New East(SH:603110) Zheng Quan Zhi Xing·2025-07-01 16:30Core Viewpoint - The announcement details the judicial auction and transfer of shares held by the controlling shareholder of New Oriental New Materials Co., Ltd., resulting in a significant change in shareholding structure and potential implications for corporate governance [1][2]. Summary by Sections Overview of Equity Change - The equity change involves the judicial auction of 7,024,103 unrestricted circulating shares held by the controlling shareholder Xu Guangbin, which represents 64.34% of his holdings and 3.49% of the company's total share capital [1]. - Following this change, Xu Guangbin's shareholding will decrease from 10,916,903 shares to 3,892,800 shares, potentially altering the controlling shareholder status [1][4]. Shareholding Structure Post-Change - After the equity change, Jiangsu Teliang New Materials Technology Co., Ltd. becomes the largest shareholder with 12,000,000 shares (5.96%), along with its concerted action partner Wuxi Hongsheng Dingrong Investment Management Partnership holding 7,024,103 shares (3.49%), totaling 19,024,103 shares (9.45%) [2][4]. - The second-largest shareholder is Zhu Junfei, holding 8.84% of the shares [2]. Board Composition - The sixth board of directors consists of 9 members, with 5 nominated by Xu Guangbin and 4 by Zhu Junfei [2][4]. Legal and Compliance Aspects - The auctioned shares are subject to a 6-month lock-up period during which the new shareholders cannot reduce their holdings [3][6]. - Xu Guangbin has an additional 4,030,000 shares that are subject to passive reduction through a combination of centralized bidding and block trading, which, if completed, would further reduce his holdings to 2,700,000 shares (1.34% of total shares) [3][6]. Background of Major Shareholder - The legal representative of Jiangsu Teliang, Xu Zhengliang, has been listed as a "dishonest executor" and has restrictions on consumption, which may impact the company's operations [5].