Liangpin Puzi Co., Ltd. Reply Announcement on the Regulatory Work Letter Regarding the Matters Related to the Controlling Shareholder Receiving the Enforcement Notice

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Stock Code: 603719 Stock Abbreviation: Liangpinpuzi Announcement No.: 2026-005

Liangpinpuzi Co., Ltd. Reply Announcement on the Supervision Work Letter Regarding the Execution Notice Received by the Controlling Shareholder

The Board of Directors of the Company and all Directors guarantee that there are no false records, misleading statements, or major omissions in the content of this announcement, and assume legal responsibility for the authenticity, accuracy, and completeness of its content.

Recently, Liangpinpuzi Co., Ltd. (hereinafter referred to as “the Company” or “Liangpinpuzi”) received the Shanghai Stock Exchange’s “Supervision Work Letter Regarding the Execution Notice Received by the Controlling Shareholder of Liangpinpuzi Co., Ltd.” (Shanghai Stock Exchange Letter [2026] No. 0363, hereinafter referred to as “the Work Letter”). The Company attaches great importance to this matter and promptly communicated the regulatory requirements to its controlling shareholder, Ningbo Hanyi Venture Capital Partnership (Limited Partnership) (hereinafter referred to as “Ningbo Hanyi”), the actual controller, and the Company’s directors and senior management. The Company has also inquired about the relevant situation from the controlling shareholder and the actual controller. The responses to the relevant issues are as follows:

1. Regarding the equity pledge status of the controlling shareholder. According to the announcement, in January 2024, Ningbo Hanyi applied to Yunnan Trust for a loan of 300 million yuan and pledged 53.4 million shares of the Company, accounting for 37.80% of its holdings. On May 27, 2025, Yunnan Trust issued a “Notice of Rights Transfer” to Ningbo Hanyi, transferring the aforementioned debt to GuoTong Trust. The Company is required to: (1) provide supplementary information on the specific circumstances of the controlling shareholder Ningbo Hanyi’s share pledge, including but not limited to the pledge registration time, purpose of pledge financing, conditions for the exercise of rights by the pledgee, and progress of the exercise, as well as whether the pledged shares are involved in any disputes; (2) in conjunction with the above overdue debt period, total amount of principal and interest, existing repayment arrangements of the controlling shareholder and actual controller, explain the risk exposure of the pledged shares and the possible impact on the equity structure of the listed company; (3) conduct a self-examination of the previous information disclosure situation and explain whether there are any undisclosed matters that should be disclosed, and whether there have been any instances of untimely or inaccurate information disclosure.

Response:

(1) Specific circumstances of the share pledge

1. Share pledge registration situation

On January 8, 2024, the Company’s controlling shareholder Ningbo Hanyi borrowed 300 million yuan from Yunnan International Trust Co., Ltd. (hereinafter referred to as “Yunnan Trust”) in three loans of 100 million yuan each (hereinafter collectively referred to as “the Debt”), for the purpose of refinancing existing financing, and on January 11, 2024, pledged 37.5 million shares of Liangpinpuzi to Yunnan Trust, and subsequently pledged an additional 7.5 million shares and 8.4 million shares on June 20, 2024, and August 2, 2024, respectively, for a total pledge of 53.4 million shares of Liangpinpuzi. In January 2025, Ningbo Hanyi repaid 20 million yuan of the loan principal, reducing the remaining loan principal to 280 million yuan, and the aforementioned debt matured on January 8, 2025.

2. Conditions and status of the exercise of rights by Yunnan Trust

According to the “Stock Pledge Agreement” signed between Ningbo Hanyi and Yunnan Trust, if Ningbo Hanyi fails to fulfill its payment obligations upon maturity, and Yunnan Trust and Ningbo Hanyi fail to reach a consensus on the proposed plans or remedial measures, Yunnan Trust has the right to demand Ningbo Hanyi fulfill its obligations to pay the remaining total realization price and other payables (if any) in accordance with the agreement, and if Ningbo Hanyi does not complete the payment within the specified time, Yunnan Trust has the right to exercise its pledge rights.

