ST Wanfang's major shareholder's stock failed to sell at the second judicial auction, raising concerns about a potential change in the company's controlling shareholder.

On September 23, 2025, the Changchun Intermediate People's Court held the second judicial auction of the 90,860,000 shares of *ST Wanfang held by Wanfangyuan, the controlling shareholder, which ended in a failure. Prior to this, the first auction also ended in a failure, and the first auction was withdrawn due to disposal rights issues. As of the announcement date, all of the shares held by Wanfangyuan were pledged and frozen, with 135.41% being subject to sequential freezing. If Wanfangyuan loses its status as the major shareholder, the voting rights entrusted agreement with Huidexi Industry will become invalid, and the company faces risks of changes in controlling shareholders, actual controllers, or having no actual controller. Additionally, the company has been involved in a case for suspected violation of disclosure regulations. The company stated that it will closely monitor the development and timely disclose information, reminding investors to be aware of the risks.