Huanxi Media directors face Model Code breach over share disposals

Huanxi Media Group Limited disclosed that its controlling shareholders and non-executive directors, Mr. Ning Hao and Mr. Xu Zheng (collectively, "relevant directors"), were involved in dealings of the company's securities that fell within a "blackout period." Newwood Investments Limited, a company wholly-owned by former chairman Mr. Dong Ping and acting in concert with the relevant directors, sold an aggregate of 119,370,000 company shares, representing approximately 3.26% of the total issued share capital, between July 30, 2025, and August 21, 2025. This period immediately preceded the publication of the company's interim results on August 29, 2025, constituting a breach of paragraph A.3 of the Model Code for Securities Transactions by Directors of Listed Issuers.

The relevant directors stated they were not informed of the disposals prior to them occurring, preventing compliance with notification and acknowledgement requirements under paragraphs B.8 and B.9 of the Model Code. While the board acknowledged the disposals were outside the relevant directors' prior knowledge and control, it still deemed them non-compliant with the Model Code.

In response, Huanxi Media has implemented remedial measures. Mr. Dong Ping has agreed that, effective August 22, 2025, he and his controlled entities will not deal in company shares during blackout periods without notifying the relevant directors and receiving written confirmation. The company has also re-circulated the Model Code to all directors and relevant employees and plans to arrange training to enhance corporate governance awareness.