Lugang Culture (601599): Early Termination Of Reduction Plan, Current Shareholding Ratio Of 6.21%

Lugang culture (601599. SH) announced that Chen Hanhai, a shareholder with more than 5% of the company's shares, planned to trade through block trading or centralized bidding from September 1, 2020 to December 31, 2020, and reduce the number of shares held by the company to no more than 12 million shares. Due to the related stock pledge type repurchase transaction between Mr. Chen Hanhai and Soochow Securities Co., Ltd., which triggered the breach of the agreement again, the shares pledged by Mr. Chen Hanhai in Soochow Securities Co., Ltd. could not be returned in time (including principal, interest and liquidated damages), Mr. Chen Hanhai and Soochow securities agreed to terminate the reduction plan ahead of time, and Soochow securities will be forced to close some of the Pledged Shares.

From September 1, 2020 to November 13, 2020, Chen Hanhai reduced 3.9974 million shares of the company through centralized bidding, accounting for 0.45% of the total share capital of the company.

Chen Hanhai passively reduced 5.4 million shares from July 24, 2020 to August 3, 2020, and 3.9974 million shares from September 1, 2020 to November 12, 2020, totaling 9.3974 million shares, and the proportion of shares held by the company decreased from 7.26% to 6.21%.

Before the implementation of the plan, Chen Hanhai held 59.4055 million shares of the company's shares, accounting for 6.65% of the total shares of the company. As of the date of information disclosure, Chen Hanhai held 55.4281 million shares of the company, accounting for 6.21% of the total shares of the company.