*St Gaosheng (000971): Abnormal Volatility In Stock Trading

Stock Code: 000971 stock abbreviation: * ST Gaosheng Announcement No.: 2020-91

Announcement on abnormal fluctuation of stock trading of Gaosheng Holding Co., Ltd

The records, the board of directors and the company's misrepresentation or disclosure of material information are false and complete.

I. Introduction to abnormal fluctuations in stock trading

Gaosheng Holding Co., Ltd. (hereinafter referred to as "the company") shares (securities code:

000971, stock abbreviation: * ST high rise) in November 13, November 16, November 17, 2020 for three consecutive trading days, the cumulative deviation value of closing price increase exceeds 12%. According to the relevant provisions of the trading rules of Shenzhen Stock Exchange, it belongs to the abnormal fluctuation of stock trading.

II. Relevant information concerned and verified by the company

In view of the abnormal fluctuation of the company's stock trading, the board of directors of the company has checked the relevant matters. The relevant information is as follows:

1. There is no need to correct and supplement the information disclosed by the company in the early stage;

2. The company has not found any unpublished major information reported by the public media recently that may or has had a great impact on the stock trading price of the company;

3. There is no significant change in the company's disclosed business situation and internal and external business environment;

4. The company, the controlling shareholder and the actual controller have no material matters about the company that should be disclosed but not disclosed, or in the planning stage;

5. During the abnormal fluctuation of the company's stock trading, the controlling shareholder and the actual controller do not buy or sell the company's stock.

3. Whether there is any information that should be disclosed but not disclosed

After further verification and confirmation, the board of directors of the company has not disclosed any matters that should be disclosed in accordance with the relevant provisions such as the Listing Rules of Shenzhen Stock Exchange, or the planning, negotiation, intention and agreement related to the matter. The board of directors has not been informed that the company should disclose according to the relevant provisions of the Listing Rules of Shenzhen Stock Exchange However, there is no need to correct and supplement the information disclosed by the company in the early stage.

4. Risk tips deemed necessary by listed companies

(1) main risk tips

1. The audited net profit of the company in two consecutive accounting years of 2018 and 2019 is negative, and the stock of the company has been warned of delisting risk by Shenzhen Stock Exchange. If the audited net profit of the company in 2020 continues to be negative, there is a risk that the company's shares will be suspended from listing after the announcement of the 2020 annual report.

2. The company has repeatedly disclosed the existing illegal guarantee and the occupation of non operating funds of the company by the original controlling shareholder and its related parties in the periodic report and interim announcement. The company may pay the relevant debts due to the joint guarantee liability, which may have a certain impact on the financial situation of the company. At present, the company is engaging external lawyers to actively solve the relevant cases. The company will continue to actively declare creditor's rights to the relevant responsible parties and investigate the responsibility. Through various means, the company will release the company's illegal guarantee liability as soon as possible, and safeguard the legitimate rights and interests of all shareholders, especially small and medium-sized shareholders.

3. On August 14, 2020, the company published the announcement on the judicial transfer of the shares auctioned by the original controlling shareholder and the change of the controlling shareholder and actual controller of the company (Announcement No.: 2020-67). All 158550396 shares of the company held by Beijing Yuchi Ruide Investment Co., Ltd., the former controlling shareholder of the company, were publicly auctioned on the auction platform of Beijing property exchange, accounting for the total share capital of the company

　　15.02%。 Tianjin bairuoke Pharmaceutical Biotechnology Co., Ltd

Ruoke) won the above shares and completed the transfer registration procedures in China securities registration and Clearing Co., Ltd. on August 13, 2020.

Mr. Zhang Dai, chairman and general manager of the company, holds 100% equity of Tianjin bairuoke. After the completion of the share transfer, Tianjin bairuoke holds 158550396 shares of the company, accounting for 15.02% of the total share capital of the company, becoming the controlling shareholder of the company and Mr. Zhang Dai becoming the actual controller of the company.

(2) after self inspection, the board of directors of the company confirms that there is no violation of fair disclosure of information.

(3) the information disclosure media designated by the company are China Securities Journal, Shanghai Securities News, securities times, securities daily and www.cninfo.com.cn. All information of the company shall be subject to the information published in the above designated media. The company will conscientiously perform the obligation of information disclosure in strict accordance with the provisions and requirements of relevant laws and regulations, and make a good letter in time Working interest disclosure. Please invest rationally and pay attention to risks.

It is hereby announced

Board of directors of Gaosheng Holding Co., Ltd

November 17, 2002