On February 11, 2025, due to the overdue debt, Yunnan Trust applied for execution with the People’s Court of Dongxihu District, Wuhan City. On February 12, 2025, the People’s Court of Dongxihu District, Wuhan City, issued execution notices to Ningbo Hanyi and the guarantors, ordering them to fulfill the following obligations: (1) fulfill the obligations determined by the effective legal documents numbered (2025) XiaLuZhengZhi No. 1302, 1303, and 1304; (2) pay double the overdue debt interest; (3) bear the execution costs of this case. The execution content determined by the notarized execution certificates (2025) XiaLuZhengZhi No. 1302, 1303, and 1304 mainly requires the respondent Ningbo Hanyi to pay the applicant Yunnan Trust the amount listed in the execution subject (including the remaining principal of the debt and interest, etc.), totaling approximately 280,597,777.78 yuan; Yunnan Trust has the right to apply to the People’s Court to require Ningbo Hanyi to assume pledge guarantee liability with its pledged Liangpinpuzi shares and has the right to be preferentially compensated from the proceeds of any valuation or auction, sale of the pledged property; the respondents Yang Hongchun and his spouse Pan Meihong, Yang Yinfeng and her spouse Hong Xiaoxia, Zhang Guoqiang and his spouse Mei Feng shall assume joint and several liability within the scope of the aforementioned execution subject.

3. Transfer of debt rights by Yunnan Trust

On May 27, 2025, Yunnan Trust and GuoTong Trust Co., Ltd. (hereinafter referred to as “GuoTong Trust”) signed the “Stock Income Rights Transfer Agreement,” transferring all remaining rights under the main debt contract to GuoTong Trust. At the same time, Yunnan Trust promised to assist GuoTong Trust in pushing the People’s Court of Dongxihu District, Wuhan City to issue execution rulings regarding the execution cases corresponding to the stock income rights, changing GuoTong Trust to the applicant for execution, and assisting GuoTong Trust in promoting judicial execution procedures; Yunnan Trust shall not unilaterally terminate the pledge registration of the pledged stocks under the stock pledge contract without written notice from GuoTong Trust to terminate the pledge registration.

On May 27, 2025, Yunnan Trust issued “Notice of Rights Transfer” to Ningbo Hanyi and the guarantors regarding three unpaid debts, notifying them that Yunnan Trust has signed a transfer agreement with GuoTong Trust and has transferred all remaining rights under the main debt contract to GuoTong Trust, and requested Ningbo Hanyi and the guarantors to promptly fulfill their obligations to GuoTong Trust in accordance with the relevant provisions of the main debt contract.

According to the agreement, GuoTong Trust paid 80% of the transfer price to Yunnan Trust on May 28; on June 9, it paid the remaining 20% of the transfer price to Yunnan Trust. As of June 9, 2025, Yunnan Trust has transferred all rights, interests, benefits, and income corresponding to the stock income rights it holds to GuoTong Trust. As of now, the pledgee of the aforementioned pledged 53.4 million shares remains registered as Yunnan Trust, and there has been no change in the pledgee.

On June 23, 2025, the People’s Court of Dongxihu District, Wuhan City, served three “Application for Change of Applicant for Execution” submitted by GuoTong Trust to Ningbo Hanyi and other respondents. GuoTong Trust applied to change the applicant for the three execution cases from Yunnan Trust to GuoTong Trust. On July 29, 2025, the People’s Court of Dongxihu District, Wuhan City, issued three “Execution Rulings,” changing GuoTong Trust to the applicant for the three execution cases.

4. Settlement between GuoTong Trust and Ningbo Hanyi

On August 13, 2025, Ningbo Hanyi and GuoTong Trust signed a “Settlement Agreement,” stipulating that the debt in the execution case would be extended for one year from the date GuoTong Trust received the People’s Court’s “Execution Ruling” changing the applicant for execution (i.e., August 1, 2025); the debt in the execution case would mature on the day one year after the change date (inclusive) and on the date specified in this agreement for early maturity; GuoTong Trust has the right to declare the subject debt to be due early and apply to the People’s Court for restoration of execution.

5. GuoTong Trust declares debt due early and applies for execution

On October 17, 2025, Ningbo Hanyi received an “Early Repayment Notice” from GuoTong Trust, stating that GuoTong Trust declared the subject debt under the “Settlement Agreement” to be due early on October 17, 2025.

On January 30, 2026, Yang Hongchun, Yang Yinfeng, Zhang Guoqiang, and other guarantors received an execution notice from the People’s Court of Dongxihu District, Wuhan City, with the content requiring them (the unit) to immediately fulfill their obligations according to the notarized debt documents numbered (2025) XiaLuZhengZhi No. 1302, 1303, and 1304 after receiving this execution notice; if they fail to perform on time, they will be enforced. The amounts listed in the execution notices are as follows:

Unit: Yuan

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6. Whether the pledged shares are involved in disputes

As of the date of this reply, there are no judicial freezing marks on the pledged shares. Besides the aforementioned execution case applied by GuoTong Trust to the People’s Court of Dongxihu District, there are no other disputes involving the pledged shares.

