600654: China Security Co.Ltd(600654) suggestive announcement that some shares of the company held by the controlling shareholder will be auctioned by the judiciary

Securities code: 600654 securities abbreviation: St Zhong'an Announcement No.: 2022-017 bond Code: 136821 bond abbreviation: 16 Zhong'an consumer

China Security Co.Ltd(600654)

About some shares of the company held by controlling shareholders

A suggestive announcement that will be auctioned by the judiciary

The board of directors and all directors of the company guarantee that there are no false records, misleading statements or major omissions in the contents of this announcement, and bear individual and joint liabilities for the authenticity, accuracy and completeness of its contents.

Important content tips

The subject matter of this judicial disposal is 38355787 restricted shares of the company held by Shenzhen Zhongheng Huizhi Investment Co., Ltd. (hereinafter referred to as "Zhongheng Huizhi"), the controlling shareholder of China Security Co.Ltd(600654) (hereinafter referred to as "the company"), accounting for 2.99% of the total share capital of the company.

The judicial auction of Zhongheng Huizhi will not lead to the change of the company's control, affect the company's production and operation, or cause the company's equity distribution not to meet the listing conditions.

At present, the judicial auction is still in the publicity stage, and the follow-up will involve auction, payment, equity change and transfer, and the auction results are still uncertain. If the above procedures are completed, the company will timely perform the obligation of information disclosure according to the follow-up progress.

The company received the notice from the controlling shareholder Zhongheng Huizhi on January 26, 2022, and received the auction notice [(2020) Yue 03 Zhi No. 6417] from Shenzhen intermediate people's Court of Guangdong Province (hereinafter referred to as "Shenzhen intermediate people's court") on the dispute over the securities repurchase contract between China Merchants Securities Co.Ltd(600999) Asset Management Co., Ltd. and Zhongheng Huizhi, Shenzhen intermediate people's court will be on the judicial auction platform of Guangdong Shenzhen intermediate people's Court on jd.com( http://sifa.jd.com./2577 )In the online judicial auction on February 28, 2022, 38355787 restricted circulating shares of the company held by henghuizhi accounted for 2.99% of the total share capital of the company. The judicial auction is hereby announced as follows:

1、 Main contents of judicial auction

1. Auction object

38355787 restricted tradable shares of the company held by Zhongheng Huizhi.

2. Auction time

From 10:00 on February 28, 2022 to 10:00 on March 1, 2022 (except for delay).

3. Starting price and price increase range of each bid

Starting price: RMB 75177342.52; Deposit: RMB 7517000; Increase range: 370000 yuan.

4. Bidder's conditions

Legal persons or natural persons who are prohibited by laws and administrative regulations from holding or trading stocks of listed companies shall not participate in bidding;

A legal person or natural person shall not participate in bidding if it is prohibited to acquire a listed company as stipulated by laws, administrative regulations and recognized by the CSRC;

The cumulative amount of shares of the listed company already held by the bidder and its persons acting in concert and the amount of shares they bid for shall not exceed 30% of the issued shares of the listed company. If the bidder and its persons acting in concert still participate in the bidding after accumulating 30% of the shares of the listed company, the bidder shall handle it in accordance with the relevant provisions of the securities law of the people's Republic of China and the measures for the administration of the acquisition of listed companies of the China Securities Regulatory Commission, and report in writing to the Executive Court during this period, The court shall suspend the auction procedure according to law. 5. Auction mode

In the way of price increase auction with reservation price, the reservation price is equal to the starting price. Only when at least one person signs up and the bid is not lower than the starting price can the transaction be concluded.

6. If you have any objection to the ownership of the above subject matter, please contact the judge in charge of the case three working days before the auction day.

7. After the buyer completes the bidding and transfers the ownership, its rights and obligations are bound by the securities law and other laws and regulations.

2、 Other relevant instructions and risk tips

1. At present, the above judicial auction matters are still in the publicity stage, and the follow-up will involve auction, payment, equity change and transfer, and the auction results are still uncertain. If the above procedures are completed, the company will timely perform the obligation of information disclosure according to the follow-up progress.

2. As of the disclosure date of this announcement, Zhongheng Huizhi held 527977838 shares of the company, accounting for 41.15% of the total share capital of the company. If the judicial auction is successful, it will not lead to the change of the company's actual control, affect the company's production and operation, and cause the company's equity distribution not to meet the listing conditions.

3. As of the disclosure date of this announcement, due to Zhongheng Huizhi's own litigation matters, its equity of the company has been frozen by the judiciary, with a total of 527977838 frozen shares, accounting for 100.00% of its shares and 41.15% of the total share capital of the company. In view of the high pledge proportion of the company's shares held by Zhongheng Huizhi and the early warning closing line has been touched, the company's shares held by Zhongheng Huizhi still have the risk of being frozen or disposed of due to other litigation or pre litigation preservation. The company invites investors to invest rationally and pay attention to investment risks.

The company will pay close attention to the progress of the above matters and fulfill the obligation of information disclosure in time in accordance with the relevant provisions of the stock listing rules of Shanghai Stock Exchange. The information disclosure media designated by the company are Shanghai Securities News, securities times and the website of Shanghai Stock Exchange (www.sse. Com. CN), The information publicly disclosed by the company shall be subject to the content published in the above designated information disclosure media. Please pay attention to the follow-up announcement and pay attention to the investment risk.

It is hereby announced.

China Security Co.Ltd(600654) board of directors

January 27, 2002

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