company has filed lawsuits and applied for asset preservation. If the debts are not repaid in the future, there is a risk that their shares in the company may be disposed of or enforced by the judiciary.