(2) Risk exposure assessment of pledged shares and impact on equity structure

1. Debt situation

In addition to the aforementioned 280 million yuan debt, Ningbo Hanyi also owes 50 million yuan to GuoTong Trust and 35 million yuan to China CITIC Bank. Specific situations are as follows:

(1) In August 2025, Ningbo Hanyi applied for a trust loan of 50 million yuan from GuoTong Trust and pledged 14.5 million shares of Liangpinpuzi (see the announcement “Liangpinpuzi Announcement on the Pledge and Release of Shares by Controlling Shareholder” disclosed by the Company on August 14, 2025, Announcement No. 2025-035), with a loan term not exceeding 12 months, for the purpose of refinancing Guangfa Securities. On October 17, 2025, Ningbo Hanyi received an “Early Repayment Notice” from GuoTong Trust, with the main content stating that the trust client issued a written instruction to GuoTong Trust on October 17, 2025, announcing that all loans would mature on October 27, 2025, and Ningbo Hanyi should repay all principal and interest of the trust loan to GuoTong Trust by October 27, 2025. As of now, GuoTong Trust has not filed a lawsuit regarding this due debt.

(2) In July 2023, Ningbo Hanyi applied for a loan of 45 million yuan from the Wuhan branch of China CITIC Bank, pledging 5.7 million shares of Liangpinpuzi (see the announcement “Liangpinpuzi Announcement on the Pledge and Release of Shares by Controlling Shareholder” disclosed by the Company on July 13, 2023, Announcement No. 2023-042), and later pledged an additional 1.1 million shares and 1.2 million shares on June 20, 2024, and August 2, 2024, respectively (see the announcements disclosed by the Company on June 22, 2024, and August 6, 2024, Announcement No. 2024-023, 2024-028), with a total of 8 million shares pledged. This debt matured in January 2025. In June 2025, Ningbo Hanyi repaid 10 million yuan of the principal, leaving a remaining loan principal of 35 million yuan. As of now, the Wuhan branch of China CITIC Bank has not filed a lawsuit regarding this due debt.

(3) Current debt status and share pledge situation

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2. Existing repayment arrangements of the controlling shareholder and actual controller

Ningbo Hanyi is prioritizing the sale of some of its shares in the Company to repay the debt, and is actively communicating with its creditor GuoTong Trust to seek a settlement regarding debt extension and other matters.

3. Risk exposure assessment of the pledged shares involved in the execution

Unit: Yuan

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Note: 1. The stock price in the above table uses the closing price of Liangpinpuzi on February 6, 2026. 2. The amount in the execution subject includes interest, so it will increase as the debt period extends.

For the 280 million yuan debt involved in this execution, based on Liangpinpuzi’s closing price of 12.00 yuan on February 6, 2026, the current market value of the pledged shares exceeds the execution amount by approximately 360 million yuan, which can cover the related debts of the execution subject, and there is currently no risk exposure. If calculated at the critical point of risk exposure (when the market value of the pledged shares equals the execution amount), when the stock price is below 5.25 yuan/share, there will be a risk exposure for the pledged shares.

4. Impact on the equity structure of the listed company

If Ningbo Hanyi cannot reach a settlement with GuoTong Trust for the debt extension, or if Ningbo Hanyi and its concerted actions do not manage to repay the debt by transferring part of their shares during the extension, and if there are no other assets available for execution from Ningbo Hanyi, there is a risk that the shares held by Ningbo Hanyi in the Company could be enforced, which may lead to a passive decrease in the number of shares held by Ningbo Hanyi. Based on Liangpinpuzi’s closing price of 12.00 yuan on February 6, 2026, to pay off the execution subject amount of 280,597,777.78 yuan would require executing approximately 5.83% of the shares held by Ningbo Hanyi in Liangpinpuzi, reducing the proportion of shares held by Ningbo Hanyi and its concerted actions from 38.22% to 32.39%, while Ningbo Hanyi would still remain the controlling shareholder of the Company; if the execution price is below 12.00 yuan, the proportion of shares held by Ningbo Hanyi and its concerted actions would further decrease.

