After the actual controller was ordered to correct, 2000 shares were auctioned, and the loan dispute was prosecuted, the photovoltaic company was then pre-restructured.

Recently, Jiangsu Zhongli Group has fallen into a negative situation again.

From June 1 to 2, ST Zhongli issued a number of announcements, including loan contract disputes, the decision of the SFC to order correction, and the reorganization of subsidiaries.

Announcement 1: The actual controller was ordered by the CSRC to make a decision

on correction. On June 1, ST Zhongli announced that Zhongli Group was informed on May 30, 2023. Mr. Wang Baixing , the controlling shareholder of the Company , received the Decision on Ordering Wang Baixing to Take Corrective Measures (Decision on Measures [2023] No.069) issued by Jiangsu Regulatory Bureau of China Securities Regulatory Commission.

The announcement shows that, after investigation, Wang Baixing has the following irregularities:

In December 2017, you or Jiangsu Zhongli Holding Group Co., Ltd. Signed income guarantee agreements with six investors, including Jiangsu New Yangtze Shipbuilding Co., Ltd., Guangzhou Rural Commercial Bank Co., Ltd., Xingtie Capital Investment Management Co., Ltd., Changshu Development Investment Co., Ltd., Zhejiang Zheshang Industrial and Financial Asset Management Co., Ltd., and Zheshang Bank Co., Ltd., respectively, and agreed to guarantee the income of the company's shares subscribed by them. The relevant agreement has a significant impact on the decision-making of investors and is an important part of the non-public offering, which shall be disclosed in accordance with the provisions of the second paragraph of Article 52 of the Measures for the Administration of Securities Issuance by Listed Companies (Order No.30 of the CSRC). As the controlling shareholder and actual controller of the company,

you signed the above agreement, but did not announce the above information through the listed company, which violated the provisions of Article 47 of the Measures for the Management of Information Disclosure of Listed Companies (Order No.40 of the Securities Regulatory Commission). In accordance with the provisions of Article 59 of the Measures for the Administration of Information Disclosure of Listed Companies (Order No.40 of the CSRC), we hereby take regulatory measures to order you to make corrections and record them in the integrity files of the securities and futures markets. You should strictly abide by relevant laws and regulations, earnestly fulfill the obligation of information disclosure, prevent the recurrence of such violations, and submit a written report to our Bureau within 10 working days from the date of receipt of this decision.

Announcement 2: Controlling shareholder Wang Baixing's 20 million shares were auctioned

on June 1. From 10:00 on May 30, 2023 to 10:00 on May 31, 2023, Suzhou Intermediate People's Court auctioned 10 million shares of the company held by Mr. Wang Baixing, the controlling shareholder of Zhongli Group, on Taobao Judicial Auction Network Platform. A total of 20 million shares of the Company held by Mr. Wang Baixing, the controlling shareholder, were auctioned on May 29 and May 30 .

The announcement shows that as of the date of this announcement, Zhongli Group disclosed that the auction had ended on April 28. However, the successful bidding shares have not yet completed the transfer, and the final result is based on the court's ruling on the auction shares and the final completion of the transfer.

If the auction matters on May 29, May 30 and May 31 are finally completed and the transfer is completed, Mr. Wang Baixing will directly hold 129,527,600 shares, accounting for 14.86% of the total shares of the Company; Mr. Wang Baixing and the persons acting in concert with him will hold a total of 146,310,700 shares, accounting for 16% of the total shares of the Company.

Announcement III: ST Zhongli and its subsidiaries were sued

On June 1, ST Zhongli announced that the Company received the relevant legal documents on June 1, 2023. In view of the fact that the case has not yet been heard, it is impossible to judge the impact on the company's current or future profits.

The announcement shows that the plaintiff, Changshu Branch of China Construction Bank Co., Ltd., and the defendant, Suzhou Tenghui ", said in the announcement. The plaintiff signed the Maximum Mortgage Contract with four defendants, and the plaintiff signed the Maximum Principal Guarantee Contract with two defendants. The Plaintiff and the Defendant signed the RMB Working Capital Loan Contract , and the Defendant and the Plaintiff respectively signed loan extension agreements for the above RMB Working Capital Loan Contract. Suzhou Tenghui Photovoltaic Technology Co., Ltd. failed to repay the principal and interest of the loan in accordance with the relevant contract.

Now the plaintiff requests the court to order: Suzhou Tenghui Photovoltaic Technology Co., Ltd. Total attorney fees 1.

" The Suzhou Intermediate People's Court held that In order to effectively identify the value and feasibility of the debtor's reorganization, reduce the cost of reorganization and improve the success rate of reorganization, it was decided to start the pre-reorganization of the debtor Zhonglian Optoelectronics and Tenghui Photovoltaic.

As at the date of this announcement, Zhongli Group, the listed entity, has entered the pre-reorganisation stage, and the Company and the interim administrator are actively promoting matters relating to the reorganisation.

The company said that the pre-reorganization procedures of the company and its subsidiaries were initiated by the Suzhou Intermediate Court, and the follow-up work will be coordinated to promote related work. If the pre-reorganization of the above subsidiaries is successful and the reorganization is successfully implemented, it will be conducive to resolving debt risks, improving the structure of assets and liabilities, and optimizing performance.