Anhui Xinhua Media strengthens governance with new reporting and disclosure rules

Anhui Xinhua Media Co., Ltd. has revised its internal reporting system for significant information, aiming to enhance timely and accurate disclosure and safeguard investor interests. This system mandates that board members, senior management, and departmental heads report any events that could materially affect the company’s securities prices. New rules for substantial transactions, including asset purchases or sales exceeding 10% of total assets or a net asset value of yuan 10 million, or related-party transactions over yuan 300,000 for natural persons and yuan 3 million for legal entities, require prompt reporting.

The company also introduced a new system for preventing the misuse of company funds by controlling shareholders and related parties. This includes strict oversight of related-party transactions, regular audits by the internal audit and financial departments, and clear guidelines for non-cash asset settlements, ensuring independent director and shareholder approval for such transactions. Furthermore, a new accountability system for major annual report disclosure errors mandates strict penalties for non-compliance.

To ensure compliance, the company has updated its internal reporting and information disclosure procedures, requiring detailed record-keeping and a structured approval process for all public announcements. A new internal information insider registration and management system will track individuals with access to non-public information, reinforcing confidentiality and preventing insider trading. These integrated frameworks aim to bolster corporate governance, protect company assets, and ensure fair and transparent communication with all stakeholders.