If Ningbo Hanyi or the actual controller repays the debt by transferring their holdings of listed company shares, they will be required to inform the listed company in a timely manner and fulfill the information disclosure obligations in accordance with regulations.

(3) Self-examination of prior information disclosure

According to the “Stock Listing Rules of the Shanghai Stock Exchange” 4.5.3, “If a court’s ruling prohibits the transfer of its held shares, or if more than 5% of its shares in the Company are pledged, frozen, marked by the judiciary, judicially auctioned, entrusted, set in trust, or legally restricted from voting rights, or there is a risk of compulsory transfer,” the controlling shareholder and actual controller should promptly inform the listed company and cooperate with the company to fulfill the information disclosure obligations.

In accordance with the aforementioned regulatory rules, the Company has reviewed the disclosure situation regarding the shares pledged by the controlling shareholder Ningbo Hanyi as follows:

1. Pledge and disclosure situation

(1) Ningbo Hanyi’s pledged shares to China CITIC Bank for financing

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Note: The current balance of the loan amount of 45 million yuan is 35 million yuan.

(2) Ningbo Hanyi’s pledged shares to Yunnan Trust for financing

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Note: The current balance of the loan amount of 300 million yuan is 280 million yuan.

Yunnan Trust informed Ningbo Hanyi on May 27, 2025, that it has transferred all remaining rights under the main debt contract to GuoTong Trust. As of now, the pledged 53.4 million shares have not undergone pledgee change procedures. Ningbo Hanyi did not promptly inform the Company of this situation.

(3) Ningbo Hanyi’s pledged shares to GuoTong Trust for financing

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As of now, the controlling shareholder Ningbo Hanyi and its concerted actions Ningbo Liangpin Investment Management Co., Ltd. (hereinafter referred to as “Liangpin Investment”) have cumulatively pledged 75.9 million shares of the Company, accounting for 49.52% of their holdings, and 18.93% of the total shares of the Company, of which 8 million shares are pledged to China CITIC Bank; 53.4 million shares are pledged to Yunnan Trust; and 14.5 million shares are pledged to GuoTong Trust. The controlling shareholder Ningbo Hanyi has fulfilled its information disclosure obligations regarding the aforementioned pledge situation.

2. Disclosure situation of freezing, judicial marking, and unfreezing, marking

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As of now, the controlling shareholder Ningbo Hanyi and its concerted actions Liangpin Investment have cumulatively been judicially frozen 2,090,584 shares, accounting for 1.36% of their total shares held and 0.52% of the total shares of the Company. The controlling shareholder Ningbo Hanyi and its concerted actions Liangpin Investment have fulfilled their information disclosure obligations regarding the aforementioned judicial freezing, marking, and unfreezing, marking situation.

3. Disclosure situation of other circumstances

As of now, the controlling shareholder Ningbo Hanyi and its concerted actions Liangpin Investment’s shares in the Company are not involved in judicial auction, entrustment, trust establishment, or legal restrictions on voting rights, or there is a risk of compulsory transfer.

On February 3, 2026, the controlling shareholder Ningbo Hanyi informed the Company that it had received a court execution notice. The Company disclosed the “Liangpinpuzi Announcement on the Execution Notice Received by the Controlling Shareholder and Actual Controller” on February 4, 2026 (Announcement No. 2026-004).

In summary, Ningbo Hanyi and the actual controller have timely fulfilled their information disclosure obligations regarding the pledge, freezing, judicial marking of their shares, and the receipt of court execution notices, and there are no undisclosed matters or instances of untimely or inaccurate disclosure.

2. Regarding the stability of the Company’s control. According to the announcement, if the pledged shares held by Ningbo Hanyi are enforced, it will lead to changes in the equity held by Ningbo Hanyi in the Company. As of now, the number of shares held by Ningbo Hanyi accounts for 35.23% of the Company’s total share capital, while the combined holdings of Ningbo Hanyi and its concerted actions Liangpin Investment account for 38.22% of the Company’s total share capital. The Company is requested to fully assess and explain whether the shares held by the listed company may face risks of pledge liquidation, judicial auction, etc., due to debt repayment, and whether there is a risk of change or instability in the Company’s control.

Response:

(1) Debt and asset status of the controlling shareholder and actual controller

Currently, the overall debt status and share pledge situation of Ningbo Hanyi are as follows:

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In addition to the pledged equity from the aforementioned financing, Ningbo Hanyi has been judicially frozen 2,090,584 shares due to a share transfer dispute case by the Intermediate People’s Court of Guangzhou City, accounting for 1.48% of its holdings in the Company and 0.52% of the total share capital of the Company.

