Lianlian DigiTech Co., Ltd. Announces Partial Uplift of Judicial Freezing of Controlling Shareholder’s Shares

Date: March 3, 2026

Key Highlights of the Announcement

• Partial Uplift of Judicial Freezing: Lianlian DigiTech Co., Ltd. has announced that 73,715,995 unlisted shares held by Mr. Lu Zhonglin, a controlling shareholder, are no longer subject to judicial freezing. These shares represent approximately 6.56% of the total issued shares of the company.
• Remaining Shares Still Frozen: 18,600,560 unlisted shares held by Mr. Lu Zhonglin, equating to about 1.65% of the total issued shares, remain under judicial freezing.
• Current Shareholding Structure: As of the date of the announcement, Mr. Lu Zhonglin directly holds 92,316,555 unlisted shares, which is approximately 8.21% of the company’s total issued shares.
• Controlling Shareholder Group: Mr. Zhang Zhengyu, Hangzhou Chuanglianzhixin Investment L.P., Mr. Lu Zhonglin, and Ms. Xiao Seqiu collectively control around 35.12% of the company’s issued shares, maintaining their status as a group of controlling shareholders.
• Continuous Monitoring: The company has stated it will closely monitor developments regarding the judicial freezing and will fulfill its disclosure obligations promptly as new information arises.

Detailed Analysis and Potential Share Price Impact

The partial uplift of the judicial freezing of shares held by a key controlling shareholder is a significant development for Lianlian DigiTech Co., Ltd. Such judicial actions often relate to legal disputes or enforcement actions involving shareholders and can raise concerns among investors regarding stability and governance.

The release of the freeze on a majority portion (over 79% of the previously frozen shares) indicates a positive resolution or progress in underlying legal matters concerning Mr. Lu Zhonglin. This may alleviate some uncertainty and perceived risk associated with the shareholding structure, potentially restoring investor confidence.

However, a portion of Mr. Lu’s shares (1.65% of total shares) remains frozen, signaling that not all legal matters have been resolved. Investors should be aware that further developments could still impact the company’s governance or share price. The fact that the controlling group retains over a third of the company’s shares ensures continued influence over corporate decisions, which may be reassuring for some investors.

The company’s proactive approach in updating shareholders and emphasizing ongoing disclosure obligations enhances transparency, which is generally viewed positively by the market.

Important Considerations for Shareholders

• Potential Price Sensitivity: The resolution of share freezing issues involving a controlling shareholder can be a price-sensitive event. It may result in increased investor confidence and trading activity, potentially affecting share value.
• Ongoing Legal Matters: The fact that some shares remain frozen means not all risks have been eliminated. Shareholders should closely monitor further updates from the company.
• Corporate Control: The stability of the controlling shareholder group suggests there will be no immediate changes in the company’s strategic direction stemming from changes in shareholding structure.

Board Composition

The company’s board is comprised as follows:

• Executive Directors: Mr. Zhang Zhengyu, Mr. Xin Jie, Ms. Wei Ping, and Mr. Zhu Xiaosong
• Independent Non-Executive Directors: Mr. Chun Chang, Mr. Wong Chi Kin, and Ms. Lin Lanfen

Investor Advisory

The company advises shareholders and potential investors to exercise caution when dealing in the securities of Lianlian DigiTech Co., Ltd., given the ongoing nature of the legal matters and the potential for further developments.

Disclaimer: This article is for informational purposes only and does not constitute investment advice or an offer to buy or sell any securities. Investors should conduct their own due diligence and consult professional advisors before making investment decisions. The information is based on publicly released company announcements and may be subject to change or further updates.

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