HC Group Inc. Announces Freezing Order on Beijing Panpass Shares: Key Information for Investors

Key Points from the Announcement

• Freezing Order Issued: A substantial number of shares in Beijing Panpass Information Technology Co., Ltd (“Beijing Panpass”), an indirect non-wholly owned subsidiary of HC Group Inc., have become subject to freezing orders.
• Shareholdings Affected:
  • 45,405,734 shares (approximately 64.2% of issued shares) held by Beijing Huicong Zaichuang Technology Co., Ltd. (an indirect subsidiary of HC Group Inc.)
  • 6,234,056 shares (approximately 8.81% of issued shares) held by Tianjin Juxin Zhongcheng Information Consultation Partnership (Limited Partnership), which is controlled by Beijing Panpass’ senior management and employees, including Executive Director Mr. Zhang Yonghong
• Duration of Freezing Order: The freezing order is effective from 24 February 2026 to 23 February 2029.
• Business Impact: According to Beijing Panpass, the freezing order has not resulted in any material adverse impact on its ordinary and usual business operations, based on information currently available.
• Ongoing Monitoring: The Group is closely monitoring the situation and will provide further updates if and when appropriate.

Potentially Price-Sensitive Information

• Control of Shares: The freezing order covers a combined 72.9% of Beijing Panpass’ issued shares, significantly impacting the control and liquidity of the shares held by both HC Group Inc. and Beijing Panpass’ senior management.
• Involvement of Senior Management: The affected shares include those held by a partnership controlled by senior management and employees, notably Mr. Zhang Yonghong, who is also an Executive Director of HC Group Inc.
• Market Implications: While Beijing Panpass asserts no material adverse business impact, the freezing of such a large proportion of shares may affect investor sentiment, trading liquidity, and future corporate actions. Investors should be aware that the locked-up shares may limit flexibility in share transactions and could potentially affect the share price of HC Group Inc. and its subsidiary.
• Further Announcements: HC Group Inc. has pledged to issue further announcements should new material information become available. Investors should remain vigilant for updates.
• Board Composition: The announcement lists the directors as of the announcement date, which includes senior management with direct involvement in the affected shares.

Summary for Investors

The freezing order on a majority of Beijing Panpass shares held by both HC Group Inc.’s indirect subsidiary and senior management is a significant event. The extended duration (three years) of the freezing order could curtail share liquidity and potentially limit future corporate actions. Although no immediate adverse impact on business operations has been reported, this situation has the potential to influence share prices due to concerns about control, flexibility, and uncertainty. Shareholders and potential investors are strongly advised to exercise caution when dealing in HC Group Inc. securities and to monitor official updates closely.

Board of Directors

• Mr. Liu Jun (Chairman, Executive Director, and Chief Executive Officer)
• Mr. Zhang Yonghong (Executive Director)
• Mr. Guo Fansheng (Non-executive Director)
• Mr. Lin Dewei (Non-executive Director)
• Mr. Xing Jingfeng (Non-executive Director)
• Mr. Zhang Ke (Independent Non-executive Director)
• Mr. Zhang Tim Tianwei (Independent Non-executive Director)
• Ms. Qi Yan (Independent Non-executive Director)

Investor Caution

Shareholders and potential investors are reminded to exercise caution when dealing in the securities of the Company.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. The information is based on official company disclosures and may be subject to further updates. Investors are urged to conduct their own research and consult with professional advisers before making any investment decisions.

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