Longda Food Holdings' Controlling Shareholder's 10 Million Shares Face Judicial Freeze Again; 36.28 Million Yuan in Debt Obligations Will Result in Forced Liquidation

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Shandong Longda Food (Rights Protection) Co., Ltd. (Stock Code: 002726, Stock Abbreviation: Longda Food) announced on March 19 that the company’s controlling shareholder, Lanyun Development Holding Group Co., Ltd. (hereinafter referred to as “Lanyun Development”), had 10 million shares of the company re-frozen by judicial order, and these shares will be forcibly sold due to a pledge-backed securities repurchase dispute to settle a debt of 36.287298 million yuan.

The announcement states that this share freeze was executed by the Jinan City Zhong District People’s Court, with the freeze starting on March 17, 2026, and expiring on March 15, 2029. The frozen 10 million shares account for 3.40% of Lanyun Development’s holdings in the company and 0.93% of the total share capital. All are freely tradable unrestricted shares, pledged by Lanyun Development earlier.

According to the “Assistance Execution Notice” issued by the court, due to a pledge-backed securities repurchase dispute between Lanyun Development and Zhongtai Securities Co., Ltd., the civil judgment (2025) Lu 01 Min Zhong 15709 issued by the Jinan Intermediate People’s Court has taken effect, but Lanyun Development has not fulfilled its repayment obligation. The court ordered the 10 million shares of Longda Food held by Lanyun Development to be changed from “unrestricted circulation” to “saleable frozen” and required that sales cease once the proceeds reach 36.287298 million yuan, with the funds to be deducted to a court-designated account.

Meanwhile, the “Execution Ruling” shows that the court ordered the freeze and deduction of 38 million yuan from Lanyun Development’s bank deposits (including late payment interest) or seizure and impoundment of equivalent assets.

As of the disclosure date, Lanyun Development’s total frozen Longda Food shares reached 17.5134 million, accounting for 5.96% of its holdings and 1.62% of the total share capital. Currently, Lanyun Development holds 293,885,800 shares of Longda Food, representing a 27.23% stake. If all 10 million shares are forcibly sold, its holdings will decrease to 283,885,800 shares, and the stake will drop to 26.31%.

Longda Food stated in the announcement that the freezing and forced sale of shares will not lead to a change in the company’s actual control, nor will it adversely affect the company’s production, operation, or governance. The company maintains independence in assets, business, and finances from the controlling shareholder, with no illegal occupation of non-operational funds or violations of guarantees harming the interests of the listed company. The company will continue to monitor the progress of this matter and fulfill disclosure obligations in a timely manner.

Market analysts pointed out that forced liquidation of controlling shareholder shares may exert short-term pressure on the company’s stock price, but the long-term impact depends on the resolution of Lanyun Development’s debt issues and the company’s fundamental operations. Investors should be aware of related risks.

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