On October 25, recruitment and examination training company Zhonggong Education Technology Co., Ltd.(Zhonggong Education, 002607.SZ) announced that it had recently received a notice from its controlling shareholder Li Yongxin that it learned that the 116 million shares of the company held had been frozen by the judiciary.

Among them, on October 9, Li Yongxin was frozen 48 million shares, accounting for 5.08% of his shares and 0.78% of the company's total share capital; the expiration date is October 8, 2027.

On January 8 this year, Jiang Xiuxia and Li Yongxin signed a "Loan Contract". Jiang Xiuxia provided Li Yongxin with a loan of 80 million yuan. Li Yongxin provided pledge guarantee to Jiang Xiuxia with his 48 million tradable shares of Zhonggong Education. Because Li Yongxin failed to repay his financing debts within the agreed time limit, his 48 million shares of Zhonggong Education were re-frozen by the People's Court of Uptown, Hangzhou City, Zhejiang Province, and judicial re-freezing procedures were handled at China Securities Depository and Clearing Co., Ltd. At present, Li Yongxin is actively promoting debt repayment and other work.

On October 15, Li Yongxin was frozen with 68 million shares, accounting for 7.2% of his shares and 1.1% of the company's total share capital; the expiration date is October 14, 2027.

In this matter, Shanghai Pudong Development Bank Co., Ltd. Beijing Branch applied to China International Economic and Trade Arbitration Commission for property preservation, requesting that the bank deposits of the respondent Beijing Zhonggong Education Technology Co., Ltd. and Li Yongxin be frozen in accordance with the law. If the bank deposits are insufficient, other equivalent property will be sealed up, seized and frozen. The Beijing Financial Court judicial frozen the 68 million shares of Zhonggong Education held by Li Yongxin and went through the freezing procedures with China Securities Depository and Clearing Company.

As of the disclosure date of the announcement, Li Yongxin and his concerted actors held a total of 1.109 billion shares, with a shareholding ratio of 17.98%. The cumulative number of frozen shares of 116 million shares accounted for 10.46% of their shares, and the total proportion of the company's total share capital. 1.88%.

Previously, on July 16, Zhonggong Education disclosed the "Announcement on the Plan for Controlling Shareholders and Their Concerted Actors to Increase Shares". Li Yongxin, the company's controlling shareholder, and Lu Zhongfang, the acting person in concert, planned to increase their shares in the company, and planned to increase their shares in the company. The total amount of shares shall not be less than RMB 200 million and shall not exceed RMB 400 million.

As of October 18, Zhonggong Education announced that controlling shareholder Li Yongxin and his concerted actors had planned to increase their shares in the company more than half of the time, but they had not yet increased their shares. The announcement stated that after the release of this shareholding plan, affected by factors such as the sensitive period of the company's semi-annual report and its own capital planning, the shareholding entity has not increased its shares in the company more than half of the planned increase. This increase in holdings plan has not yet been implemented. The main body of the increase in holdings is firmly optimistic about the company's long-term investment value and future development prospects, and will continue to follow the relevant increase plans, based on stock price fluctuations and overall trends in the capital market, and choose opportunities to gradually implement the increase in holdings plan.

In the first half of this year, Zhonggong Education's operating income was 1.4478 billion yuan, a year-on-year decrease of 16.23%; net profit attributable to shareholders of listed companies was 115.9 million yuan, a year-on-year increase of 41.38%; as of the end of the period, total assets were 6.8176 billion yuan, a year-on-year decrease of 4.51%.

At the end of the period, the contract liabilities of Zhonggong Education were 2.9 billion yuan, accounting for 42.57% of the total assets; the monetary funds were 370 million yuan, and the net increase in cash and cash equivalents was-12.58 million yuan, a year-on-year decrease of 103.39%.