Core Viewpoint - The controlling shareholder of Zhongchen Co., Ltd. plans to reduce its stake in the company by up to 16,412,713 shares, representing 3.00% of the total share capital, through centralized bidding or block trading within three months after the announcement [1][3]. Group 1: Shareholder Reduction Plan - Zhongchen Holdings Co., Ltd. intends to sell shares amounting to approximately 133.11 million yuan based on the previous trading day's closing price of 8.11 yuan per share [2]. - The reduction will be executed in two ways: through centralized bidding, with a limit of 1% of the total share capital over any consecutive 90 days, and through block trading, with a limit of 2% of the total shares over the same period [1][3]. Group 2: Company Background and Financials - As of the announcement date, Zhongchen Holdings holds 223,750,000 shares, accounting for 40.90% of the total share capital, and the reduction will not affect the company's control or governance structure [3]. - Zhongchen Co., Ltd. was listed on the Shenzhen Stock Exchange's Growth Enterprise Market on January 22, 2021, with an initial issuance of 91.7 million shares at a price of 3.37 yuan per share, raising a total of 309 million yuan [3][4]. - The company aimed to raise 440 million yuan, with 143 million yuan allocated for environmentally friendly special cables for rail transit, 73.66 million yuan for special cables for new energy, and 200 million yuan for working capital [3][5].

Group 1 - The company raised a total of RMB 61,600 million through a private placement of shares, with a net amount of RMB 60,522.15 million after deducting issuance costs [1][5] - As of June 30, 2025, the company has invested RMB 32,584.91 million in projects funded by the raised capital, with a remaining balance of RMB 1,358.32 million in the special account [1][3] - The company has established multiple special accounts for the management of raised funds, ensuring compliance with regulations and transparency [2][3] Group 2 - The company has committed to invest in two main projects: the construction of special cables for rail transit and special cables for new energy, with actual investments reflecting changes in project implementation [4][5] - Changes in project locations and implementation entities have occurred, leading to a reduction in land area and optimized resource allocation, resulting in lower actual investment amounts compared to initial estimates [5][6] - The company generated RMB 1,487.81 million in interest income from temporarily idle raised funds, which were managed effectively [5][6] Group 3 - The company has permanently supplemented its working capital with RMB 28,106.56 million of surplus raised funds, following the completion of investment projects [5][6] - There have been no instances of external transfer or replacement of the raised funds investment projects [5] - The actual benefits realized from the investment projects are below the promised cumulative benefits by 20% or more, indicating a need for further assessment of project performance [6]