Taihe Water: Shareholders holding more than 5% of the shares will have 5.1691 million shares auctioned off by the judiciary.

Taihe Water announced that shareholder He Wenhui, who holds more than 5% of the shares, holds 11.9639 million shares of the company, accounting for 10.56% of the total share capital. Due to a contractual dispute with Huachong Fund, his 5.1691 million shares of unrestricted tradable shares will be judicially auctioned and sold. This matter will not result in a change of control of the company and will not affect normal operations and governance. The judicial auction process involves multiple stages, with an uncertain outcome, and the transferee is not allowed to reduce their holdings within six months.