Shenzhen Derun Electronics Co., Ltd. Disclosure Announcement Regarding Judicial Auction of Partial Shares Held by Controlling Shareholder

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Stock Code: 002055 Stock Abbreviation: ST Derun (Rights Protection) Announcement No.: 2026-012

Shenzhen Derun Electronics Co., Ltd.

Notice of Judicial Auction of Part of Controlling Shareholder’s Shares

Our company and all members of the Board of Directors guarantee that the information disclosed is true, accurate, and complete, with no false records, misleading statements, or major omissions.

Key Highlights:

1. The subject of this judicial auction is 4,300,000 shares held by the controlling shareholder, Shenzhen Desheng Asset Management Co., Ltd., accounting for 52.79% of its holdings and 0.71% of the total share capital; and 13,550,000 shares held by Mr. Qiu Jianmin, one of the actual controllers, accounting for 96.79% of his holdings and 2.24% of the total share capital.

2. This judicial auction currently does not significantly impact the company’s production and operations, nor does it involve changes in the company’s controlling shareholder or actual controller; however, there is a potential risk of future changes in control. Investors are advised to invest rationally and be aware of investment risks.

3. This judicial auction does not involve centralized bidding or block trades for reduction.

Shenzhen Derun Electronics Co., Ltd. (hereinafter referred to as “the Company”) received notices from its controlling shareholder, Shenzhen Desheng Asset Management Co., Ltd. (“Desheng Company”), and one of the actual controllers, Mr. Qiu Jianmin, as well as information from Alibaba’s judicial auction platform, indicating that some of Desheng Company’s and Mr. Qiu Jianmin’s shares will be auctioned by judicial process. The details are as follows:

I. Basic Information on Shares Subject to Judicial Auction

(1) Basic situation of shares being auctioned

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(2) Main contents of the auction announcement

1. Auction targets: Shares held by Shenzhen Desheng Asset Management Co., Ltd. and Mr. Qiu Jianmin, totaling 4,300,000 shares and 13,550,000 shares respectively. Mr. Qiu Jianmin’s shares will be auctioned in batches (two batches: 9,480,000 shares and 4,070,000 shares). These shares are pledged and judicially frozen; details are in the company’s disclosures on January 28, 2022 (“Announcement on Share Unfreezing and Re-pledging”) and April 17, 2023 (“Announcement on Share Freezing”) (Announcement Nos.: 2022-012, 2023-016).

Starting bid for Desheng Company’s 4,300,000 shares: 27.09 million yuan, deposit: 2.7 million yuan, increment: 1 million yuan and multiples thereof; for Mr. Qiu Jianmin’s 9,480,000 shares: 59.724 million yuan, deposit: 5.9 million yuan, increment: 1 million yuan; for his 4,070,000 shares: 25.641 million yuan, deposit: 2.5 million yuan, increment: 1 million yuan.

The starting bid is calculated as the average closing price of the 20 trading days prior to the auction multiplied by the total number of shares, but if this bid is lower than the amount owed to the mortgagee, the auction price will be adjusted according to legal requirements to cover the debt plus fees, after notifying the mortgagee for consultation. The displayed prices and deposits before the auction are for reference only; deposits are 10% of the starting bid.

2. Auction platform: Chongqing First Intermediate People’s Court Taobao Judicial Auction Platform.

3. Auction time: From 10:00 on April 20, 2026, to 10:00 on April 21, 2026 (excluding extensions).

4. Special reminders: (1) The auction has an extension bidding feature. If no bids are placed within five minutes before the end, the last bid will be the final price; if bids are placed, the bidding time extends by five minutes from the last bid. The bid time is based on the time the bid is entered into Taobao’s system. (2) After the auction, Taobao will generate a “Judicial Auction Online Bidding Success Confirmation,” listing the actual buyer’s name and bidding number. The deposit paid by the successful bidder will be automatically transferred to the court’s designated account. The buyer must pay the remaining amount by May 1, 2026, via bank transfer or Alipay. For details, please consult the court.

(3) Cumulative auctioned shares of shareholders

In addition to the above, the company’s controlling shareholder Desheng Company was auctioned for 5 million shares from July 15-16, 2024, with 500,000 shares successfully bid and transferred; the remaining 4.5 million shares were auctioned again from Nov 6-7, 2024, with 4,392,800 shares successfully bid and transferred; 107,200 shares were auctioned from Jan 4-5, 2025, with successful transfer. Also, Desheng Company and Mr. Qiu Jianmin auctioned a total of 20,718,999 shares from Aug 29-30, 2024, with 4,150,000 shares successfully bid and transferred; 11,409,700 shares from Oct 10-11, 2024; 26 million shares from June 1 to July 31, 2025; 18.6 million shares from June 9-10, 2025, all successfully bid and transferred. As of this announcement, the total shares auctioned and transferred are 95,328,699 shares, accounting for 15.77% of the total share capital.

II. Other Explanations and Risk Warnings

1. As of this disclosure, the controlling shareholder and its concerted parties have no non-operational capital occupation or illegal guarantees harming the company’s interests.

2. The company maintains independence in assets, operations, and finances from its controlling shareholder. The company’s production and operations are normal, and as of this disclosure, these matters do not significantly affect corporate governance or daily operations.

3. As of this disclosure, Desheng Company holds 8,144,933 shares (1.35%), Mr. Qiu Jianmin holds 14 million shares (2.32%), and Desheng and its concerted parties hold a total of 34,344,966 shares (5.68%). If the auction is successful and ownership is transferred, Desheng’s holdings will decrease to 3,844,933 shares (0.64%), Mr. Qiu’s to 450,000 shares (0.07%), and combined holdings to 16,494,966 shares (2.73%). Preliminary legal consultation indicates that the company’s control rights have not substantively changed; Desheng remains the controlling shareholder, and control has not shifted. However, there is a potential risk of future control changes. Investors are advised to invest rationally and be aware of risks.

4. According to the “Interim Measures for the Management of Share Reduction by Shareholders of Listed Companies,” Article 15, Paragraph 1: Shareholders reducing shares through judicial enforcement, pledge, margin trading, or buyback breaches must comply with relevant regulations and rules of the stock exchange. Article 13, Paragraph 1: Shareholders reducing shares via agreement transfer or other means must adhere to the exchange’s rules, and transferees cannot reduce their shares within six months of acquisition. The “Guidelines for Self-Regulation of Shareholders and Senior Executives’ Share Reduction” (2025 revision) also specify restrictions. The transferors and transferees involved in this auction must comply with restrictions on share transfer ratios and disclosure requirements. Transferees cannot reduce their shares within six months of acquisition; violations may lead to legal liability.

5. As of this disclosure, the auction is in the public notice stage. The court has the right to suspend or withdraw the auction before or during the process. The final outcome may involve bidding, non-bidding, payment, and transfer procedures, with inherent uncertainties. The company will continue to monitor the progress and urge relevant shareholders to fulfill disclosure obligations timely.

6. The company reminds investors that “Securities Times” and “Shanghai Securities News” are designated disclosure newspapers, and information will also be disclosed on the China Securities Journal and the official website.

III. Documents for Reference

1. Letter from Desheng Company and Mr. Qiu Jianmin regarding the judicial auction of some shares.

This announcement is hereby made.

Board of Directors of Shenzhen Derun Electronics Co., Ltd.

March 16, 2026