Group 1 - The company has completed the transfer of 18 million shares, representing 4.29% of the total share capital, due to a judicial auction of shares held by the controlling shareholder [1][2] - The controlling shareholder, Dongyi Tianzheng, has passively reduced its holdings by a total of 30 million shares, accounting for 7.15% of the company's total share capital, through two judicial auctions between February 28, 2025, and June 25, 2025 [1][2] - Following the equity change, the total shareholding of Dongyi Tianzheng and its concerted party, Mr. Chen Hui, decreased from 119,491,901 shares (28.48%) to 89,491,901 shares (21.33%) [2] Group 2 - The equity change does not result in a change of control of the company, as the actual controller, Mr. Chen Hui, still retains control despite the reduction in shareholding [2][3] - The reduction in shareholding is primarily due to a default on stock pledge financing, and it will not affect the independence of the company in terms of personnel, assets, finances, business, or organization [2][3] - The company will continue to monitor the situation closely and fulfill its information disclosure obligations in accordance with legal regulations [3]

Core Viewpoint - Hainan Ruize (002596) announced that its shareholder, Daxing Group, will auction 15,002,700 shares, representing 100% of its holdings and 1.31% of the company's total share capital, from July 21 to July 22, 2025, to settle debt disputes [1] Company Impact - The auction is not expected to have a significant impact on the company's daily operations and does not involve a change in control of the company [1] - The outcome of the auction remains uncertain, and the company will continue to monitor the situation and fulfill its information disclosure obligations [1]