Ningbo Hanyi and its concerted actions Ningbo Liangpin have cumulatively pledged and frozen 77,990,584 shares, accounting for 50.89% of their holdings and 19.45% of the total share capital of the Company. Specific situations are as follows:

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(2) Assessment of the risk of pledge liquidation, judicial auction, and whether there is a change or instability risk in the Company’s control

As previously assessed, regarding the 280 million yuan debt of Ningbo Hanyi to GuoTong Trust involved in this execution notice, if Ningbo Hanyi can reach a settlement with GuoTong Trust regarding the debt extension, this matter will not affect the position of the controlling shareholder.

If Ningbo Hanyi cannot reach a settlement with GuoTong Trust regarding debt extension, or if during the extension period Ningbo Hanyi and its concerted actions fail to repay the debt by transferring part of their shares, and if there are no other assets available for enforcement from Ningbo Hanyi, there is a risk that the shares held by Ningbo Hanyi in the Company could be enforced, leading to a passive decrease in the number of shares held by Ningbo Hanyi, with the extent of decrease mainly determined by the price of the enforced shares.

Regarding Ningbo Hanyi’s total overdue debt of 365 million yuan, if the shares held by Ningbo Hanyi in the Company are enforced, the proportion of shares held by Ningbo Hanyi and its concerted actions will further decrease.

3. The Company requests its controlling shareholder Ningbo Hanyi, actual controllers Yang Hongchun, Yang Yinfeng, and Zhang Guoqiang to carefully assess the risks of instability in the Company’s control that may arise from share pledges and overdue debts, strengthen communication and negotiation with pledgees and related parties, take effective countermeasures, and properly resolve related debt issues. If any judicial execution matters occur with the shares held by the related shareholders, they should promptly fulfill their information disclosure obligations and fully alert relevant risks.

Response:

Ningbo Hanyi immediately communicated and negotiated with its creditor GuoTong Trust upon receiving the court’s restoration of execution notice, striving to resolve the debt at the earliest to protect the legitimate rights and interests of creditors and the stability of the listed company. Ningbo Hanyi will also continue to communicate effectively with creditors and their investors to seek a settlement for debt extension and avoid the forced execution of shares of the listed company.

At the same time, the Company has reminded its controlling shareholder Ningbo Hanyi and actual controllers Mr. Yang Hongchun, Mr. Yang Yinfeng, and Mr. Zhang Guoqiang that if Ningbo Hanyi’s shares in the Company are subject to judicial execution and other matters in the future, they should promptly fulfill their information disclosure obligations. Ningbo Hanyi has replied that it will strictly comply with laws, regulations, and regulatory requirements, and will timely inform the Company of relevant situations and fulfill information disclosure obligations.

4. All directors and senior management of the Company should be diligent and responsible, ensuring the stability of the Company’s production and operations, and legal compliance in information disclosure. At the same time, closely monitor market sentiment and media reports, respond promptly to market concerns, and maintain communication with investors.

Response:

The Company has distributed the “Work Letter” to all directors and senior management for understanding the regulatory requirements. When the controlling shareholder faces repayment risks, all directors and senior management of the Company will adhere to business stability as the priority and implement various measures such as strengthening governance, stabilizing the team, continuing business, risk control, internal and external communication, and compliance disclosure to ensure that the Company’s operations are not impacted by shareholder-level risks, maintaining the independence, ongoing viability, and market confidence of the listed company. Key aspects will include:

1. Strengthening corporate governance. Ensure that the responsibilities of the Board of Directors and management are clear, decision-making processes are standardized, and avoid affecting daily business decisions due to shareholder issues.

2. Enhancing financial and capital control. Strictly control capital outflows to ensure operational fund safety; prudently arrange investment and financing activities to prevent liquidity risks.

3. Strengthening internal and external communication. Internally emphasize unchanged strategy and strengthen information alignment; externally maintain good communication with financial institutions, major customers, and suppliers, while promptly responding to investors and media concerns to stabilize market expectations.

4. Strictly adhere to compliance standards. Actively cooperate with regulatory agencies; strictly operate according to laws, regulations, and rules, and disclose significant company matters to avoid panic in the market due to information asymmetry.

This announcement is hereby given.

Board of Directors of Liangpinpuzi Co., Ltd.

March 18, 2026

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