ST Lianguang: Responds to Shareholder Inquiry Letter from Investor Service Center, Discloses Information on Fund Occupation

ST Lianguang announced that the company and its two wholly-owned subsidiaries recently received three "Shareholder Inquiry Letters" from the China Securities Investor Services Center, inquiring about the resolution of fund occupation matters, and the company has responded to the relevant issues. Upon self-inspection, the company's subsidiaries, through the method of prepaying procurement funds in copper trading, are suspected of non-operational fund occupation by the controlling shareholder and actual controller. As of the date of the reply letter, the outstanding principal balance totaled 1.692 billion yuan, with interest calculated at a temporary rate of 3% based on the one-year LPR, totaling 29.7614 million yuan from April 1, and the principal balance has not changed and the amounts have not been repaid. Currently, the controlling shareholder is facing a debt crisis, no sufficient assets that can be effectively enforced for repayment have been found, and the repayment plan has not yet been clarified. The company has suspended the relevant business and improved its internal control system. The board of directors has deliberated and approved a proposal to file a lawsuit against the controlling shareholder and actual controller, and the litigation is currently in the planning stage. The company has taken accountability measures against the actual controller, including resignation from the position of president and deduction of performance annual salary, and the CSRC has opened an investigation into the company and the actual controller.